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Republic loans more money to Midwest

  • Thread starter Thread starter dave_MKE
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dave_MKE

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Republic ups loan to Midwest, adds small aircraft to the current deal
By Lori Ranson


Republic Airways Holdings has agreed to loan a further $6 million to Midwest airlines and add 12 37-50-seat jets to flying Republic current conducts on behalf of Midwest.
Prior to the latest loan, Republic has supplied $25 million in loans to Midwest. An original $15 million loan coincided with the two companies reaching a deal for Republic to fly 12 70-seat Embraer E-170s for Midwest.
Last month the agreement was broadened to include two extended range Embraer E-190 aircraft that are scheduled to start service in August and September.
Republic detailed the latest changes to its relationship with Midwest in a filing with US regulators. The 12 smaller jets are scheduled to enter service by January 2010. The company says all the aircraft will be sourced from its existing fleet or through a third party lessor.
 
Continental CRJ's? United ERJ's? I will say that I thought it was almost a sure thing the Republic was going to furlough more in September. Now I don't think they will.
 
Learn from SkyWest. I think we have basicly been flying for break even..I guess we finaly said enough.
 
Midwest Airlines getting $12 million in financing
By Tom Daykin of the Journal Sentinel
Posted: Jun. 8, 2009 5:22 p.m.

Midwest Airlines Inc. is getting additional financing from Indianapolis-based Republic Airways Holdings Inc., another sign of Republic's increasingly important role in the fate of the financially troubled carrier.

Republic has agreed to loan Midwest an additional $6 million, according to a filing Monday with the Securities and Exchange Commission.

The Republic loan is being match by $6 million in additional financing from TPG Capital, which holds a 53% stake in Midwest. That's according to a source who saw a memo about the Republic and TPG financing.

Also, Republic's contract to fly jets for Midwest Airlines and Midwest Connect is growing, the filing says.

Republic will add 12 Embraer regional jets, with 37 seats to 50 seats apiece, to the contract. All of those jets will begin flying for Midwest by January, the filing says.

Those Republic jets will replace the 12 50-seat CRJ200 regional jets now flown for Midwest by St. George, Utah-based SkyWest Inc.
 
Maybe if they throw some 37 seaters on some of those routes, they'll finally be able to achieve a 50% load factor
 
Come to think about it, the argument back in Jan 08 for getting rid of the 328's was that they could operate the CRJ, and get more seats, for the same cost.

So, now they want to back-peddle. Imagine that.
 
deadstick said:
Come to think about it, the argument back in Jan 08 for getting rid of the 328's was that they could operate the CRJ, and get more seats, for the same cost.

So, now they want to back-peddle. Imagine that.
Click to expand...
Looks like Skyway was a good idea
 
It is not about keeping MEH afloat. It is about making sure the can get Right of First Refusal, after TPG, and DAL.
It is a big game of chess.
 
ACL65PILOT said:
It is not about keeping MEH afloat. It is about making sure the can get Right of First Refusal, after TPG, and DAL.
It is a big game of chess.
Click to expand...

I guess if you want a ops certificate with 717's on it....Oh wait, there all going away and not allot of 717's on the market. all your getting is the name.
 
Looks like Midwest's blocking of the Airtran deal was the worst thing they could've done.
 
I hope Republic buys Midwest when they fail...It'll be interesting watching Southwest move in and flatten the Rev BB.
 
flyboyzz1 said:
I hope Republic buys Midwest when they fail...It'll be interesting watching Southwest move in and flatten the Rev BB.
Click to expand...

There are much bigger things going on here. Midwest is done at any time. Since it's private, your options are to put more money in or sell/bankrupt it. For reasons I can't fully understand myself, they keep putting money in. We don't know if Republic is paying for the cert., Delta is looking for scope relief, Delta is looking to shut down Comair then Midwest so Republic can stay in the game and Delta can downsize the RJ fleet, Midwest to be the next Compass owned by Republic. The real possibilities are almost endless. There are bad things coming as a result, that much you should be sure of.
 
That's another option as well. Short term it could seem like that, but like I said, who knows what the real end game is.
 

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