Republic Airways Holdings has announced further revisions to its contractual relationship with United Airlines (UA, Chicago O'Hare).
Republic said in a statement that among the added amendments to its Capacity Purchase Agreement (CPA) with United are: an increase in reimbursement rates; an extension in the duration of the thirty-eight E170 aircraft Republic flies for United under its United Express banner (ten with Republic Airlines (Indianapolis International) and twenty-eight with Shuttle America (Fort Wayne International)); an improved flight schedule; and revisions to the delivery schedule for the remaining E175s on order from Embraer (EMB, São José dos Campos Professor Urbano Ernesto Stumpf).
Republic also said that in the wake of what it termed "contentious" negotiations, it had agreed to settle a USD193 million unsecured pre-bankruptcy claim filed by United. The claims stem from reduced flying caused by Republic's pilot shortage and increased costs from the new agreement.
Republic is using its Chapter 11 bankruptcy proceedings to restructure a number of its CPAs and to extricate itself from the leases of several aircraft types, such as the E145 and Dash 8-400, deemed surplus to current operational requirements.
