Delta Air Lines and United Airlines have taken minority stakes in Republic Airways Holdings, the recently established regional airline company formed by the combination of Mesa Air Group and Republic Airways.
News of Delta’s and United’s partial ownership of Republic Airways Holdings was first reported by the Engine Cowl.
Mesa and Republic completed their combination late last month, creating the second-largest feeder airline in the USA to only SkyWest Airlines, with a 310-strong fleet of Embraer regional jets.
On 25 November, Republic Airways issued some 46.9 million shares of common stock.
United’s recent filing with the US Securities and Exchange Commission (SEC) shows that the Chicago-based carrier has acquired 7.7 million Republic shares, or 18.2% of shares issued by the regional airline company.
Delta, meanwhile, has taken a 14.4% stake in Republic Airways Holdings, or 6.8 million of available shares, according to a 3 December SEC filing.The Atlanta-headquartered carrier was a shareholder of the pre-combination Republic Airways, and those shares have been converted to holdings in the now-publicly traded company.
Republic Airways trades under the “RJET” ticker on the New York Stock Exchange at a price of about $18.50 on 5 December.
Mesa previously disclosed that it will continue flying exclusively on behalf of United under a new 10-year capacity purchase agreement.
Republic Airways will keep operating on behalf of American Airlines, Delta and United.
