Republic Airways Holdings (RAH) has proposed granting creditor airlines and lessors equity as part of its Second Amended Joint Plan of Reorganization.

A filing with the US Bankruptcy Court for the Southern District of New York shows that of its newly issued common stock, RAH is prepared to offer American Airlines approximately 25%, Delta Air Lines approximately 17.35%, and United Airlines approximately 19.16% for a total of 61.51%. Additionally, certain other claimants, including affiliates of Embraer and GECAS, would be offered equity of what RAH termed "more than 5%".

RAH qualified the proposal stating that the creditors, given their sizeable stakes in the firm, would have substantial control and say in the running of RAH once it exists Chapter 11 bankruptcy, expected by late January of 2017.

“Given the concentrated holdings of the New Common Stock upon emergence from chapter 11, a few of the large holders of New Common Stock, were they to act as a group, could control the outcome of certain actions requiring stockholder approval, including the election of directors, or block actions requiring majority or supermajority consent.”

RAH used its Chapter 11 proceedings to iron out revised Capacity Purchase Agreements (CPA) with each of American, United, and Delta while settling an outstanding lawsuit with Delta. It was also able to strike agreements with lessors and manufacturers concerning the return and withdrawal of certain unwanted leased/financed aircraft types deemed unsuitable to its future operations. To date, eighty E140/145s, twenty-seven Dash 8-400s, and nineteen E170/175s have been returned.

As it stands, RAH expects to complete the consolidation of its Shuttle America (S5, Fort Wayne Int'l) unit into Republic Airlines (YX, Indianapolis Int'l) by January 31, 2017.