Republic Airways and Delta Air Lines reach comprehensive agreement on long-term commercial relationship

Republic Airways Holdings has reached agreement with Delta Air Lines, to holistically restructure the parties’ codeshare relationship. The motion filed in the United States Bankruptcy Court for the Southern District of New York is a significant first step towards achieving the goals established at the outset of this case, and upon approval by the court, will deliver immediate improvements in profitability and cash flow for Republic. The amended agreements provide substantial and interrelated operational and economic benefits, including a consensual wind-down of the Single Class Agreement (50 seat aircraft), the full settlement of the litigation between Delta and Republic, the return of full flying of all thirty E170s and E175s subject to, and an increase in reimbursement rates under, its Dual Class Agreement (EJET), compensation for certain slot lease agreements, and modifications to the parties’ Ground Handling Agreement. Additionally, Delta has agreed to enter into a Debtor-In-Possession (DIP) Credit Agreement that will provide US$75mn in liquidity to Republic in support of its restructuring plan. The new agreements will become effective upon issuance of the approval order by the court. “This enhanced partnership agreement with Republic means together we’ll be better positioned to offer Delta customers with the reliable, consistent product they expect,” said Erik Snell, Delta Vice President—Delta Connection.