Key Developments For Republic Airways Holdings Inc
Republic Airways Holdings Inc (RJET.O) (Nasdaq)
Republic Airways Holdings Inc. Forms Joint Venture With Mesa Air Group To Operate Hawaii Service
Republic Airways Holdings Inc. 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. 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.
Frontier Airlines Holdings, Inc. Announces Completion Of Acquisition By Republic Airways Holdings, Inc.
Frontier Airlines Holdings, Inc. announced that Republic Airways Holdings, Inc. has completed its acquisition of the Company. Upon the closing of the transaction, Frontier Airlines Holdings, Inc., Frontier Airlines, Inc. and Lynx Aviation, Inc. successfully emerged from Chapter 11 bankruptcy and are now wholly owned subsidiaries of Republic. Frontier Airlines and Lynx Aviation will continue to operate under their same names, offering the same flight schedules, customer amenities and frequent flier benefits as in the past.
Republic Airways Holdings Inc. Completes Midwest Acquisition
Republic Airways Holdings Inc. announced that it has completed its acquisition of Milwaukee-based Midwest Airlines from TPG Capital, a Ft. Worth, Texas-based private equity firm. On June 23, 2009, Republic announced that it had reached agreement with TPG Capital to acquire 100% of the equity of Midwest Airlines. Republic paid TPG $6 million in cash and has issued a $25 million five-year note, which may be converted to Republic Airways Holdings stock at $10 per share.
Court Approves Republic Airways Holdings Inc.'s Investment Agreement in Frontier Airlines Holdings, Inc. and Auction Procedures-Complete Story
Frontier Airlines Holdings, Inc. announced that the judge presiding over its 11 bankruptcy cases in the U.S. Bankruptcy Court for the Southern District of New York approved the proposed investment agreement between Frontier Airlines Holdings, Inc. and Republic Airways Holdings, Inc. Pursuant to the investment agreement, Republic has agreed to purchase 100% of the stock of Frontier Holdings upon its emergence from bankruptcy for $108.75 million, so long as certain conditions are met. Frontier Airlines Holdings would become a wholly owned subsidiary of Republic, an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. Frontier Airlines and Lynx Aviation would maintain their current names and continue to operate as usual. Under the auction procedures approved today by the Court, any interested bidders must submit an initial proposal by August 3, 2009, and a final proposal by August 10, 2009. Frontier and its advisors, in consultation with the Unsecured Creditors` Committee appointed in Frontier`s chapter 11 cases, will conduct an auction, if necessary, on August 11, 2009, to consider all qualified proposals and determine the highest or otherwise best proposal. Frontier currently expects to emerge from Chapter 11 this autumn.
Republic Airways Holdings Inc. to Acquire Midwest Airlines
Republic Airways Holdings Inc. announced that it is acquiring Milwaukee-based Midwest Airlines from TPG Capital, a Fort Worth, Texas-based private equity firm. The transaction is subject to customary regulatory approvals and is expected to close in four to six weeks. Republic will acquire 100% of the equity of Midwest and TPG`s $31 million secured note from Midwest. Consideration will be $6 million in cash and a $25 million, five-year note, which may be converted to Republic Airways Holdings stock at $10 per share. In addition, TPG will have the right to nominate a member to the Republic Board of Directors. Under the agreement, Midwest will become a wholly owned subsidiary of Republic Airways, with the Midwest brand continuing. Midwest`s Boeing 717s will be replaced with Embraer 190 aircraft, enhancing Midwest`s ability to offer nonstop service to key destinations important to its frequent flyers.
