(Source: Datamonitor)
Republic Airways Holdings has reached an agreement with Mesa Air Group to form a joint venture to combine the jet routes currently flown by both the airlines.
Under the agreement, E170 routes currently operated by Republic Airways will be transitioned to jet service provided by Mesa Airlines. The three E170 aircraft will be returned to the mainland by November 2009, and will reportedly operate in Republic Airways's branded network.
All passengers holding tickets on flights operated by Shuttle America, a subsidiary of Republic Airways, will be reaccomodated on flights operated by Mesa.
Under the terms of the joint venture (JV) agreement, Mokulele Airlines's shareholders will contribute their ownership of Mokulele to the JV and will own 25% of the new venture.
Additionally, current Mokulele shareholders will be obligated to fund up to $1.5 million to capitalize the JV. Republic Airways, which is the majority shareholder of Mokulele, will forgive Mokulele's $3.1 million outstanding debt to Republic, net of surrendered aircraft deposits.
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