Republic of Airways and Mesa Air Group Inc. Combine in the field of action, which will create a regional airline with access to additional aircraft to the service routes.
Specific financial terms of the transaction were not disclosed in a statement on Monday.
The Republic, created in 1974, has a fleet of more than 240 EMBraer 170/175 aircraft, and last year about 17.5 million passengers were brought. It mainly serves northeast and medium Atlantic hub and works exclusively under long-term potential purchase agreements with American Airlines, Delta Air Lines and United Airlines.
Mesa Air Group, founded in 1982, is the Mesa Airlines Holding Company, a regional carrier offering services 89 cities in 40 states, Columbia District, Baham, Canada, Cuba and Mexico. It manages a fleet of 60 EMBraer 175 aircraft with more than 250 daily missions and has about 1,700 employees.
Mesa manages all flights like United Express according to the Power Purchase Terms with United Airlines.
The combined airline will have one fleet of approximately 310 Embraer 170/175, with more than 1250 daily missions. It will continue to serve US Airlines, Delta and United Airlines and awaits all crews, technicians and other operational staff.
“The republic and the MESS share a common mission to connect communities throughout America, and we believe we can better reach this mission together,” said President of the Republic and CEO Brian Bedford on Monday. “With this combination, we create a unified, well -covered, public campaign that benefits from the deep examination of the republic and Mesa Associates, creating a value to all stakeholders in the future.”
The combined company will be called the Republic Airways Holdings Inc. and will be listed on the list Nasdaq Under the new character “RJET”. His Council will include six existing directors of the Council of the Republic and one independent director of the MESA Council.
After the transaction closes, the republic’s shareholders will have 88% of the combined company. MESA shareholders will have at least 6% and up to 12% of the combined company, depending on the achievement of certain pre -closing criteria. All unpaid MESA debt commitments will be eliminated as a result of the transaction.
The councils of both companies approved a deal aimed at the closure either at the end of the third or the beginning of the fourth quarter. The approval of shareholders of both companies is still required.
Mesa Air Group shares based in Phoenix, Arizona, increased by more than $ 67 to $ 1.20 before the market opening.
Originally this story was presented on Fortune.com
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2025-04-07 15:48:00
Michelle Chapman, The Associated Press
