Embraer to restructure Chautauqua financings

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Embraer has agreed to restructure its financing agreements with Chautauqua Airlines for its Embraer 145 family aircraft, as the regional airline seeks to lower costs.

The Brazilian manufacturer says that it has a combination of straight financings and operating leases with Chautauqua on the aircraft, in a statement on 13 September. It expects the modified agreements to be complete by the end of October.

Chautauqua parent Republic Airways is seeking cost cuts at the regional of between $40 million and $60 million by the end of the year or has threatened to "move away" from the 50-seat operation, as Bryan Bedford, chairman and chief executive of Republic, put it in August.

The regional carrier operates a fleet of 15 E140s and 55 E145s, according to the Flightglobal Ascend database. Only 33 of those aircraft - 11 E140s and 22 E145s - are owned.

Aircraft Services leases eight E145s, GE Capital 15 E145s, Mitsui seven E145s, Silvermine River Finance Two four E140s and two E145s, and TA Air XVI one E145 to Chautauqua, according to Ascend.

Republic did not comment by press time.