Republic moves to dump lease agreements

Dino D'Amore
By Dino D'Amore June 2, 2016 17:08

Republic moves to dump lease agreements

Republic Airways Holdings is seeking to extricate from lease agreements for 29 of its airplanes and two facilities as it aims to move away from 50-seat-or-less regional jets in favor of larger aircraft.
“An integral step in Republic’s restructuring is its plan to streamline its operations by operating a single aircraft type (E170/175) by returning out-of-favor aircraft, like the ERJ 140/145 aircraft,” the company said in court documents filed Tuesday.
The airline wants to reject its leases with GE Capital Aviation Services for 28 Embraer regional jets and nine spare engines. All of the regional jets are either ERJ 140s or ERJ 145s.
The aircraft are currently located at a repair and storage facility in Kingman, Arizona. The engines are in Kingman, Louisville, and in Columbus, Ohio.
Republic said it has already reached an agreement with Delta to “wind down flying of this aircraft type (ERJ 140 and ERJ 145) over the next few months.”
Republic also seeks to reject a lease with Dougherty Air Trustee. This lease is for a single aircraft, an Embraer ERJ 170. Republic said it was unable to reach an agreement with Dougherty to restructure lease terms for this aircraft.
A court hearing on all three of these motions is scheduled for June 15.
Dino D'Amore
By Dino D'Amore June 2, 2016 17:08