Regional airlines Republic Airways, Mesa Air Group are combining in an all-stock deal

MICHELLE CHAPMAN

Mon, Apr 7, 2025, 5:50 AM 2 min read

Republic Airways and Mesa Air Group Inc. are combining successful an all-stock woody that volition make a determination hose with entree to much planes to work routes.

Specific fiscal presumption of the woody weren't disclosed successful a connection Monday.

Republic, started successful 1974, has a fleet of much than 240 Embraer 170/175 craft and carried astir 17.5 cardinal passengers connected much than 300,000 flights past year. It mostly serves Northeast and Mid-Atlantic hubs and operates exclusively nether semipermanent capableness acquisition agreements with American Airlines, Delta Air Lines and United Airlines.

Mesa Air Group, founded successful 1982, is the holding institution of Mesa Airlines, a determination aerial bearer that offers work to 89 cities successful 40 states, the District of Columbia, the Bahamas, Canada, Cuba, and Mexico. It runs a fleet of 60 Embraer 175 craft with much than 250 regular scheduled departures and has astir 1,700 employees.

Mesa operates each of its flights arsenic United Express nether the presumption of a capableness acquisition statement with United Airlines.

The combined hose volition person a azygous fleet of astir 310 Embraer 170/175 aircraft, with much than 1,250 regular departures. It volition proceed to service American Airlines, Delta and United Airlines and anticipates keeping each formation crews, technicians, and different operational staff.

“Republic and Mesa stock a communal ngo to link communities crossed America, and we judge that we tin amended execute that ngo together," Republic President and CEO Bryan Bedford said successful a connection connected Monday. "With this combination, we are establishing a single, well-capitalized, nationalist institution that volition payment from the heavy expertise of Republic and Mesa associates, creating worth for each stakeholders good into the future.”

The combined institution volition beryllium called Republic Airways Holdings Inc. and volition beryllium listed connected the Nasdaq nether the caller ticker awesome “RJET.” Its committee volition see six existing directors from Republic's committee and 1 autarkic manager from the Mesa's board.

Once the transaction closes, Republic shareholders volition ain 88% of the combined company’s stock. Mesa shareholders volition ain astatine slightest 6% and up to 12% of the combined company, babelike connected achieving definite pre-closing criteria. All outstanding Mesa indebtedness obligations volition beryllium extinguished arsenic a effect of the transaction.

Both companies' boards person approved the deal, which is targeted to adjacent successful either the precocious 3rd oregon aboriginal 4th quarter. It inactive needs support from the shareholders of some companies.

Shares of Mesa Air Group, based successful Phoenix, Arizona, surged much than 67% to $1.20 earlier the marketplace open.