Republic Airways and Mesa Airlines Agree to Merge
Photo Credit: A Mesa Air Group CRJ900 in Santa Barbara. Glenn Beltz/Flickr Flickr / Glenn Beltz
Skift Take
Regional carriers have struggled to bounce back since the pandemic.
Republic Airways and Mesa Airlines, two of the largest regional carriers in the U.S., said Monday that they plan to merge.
The two carriers said the merged company would be called Republic Airways and listed as “RJEt.” The all-stock agreement is expected to close in the late third quarter or early fourth quarter of the year, pending shareholder and regulatory approvals.
The combined company is expected to generate $1.9 billion in revenue and will be led by Republic’s executive team. Republic and Mesa said they expect the combined company will be able to be more efficient with a larger, unified fleet.
Republic operates flights for the regional subsidiaries of American, Delta and United. Bryan Bedford, the CEO of Republic, was recently nominated by President Donald Trump to lead the Federal Aviation Administration.
Mesa flies for United, after American cut ties with the regional carrier in 2022 due to concerns about its financial and operational reliability.
Regional carriers have been struggling since the pandemic as their pilots joined the ranks of larger airlines. These carriers have also dealt with increasing costs used to pay for higher wages to attract and retain staff.
Large carriers have also been opting to use larger aircraft for more flights or operating their own wholly owned regional subsidiaries, further straining regional airlines.
Once the merger closes, the two companies said Republic shareholders will own 88% of the company’s common shares. Mesa shareholders will hold 6% of the company’s shares at a minimum, and up to 12%.
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