Regional carriers Republic Airways and Mesa Airlines are now a single company.
The merger of the two airlines, first announced in April, officially closed Tuesday, company officials announced. The resulting entity, known as Republic Airways Holdings, now owns the world’s largest Embraer fleet, with nearly 300 E170 and E175 aircraft, and operates over 1,300 daily departures, making it one of the largest regional airlines in the U.S.
Mesa shareholders voted in favor of the linkup on Nov. 17, clearing the last major regulatory hurdle for the partners.
“This merger establishes a combined company with a common mission to provide safe, clean, and reliable service to connect people and communities across America,” Republic Airways CEO David Grizzle said in a statement. “The transaction will create value for all of our stakeholders and strengthen the regional aviation industry. Today, Republic returns to the public markets as a well-capitalized airline with a strong strategic plan, a capable and proven workforce of aviation professionals, and a horizon bright with opportunity.”
Even though they are now legally one company, Republic and Mesa will maintain “parallel operations” while executives work to consolidate the airlines into a single carrier. They will also continue to operate flights for their current airline partners. Republic has service agreements with United, Delta, and American, while Mesa works only with United, flying as United Express.
Under the terms of the merger agreement, Republic shareholders own approximately 88% of the combined company’s common stock, while Mesa stockholders will own at least 6% and up to 12%, subject to the final settlement of Mesa’s pre-closing obligations.
As of Tuesday, Republic Airways Holdings will trade under the ticker RJET on the NASDAQ Global Select Market.
