Republic Airways became the second regional airline to claim a stake in US Airways last month when it inked a conditional deal to commit $125 million in equity and up to $110 million in asset-related financing. The deal came just weeks after a bankruptcy court judge approved a deal between US Airways and Air Wisconsin that will see the Appleton, Wis.-based regional take its own equity stake in the bankrupt major airline and fly up to 70 regional jets as US Airways Express (see Regionals Update, this page). However, US Airways must attract another $100 million in cash before Republic commits to its investment.
Under the agreement, still contingent on bankruptcy court approval, US Airways could get another $110 million through the sale and financing of certain assets to Republic, including 10 Embraer 170s. US Airways could also assign Republic the leases for another 15 Embraer 170s, while Republic helps locate an Embraer heavy maintenance facility within the US Airways network.
