Republic Airways and Mesa Air Merger Creates Second-Largest US Regional Airline, and More
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Mesa Air Merges with Republic Airways to Create America's Second-Largest Regional Airline
Mesa Air Group and Republic Airways announced today they will merge in an all-stock transaction to create one of the leading regional airlines in the United States.
The combined entity, which will retain the Republic Airways Holdings name and trade on NASDAQ under the new ticker symbol "RJET," will maintain a fleet of approximately 310 Embraer E170/175 aircraft with over 1,250 daily departures.
Republic shareholders will own 88% of the new company, while Mesa shareholders will hold between 6-12%, with the merger expected to close in late Q3 or early Q4 of 2025.
Key Points
- The combined airline projects $1.9 billion in annual revenue with pretax margins of 7-9%
- Republic will continue partnerships with American, Delta, and United, while Mesa's operations will support United under a new 10-year capacity purchase agreement
- Mesa will not contribute any debt to the combined entity, and all outstanding Mesa debt obligations will be extinguished
- Bryan Bedford, Republic's CEO (and Trump's nominee for FAA Administrator), will lead the combined company with Republic's executive team
- The merger has been unanimously approved by both boards and awaits regulatory and shareholder approvals
What It Means
This consolidation strengthens the regional airline sector by creating a more financially stable carrier with significant economies of scale.
The merger provides Mesa shareholders with a lifeboat amid financial challenges while giving Republic expanded operational capacity and a stronger position in negotiations with major carriers.
The regional airline industry continues to evolve in response to post-pandemic challenges, including pilot shortages and changing relationships with major airlines.
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