Market Overview

Republic, Delta Reach Agreement to Restructure Codeshare Relationship

Share:

On March 24, 2016, Republic Airways Holdings Inc. (NASDAQ: RJET) and Delta Air Lines, Inc. (NYSE: DAL) reached agreement to holistically restructure the parties' codeshare relationship. The amended agreements provide substantial and interrelated operational and economic benefits, including a consensual wind-down of the Single Class Agreement (50 seat aircraft), the full settlement of the litigation between Delta and Republic, the return of full flying of all thirty (30) E170s and E175s subject to, and an increase in reimbursement rates under, its Dual Class Agreement (EJET), compensation for certain slot lease agreements, and modifications to the parties' Ground Handling Agreement. Additionally, Delta has agreed to enter into a Debtor-In-Possession (DIP) Credit Agreement that will provide $75 million in liquidity to the Company in support of its restructuring plan. The Company filed a motion in the United States Bankruptcy Court for the Southern District of New York seeking approval of such agreements. The motion will be heard before the Honorable Sean H. Lane on April 14, 2016. The new agreements will become effective upon issuance of the approval order by the court.

 

Related Articles (RJET + DAL)

View Comments and Join the Discussion!

Posted-In: News Contracts Press Releases