Republitauqua is Loaning $35 Million to USAir.

ZapBrannigan

Old School
Republic Airways to Provide up to $35 Million of Loans to US Airways
<script type="text/javascript">sp; //if(placement=="right") show_baynote_guide("ArticleGuide"); </script>
<script type="text/javascript">/*<![CDATA[*/adsonar_placementId=1348427;adsonar_pid=885768;adsonar_ps=-1;adsonar_zw=275;adsonar_zh=150;adsonar_jv='ads.adsonar.com';/*]]>*/</script><script style="display: none;" type="text/javascript" src="http://www.foxbusiness.com/js/adsonar.js"></script>INDIANAPOLIS, Oct 23, 2008 (BUSINESS WIRE) ----Republic Airways Holdings Inc. (NASDAQ: RJET: 12.02, -0.46, -3.68%) announced today that it has entered into a loan agreement with US Airways to provide up to $35 million in two tranches. The first tranche of $10 million was funded on October 20, 2008. At US Airways' option, and subject to certain other conditions, the second tranche of $25 million may be funded in the first quarter 2009. Interest will be paid quarterly, with the principal amounts to be repaid between October 2009 and October 2011.

"US Airways and Republic have enjoyed a successful partnership for nearly 35 years," said Republic President and CEO Bryan Bedford. "Through this partnership and over that time, we have developed a mutually beneficial relationship that centers on a commitment to our customers, employees and shareholders. Our investment in US Airways' today simply reaffirms our commitment to US Airways and its ability to continue managing through uncertain economic times for our industry."

US Airways Express President Dion Flannery stated, "We are extremely appreciative of the commitment Republic is making today, and greatly value their support over our long-standing partnership. We will work diligently with them so that our customers continue to benefit from our partnership and we look forward to future success with this integral partner in the US Airways network."

Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,200 flights daily to 99 cities in 34 states, Canada, Mexico and Jamaica through airline services agreements with six U.S. airlines. All of the airlines' flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, Midwest Connect, United Express and US Airways Express. The airlines currently employ approximately 4,400 aviation professionals and operate 233 regional jets.

SOURCE: Republic Airways Holdings Inc.
 

kellwolf

Piece of Trash



US Airways Express President Dion Flannery stated, "We are extremely appreciative of the commitment Republic is making today, and greatly value their support over our long-standing partnership. We will work diligently with them so that our customers continue to benefit from our partnership and we look forward to future success with this integral partner in the US Airways network."



Translation: "We're very happy Republic had the cash on hand to assure their future flying by buying it in advance."
 

Polar742

All the responsibility none of the authority
If I remember right, when CHQ/RAH whatever you wanna call it, bought the E170s, there was a provision for mo' money that wasn't exercised.

Then again, RAH also bought a bunch of slots and leased them back to USAir, and at the end of the term, if US had the dinero, they could buy them back. I wonder if RAH still owns the slots or if US bought them back?
 

DenverPilot8

Well-Known Member
Republic sure is loaning a lot of money out these days. Does anybody else see anything wrong with loaning money to severely struggling airlines? I love Frontier and they are my goal out of Denver but I would not be making major bets on them or US airways. I have a friend that workes at the accounting firm that handles US airways exclusively and she says that things a NOT pretty over there. Does this flying that they are buying in advance matter if there is no airline to get the flying from?
 

CFIscare

Well-Known Member
Does anybody else see not be making major bets on them or US airways. I have a friend that workes at the accounting firm that handles US airways exclusively and she says that things a NOT pretty over there. Does this flying that they are buying in advance matter if there is no airline to get the flying from?
Well, it worked out well the last time RAH gave money to USAir, and USAir was in far worse shape than they are now.
 

kellwolf

Piece of Trash
Well, it worked out well the last time RAH gave money to USAir, and USAir was in far worse shape than they are now.
Depends on what you define as "worked out." If US Airways weren't still struggling and on the brink, I'd agree it worked out. Until they're in the clear, I'd say that anyone with a stake in US Airways would be cautious about anything working out.
 
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