Indianapolis-based Republic Airways Holdings Inc. has reached an agreement with American Airlines securing a long-term relationship. Republic Chief Executive Officer Bryan Bedford says the deal marks another "major milestone in our journey towards a successful restructuring."
Bedford says the agreement is "paramount to our ability to implement our strategy of consolidating our air carrier operating certificates."
The agreement allows Republic to remove certain aircraft and extend the flying time of other aircraft for American. Republic says that allows it to restructure its remaining aircraft financing obligations and the potential restoration of some aircraft to service. The airlines have submitted the deal to the United States Bankruptcy Court for the Southern District of New York for approval. The court is expected to hear the motion September 21.
In May, Republic reached a long-term operation agreement with United Airlines.
The airline and some of its subsidiaries filed for Chapter 11 reorganization in February, saying at the time that the move was in the best interest of the company and its stakeholders.