Republic Airways Holdings plans to acquire10 Embraer E-190AR aircraft from US Airways.

The regional airline operator, which previously supplied a $35 million loan to US Airways, in a statement says it will apply the balance of the loan to the purchase of the aircraft and will assume the remaining debt on the aircraft.

Four of the 99-seat jets are expected to enter service on behalf of Republic's Milwaukee, Wisconsin-based subsidiary Midwest Airlines between November and December, with the remaining aircraft placed into service for branded operations during the first half of 2010.

The first four deliveries will replace Midwest's outgoing Boeing 717s, the last of which will fly on 3 November.

Republic subsidiary Republic Airlines currently operates five E-190s, according to Flightglobal's ACAS database, with two of the aircraft sourcedfrom lessor GECAS.

Last year US Airways secured a loan from Republic as part of a $950 million financing and liquidity package the US major developed to prepay a $1.6 billion bank facility.

At that time, US Airways accepted $10 million from Republic and then drew the full $35 million loan from Republic in May 2009.

Republic CEO Bryan Bedford told ATI in June of this year that he had no plans to order E-190s from airframer Embraer but would source the aircraft from the existing marketplace.

A month later US Airways disclosed that it was considering the sale of its 25 E-190s as a means to manage capacity during the economic downturn.

While Republic awaits the arrival of its latest E-190s, its new Frontier Airlines subsidiary will operate five Airbus A319s in Milwaukee starting next month.

Frontier will operate some of its narrowbodies on longer-haul, high-density, low-yield markets from Milwaukee.

Source: Air Transport Intelligence news