Republic Airlines (Indianapolis International) has been given the greenlight by a US Bankruptcy court to return to their lessor, several aircraft deemed surplus to current requirements.

According to Bloomberg, six E145s (in service with Shuttle America (Fort Wayne International)) and three engines will be returned to Citibank, which is an agent to an outstanding loan. The carrier has also been given permission to reject the delivery of a seventh aircraft, also on lease.

Citibank reportedly claimed the aircraft or engines are collateral under a revolving credit facility that now has a balance of USD23 million. US Bankruptcy Judge Sean Lane in turn said that Citibank, which had complained that some of the aircraft had been separated from their engines, will have to bring legal claims later if a compromise could not be reached.

On February 25, 2016, Republic Airways Holdings Inc. and six affiliated debtors each filed a voluntary petition for relief under US Chapter 11 Bankruptcy laws.

Republic is using the legislation to trim its fleet of unwanted aircraft types such as the Dash 8-400, the ERJ-145, and the E140.