Republic Airways Holdings has reached a deal to continue providing regional flights for American Airlines, which clears the path to exiting bankruptcy. The agreement with American accounts for about half of Republic's revenue. The agreement initially reduces Republic's flying for the airline, there's an option to increase it with American's consent.
"The comprehensive commercial settlement and claims resolution with American is a major achievement for the debtors that clears the pathway for a successful emergence from Chapter 11," Republic said in the filing. The agreement must be approved by U.S. Bankruptcy Court Judge Sean Lane.