Republic Airways and American Airlines reach agreement on long-term commercial relationship

Republic Airways has reached an agreement with American Airlines that secures a long-term relationship between the two airlines and on September 5 has filed a motion for its approval in the United States Bankruptcy Court for the Southern District of New York. The amended agreement provides for:
– a single capacity purchase agreement that prescribes the flying commitments and obligations of Republic and American related to the legacy American and US Airways capacity purchase agreements,
– permitting the removal of certain aircraft, an extension in duration of Republic’s flying for certain aircraft for American, which will facilitate Republic’s ability to favorably restructure the remaining aircraft financing obligations, and allowing for the potential restoration of service of a certain number of aircraft, subject to Republic’s ability to secure suitable financing of the aircraft;
– facilitates Republic’s transition to a single air carrier operating certificate by reconfiguring 80-seat aircraft to 76-seat configuration.