Seems the whole MDA situation is going to get even stranger:
US Airways to Raise $100 Million in Sale of 28 Regional Jets to Republic Airways
ARLINGTON, Va. (AP) -- US Airways Group Inc. on Thursday said it will sell 28 regional jets and slot assets to Republic Airways Holdings Inc. in a move to generate $100 million in liquidity for the bankrupt carrier.
The deal comes as the company completes a Chapter 11 restructuring and eventual merger with America West Airlines. The jets and slots will continue to operate as US Airways Express.
US Airways announced in March 2005 a multi-part agreement with Republic Airways and equity firm Wexford Capital LLC to sell certain assets -- and where Republic/Wexford could be an equity investor in the US Airways Chapter 11 restructuring. Since then, the US Airways-America West merger was announced. US Airways has elected not to request Republic to invest in the reorganization and merger, Republic Airways said.
Republic is expected to begin the process of taking the first Embraer aircraft this summer, and then placing all the aircraft on its operating certificate by mid-2006. US Airways and Republic remain in discussions about additional 70- and 90-seat regional jets that might be added to the US Airways Express fleet in future years.
Earlier in the day, a federal judge approved a deal between US Airways and General Electric Co. that amends an airplane leasing and financing pact to facilitate the airline's proposed merger with America West Holdings Corp.
US Airways to Raise $100 Million in Sale of 28 Regional Jets to Republic Airways
ARLINGTON, Va. (AP) -- US Airways Group Inc. on Thursday said it will sell 28 regional jets and slot assets to Republic Airways Holdings Inc. in a move to generate $100 million in liquidity for the bankrupt carrier.
The deal comes as the company completes a Chapter 11 restructuring and eventual merger with America West Airlines. The jets and slots will continue to operate as US Airways Express.
US Airways announced in March 2005 a multi-part agreement with Republic Airways and equity firm Wexford Capital LLC to sell certain assets -- and where Republic/Wexford could be an equity investor in the US Airways Chapter 11 restructuring. Since then, the US Airways-America West merger was announced. US Airways has elected not to request Republic to invest in the reorganization and merger, Republic Airways said.
Republic is expected to begin the process of taking the first Embraer aircraft this summer, and then placing all the aircraft on its operating certificate by mid-2006. US Airways and Republic remain in discussions about additional 70- and 90-seat regional jets that might be added to the US Airways Express fleet in future years.
Earlier in the day, a federal judge approved a deal between US Airways and General Electric Co. that amends an airplane leasing and financing pact to facilitate the airline's proposed merger with America West Holdings Corp.
