Republic forms Joint Venture with Mesa!

[CRJDriver]

News Release

Republic Airways Forms Joint Venture with Mesa to Operate Hawaii Service

INDIANAPOLIS--(BUSINESS WIRE)--Oct. 13, 2009-- Republic Airways Holdings (NASDAQ: RJET) today announced that it had reached an agreement with Mesa Air Group to form a joint venture (“JV”) to combine the jet routes currently flown by both Mesa and Republic. Under the agreement, E170 routes currently operated by Republic Airways will be transitioned to jet service provided by Mesa Airlines. The three E170 aircraft will be returned to the mainland by November and will operate in Republic Airways’ branded network.

All passengers holding tickets on Shuttle America operated flights will be reaccomodated on flights operated by Mesa.

Under the terms of the JV agreement, Mokulele shareholders will contribute their ownership of Mokulele to the JV and will own 25% of the new venture. Additionally, current Mokulele shareholders will be obligated to fund up to $1.5 million to capitalize the JV. Republic, which is the majority shareholder of Mokulele, will forgive Mokulele’s $3.1 million outstanding debt to Republic, net of surrendered aircraft deposits.

“During this period of economic stress within our industry, it is especially important to closely match capacity with demand, and this arrangement allows Mokulele to right-size the aircraft within its network,” said Bryan Bedford, chairman, president and CEO of Republic Airways Holdings. “Meanwhile, the agreement allows Republic Airways to reallocate its E170 aircraft within its branded airline operations, where they will be able to contribute to our network rebuilding efforts.”

Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Frontier Airlines, Lynx Aviation, Midwest Airlines, Republic Airlines and Shuttle America, collectively “the airlines.” The airlines offer scheduled passenger service on approximately 1,800 flights daily to 126 cities in 47 states, Canada, Mexico and Costa Rica under branded operations at Frontier and Midwest, and through fixed-fee airline services agreements with five major U.S. airlines. The fixed-fee flights are operated under an airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, and US Airways Express. The airlines currently employ over 11,000 aviation professionals and operate 294 aircraft.

Source: Republic Airways Holdings

Republic Airways Holdings
Media Contact:
Carlo Bertolini, 317-484-6069
or
IR Contact:
Timothy Dooley, 317-487-4308

 

[flymo]

When does this madness end....One regional flying for another regional

 

[v1valarob]

Its amazing. Republic pilots make too much now, so they have to out source.

 

[meyers9163]

Say what? So is Mesa next on the radar?

 

[Hernandezcfi]

Republic is not a Reginal. It's a Majinal!

 

[ppragman]

It'll be funny to get on Go! then in hawaii, because they'll say "Welcome to Mokulele Airlines, dBa Go!, dBa Mesa Airlines."

 

[RPJ]

Say what? So is Mesa next on the radar?

Mesa just bought 75% of Mokulele. Mesa will also be flying Shuttle America routes in the Midwest.

Hawaii was a complete failure for RAH.

 

[H46Bubba]

Mesa just bought 75% of Mokulele. Mesa will also be flying Shuttle America routes in the Midwest.

Hawaii was a complete failure for RAH.

Hawaii yes; but go! doesn't even fly in the mainland! Where the heck did you get that from? No article I've read or official press release from both airlines have stated that.

 

[Baronman]

http://denver.bizjournals.com/denver/stories/2009/10/12/daily35.html?ana=yfcpc

How about this article?

"Also, mainland routes currently served by Republic subsidiary Shuttle America will be operated by Go! beginning Thursday. The routes are mostly in the Midwest."

So now Republic flying is being farmed out to Mesa in Hawaii as well as the mainland. Hmm..not surprising, but will anyone complain once movement starts again??

 

[RWH1986]

Soon:

MESA subsidiary of RAH?

 

[H46Bubba]

http://denver.bizjournals.com/denver/stories/2009/10/12/daily35.html?ana=yfcpc

How about this article?

"Also, mainland routes currently served by Republic subsidiary Shuttle America will be operated by Go! beginning Thursday. The routes are mostly in the Midwest."

So now Republic flying is being farmed out to Mesa in Hawaii as well as the mainland. Hmm..not surprising, but will anyone complain once movement starts again??

The routes operated by Shuttle America are operated for United. That would require United's approval. If this is true then Tilton must be smoking some serious stuff!

 

[jynxyjoe]

Bah!!!hahahahahahaha

 

[ChasenSFO]

I don't know how any of the newcomers in Hawaii make money. Hawaiian, Mokulele, Go!, and Islandair all charge pretty much the same fare for flights unless they fill up. $49 each way plus tax. Lets look at HNL-OGG. Hawaiian has flights literally every 5-10 minutes for much of the day then maybe every 20 minutes or half hour in the afternoon and evening. Go! has maybe 10 flights in the whole day. You miss a Go! flight, might be a several hour wait for the next one. Miss a Hawaiian flight and the next one is probably already boarding. So how do they make any money competing with mainline aircraft operating at that frequency for the same price and you don't have to be crammed into an RJ?

On top of that, the locals hate Go! Whenever the subject came up when I was out there, they blame Go! for everyone at Aloha losing their jobs, not Hawaiian or the others.

Frankly I'm surprised Go! is still around. Does Mesa even make money out there?

 

[derg]

Wellllll, when I was domestic, I was flying for Delta Connection Connection.

 

[SpiraMirabilis]

The routes operated by Shuttle America are operated for United. That would require United's approval. If this is true then Tilton must be smoking some serious stuff!

Since Shuttle America flies all E170s -- unless UA is so disgusted with one of their regional codeshares competing directly with them that they'd rather replace a 70 seat with a 50 seater then yeah, it seems kind of like a mistake.

 

[falconvalley]

It's a mistake alright. It's a typo.

 

[SoCalAprch]

It's a mistake alright. It's a typo.

Management has already told recurrent classes that this was a typo and that we are just selling off the Mokulele biz to Mesa. The 170s will be brought back to the mainland and operated under what they call our "branded" operation.

 

[SpiraMirabilis]

Well, kind of sucks for Mokulele -- assuming Mesa ends up owning them. Say what you will about RAH but I'd rather be integrated into their seniority list than Mesa's. Heh.

 

[kellwolf]

Heh, if they were farming the Shuttle routes to Mesa, I doubt that'd make Delta very happy. Then they'd be in court trying to gut TWO contracts......

 

[falconvalley]

Management has already told recurrent classes that this was a typo and that we are just selling off the Mokulele biz to Mesa. The 170s will be brought back to the mainland and operated under what they call our "branded" operation.

Roger that. Say...anything else interesting being said in recurrent??

PM me if you need to!