Apr 07 2025
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Republic Airways and Mesa Air Announce Merger

By Leila

close-up of several airplanes with the tail fin of the plane

Two US regional carriers that fly on behalf of American Airlines, Delta Air Lines, and United Airlines have announced a merger that, if approved, would create a fleet of over 300 jets. Would a Republic Airways + Mesa Air Merger merger impact passengers?

Republic Airways + Mesa Air Merger

Indianapolis-based Republic Airways has a fleet of 240 Embraer 170/175 aircraft, with plans to take delivery for 15 more in 2025. It carried 17.5 million passengers on behalf of the big three legacy carriers in 2024 on more than 300,000 flights. Its focus is on the Northeast and Mid-Atlantic hubs of American, Delta, and United. In 2024, it reported a profit of $65 million (on total revenues of about $1.5 billion).

Phoenix, Arizona-based Mesa Airlines has a fleet of 60 Embraer E-175 and operates exclusively for United Airlines as United Express. It focuses on United’s Houston Bush Intercontinental (IAH) and Washington Dulles (IAD) hubs. United holds a 10% ownership stake in Mesa and has a seat on the Mesa board of directors.

What Does The Republic-Mesa Merger Hope To Achieve?

Like any airline merger, this marriage seeks to promote synergies and increase profit:

  • Economies of Scale
    • enhance the scale of the combined airlines, both financially, and operationally, with a larger, unified fleet
    • more efficient and productive regional flying and crew resource management
  • Enhanced Capital and Liquidity Position
    • Together, the combined company will have the financial strength and flexibility to make critical investments, drive sustained profitability, and continue delivering best-in-class customer service under a unified brand
  • Complementary Networks and Operations
    • The post-merger company will maintain a single fleet of approximately 310 Embraer 170/175 aircraft, with over 1,250 daily departures, across both airlines’ existing flying networks and will operate within Mesa’s and Republic’s current basing structures and routes
    • Mesa and Republic will continue to operate under their existing Federal Aviation Administration (FAA) operating certificates until securing a single-operating certificate for the combined airline
  • Synergistic Cultures Rooted in Safety and Reliability
    • Mesa and Republic “share common values and principles, which include an uncompromising focus on providing safe and reliable services for passengers, operational excellence, and a culture which provides career growth and advancement opportunities for associates.”
  • Talented Team Positioned for Exciting Growth Opportunities
    • The combined company will continue serving key partners, including American Airlines, Delta Air Lines, and United Airlines
    • The parties expect to retain all flight crews, technicians, and other operational staff within the post-merger entity

Bryan Bedford, Republic’s President and Chief Executive Officer, emphasized the efficiency that will result from a common combined fleet:

“We’re thrilled to combine the Republic and Mesa teams to create one of the world’s leading Embraer Jet operators. Republic and Mesa share a common mission to connect communities across America, and we believe that we can better achieve that mission together. With this combination, we are establishing a single, well-capitalized, public company that will benefit from the deep expertise of Republic and Mesa associates, creating value for all stakeholders well into the future.”

Jonathan Ornstein, Mesa’s Chairman and Chief Executive Officer, explained:

“Today’s announcement is an exciting next step in Mesa’s more than 40-year history, one that represents the best outcome for our shareholders, employees, and all of our stakeholders. By bringing the best of our organizations together, we will create a regional carrier that continues to connect communities across America while providing advancement opportunities to our employees.”

The combined carrier would still be smaller than SkyWest, the leading regional carrier in the USA by most metrics. No layoffs or base closures are expected due to this merger.

CONCLUSION

Republic and Mesa plan to merge, subject to regulatory approval. The combined carrier would continue business as usual serving American, Delta, and United, but believes it can do so in a more efficient way that will drive

Customers should not see any difference, as these carriers operate on behalf of others, not as their own brand.

image: Republic Airways

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