Republic Airways Holdings Inc. and Mesa Air Group, Inc. have announced their decision to merge, creating a major regional airline through an all-stock agreement. The new entity will retain the name Republic Airways Holdings Inc., continuing to trade on NASDAQ under the ticker symbol “RJET.”
“The announcement is an exciting next step in Mesa’s more than 40-year history, representing the best outcome for our shareholders, employees, and stakeholders,” said Jonathan Ornstein, Chairman and CEO of Mesa Air Group.
“La anunciación es un emocionante próximo paso en la historia de más de 40 años de Mesa, que representa el mejor resultado para nuestros accionistas, empleados y todas nuestras partes interesadas.”
Bryan Bedford, President and CEO of Republic Airways, expressed enthusiasm about the merger, stating, “We’re thrilled to unite the Republic and Mesa teams, enhancing our joint mission to connect communities across America.”
Overview of Republic Airways
Established in 1974, Republic Airways has become a leading regional carrier in the United States, operating over 240 Embraer 170/175 aircraft and providing services for major airlines like American Airlines and Delta Air Lines. In 2024, the airline reported net income of approximately $65 million on revenues of around $1.5 billion.
Strategic Benefits of the Merger
- Economies of Scale: Merging will enhance the operational scale, making regional flights more efficient.
- Improved Financial Position: The new entity anticipates a pro forma net leverage of approximately 2.5x.
- Complementary Operations: The merger will unite both airlines’ networks to create a more robust regional airline option.
Commitment to Safety and Reliability
The culturally compatible teams at Mesa and Republic are committed to ensuring safety and reliability for their passengers. Both companies have passed the International Air Transport Association’s Operational Safety Audit, underlining their dedication to operational excellence.
