Subsidiaries of Republic Airways Holdings amend agreements with Delta.
Republic Airways Holdings (NASDAQ: RJET) has said that its operating subsidiaries, Chautauqua Airlines and Shuttle America, have amended their fixed-fee agreements with Delta Air Lines.
Currently the two airlines operate a total of 55 Embraer regional jets on behalf of Delta, which represents approximately 30% of the current fleet of Republic Airways. The amended agreements are subject to bankruptcy court approval.
Under the terms of the agreement all 15 E135 aircraft currently operated by Chautauqua will be removed from the Delta Connection programme at a rate of two aircraft per month, beginning in September 2008. In addition reimbursement on Chautauqua's remaining 24 E145 and Shuttle America's 16 E170 aircraft will be permanently reduced by approximately 3%, effective on the latter of the court approval date or 1 May 2007.
Delta will surrender 100% of its warrants on approximately 3.4m shares of Republic Airways common stock. These warrants represented approximately 1.0m shares as included in the company's diluted share count at 31 December 2006.
Republic Airways will be granted a pre-petition, unsecured, general claim in the amount of USD91m in Delta's Chapter 11 bankruptcy case.
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|Publication:||Airline Industry Information|
|Article Type:||Brief article|
|Date:||Mar 14, 2007|
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