20:55 20 March 2009Regional Route and Network Planning Mergers and Acquisitions Traffic Results Used aircraft deals and transactions Mfr Finance and Business Narrowbody Labour relations Maintenance Business Strategy Routes New aircraft orders and deliveries
<p>US regional operator Republic Airways Holdings has deepened its ties with new partner Mokulele Airlines after converting an existing loan into an equity stake in the Hawaiian carrier. </p><p>Republic in October 2008 negotiated a deal with Mokulele for its Shuttle America subsidiary to operate four Embraer E-170s on inter-island routes, and also loaned the Hawaiian carrier $8 million. </p><p>Operations started in November, but last month Mokulele barely escaped defaulting on a $300,000 payment to Republic after its employees agreed to defer wages in order for the carrier to pay Republic. </p><p>In a recent earnings call outlining Mokulele's discussions with stakeholders to recapitalize, Republic CEO Bryan Bedford said: "We are obviously, if we have to, we are going to become a lot more intimate with what it means to be a Hawaiian airline." </p><p>Bedford and Republic followed through on that pledge after the carrier agreed to convert a large portion of the $8 million loan into a 50%