Republic and Embraer sign $250m component support deal

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Republic Airways Holdings has signed a $250m component support agreement with Embraer for up to 308 aircraft.

The flight hour pool agreement will include support for up to 308 Embraer aircraft. Republic's Embraer 170s, 175s and 190 aircraft will be covered under the component agreement through February 2020 and the smaller Embraer E145s will be serviced through December 2017.

Republic says the deal could "potentially" include aircraft from its recent order of 47 Embraer 175s with 47 options, which the carrier will fly under a 12-year flying agreement with American Airlines. Those aircraft will enter the Republic fleet between 2013 and 2015.

Republic will sell some parts to Embraer and lease them back during the agreement, which will cover repairs for more than 400 part numbers. These parts include hydraulic, engine and electrical components.

"As we look to achieve best-in-class economics in the operation of our aircraft fleet, we believe it makes sense to leverage our manufacturing partners' expertise at the component MRO level," says Republic executive Bryan Bedford in a statement. "We are very confident that the Embraer Flight Hour Pool Program will provide the quality, timely service and necessary maintenance savings for our growing E-jet fleet from this leading aircraft manufacturer. We look forward to incorporating these benefits into our operations."