storminpilot
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http://biz.yahoo.com/prnews/041222/clw054_1.html
Press ReleaseSource: Delta Air Lines
Delta Reaches Agreement With Republic Airlines for Operation of 16 Embraer 170 Aircraft for Delta Connection
Wednesday December 22, 5:00 pm ET
ATLANTA, Dec. 22 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL - News) has reached agreement with Republic Airlines, a subsidiary of Republic Airways Holdings, Inc., for the operation of 16 new 70-passenger Embraer 170 aircraft in the Delta Connection route system. Eight aircraft will be delivered to Republic in 2005, with eight additional aircraft joining the fleet in 2006. The Embraer 170s scheduled for 2005 will replace eight 50-seat ERJ 145 aircraft previously scheduled for delivery to Republic Airways' Chautauqua Airlines subsidiary.
The agreement is subject to execution of the final definitive codeshare agreement with Republic Airlines and will be substantially similar to the existing codeshare agreement with Chautauqua. In connection with the new agreement, Republic Airways Holdings will issue warrants to Delta allowing for the purchase of up to 960,000 of its common shares at an exercise price equal to the closing price of RJET common stock, as reported by NASDAQ, on Dec. 22, 2004. The warrant is subject to a number of conditions including the number of aircraft delivered and the continued performance of Delta over the duration of the service agreement.
"Chautauqua continues to be a reliable and cost-efficient provider of regional jet service to Delta," said Fred Buttrell, president and CEO, Delta Connection, Inc. "We are pleased to replace existing orders for 50-seat aircraft with roomy and customer-friendly Embraer 170s, which better fit our growth plans for 2005 and 2006 and allow us to promptly respond to changing market conditions. The Embraer 170's extended range and enhanced customer amenities will play an important role in fulfilling network requirements not currently met by Delta Connection carriers' existing fleet of regional jet aircraft."
Republic Airlines will acquire the 16 new aircraft directly from Embraer, requiring no capital investment from Delta. Additionally, Delta and Republic Airways Holdings have reached agreement on an amended contract that will reduce Delta's costs associated with existing flying by Chautauqua Airlines. In connection with these reduced costs, Delta and Republic have agreed to a cancellation of 2,025,000 existing warrants, or 45 percent of the warrants previously granted to Delta by RJET.
Delta plans to deploy the new jets in its domestic route system on routes that cannot be served economically with mainline aircraft or on routes currently served by 50-seat jets that require additional capacity.
"We are very pleased we were able to take a proactive stance towards working with Delta in their successful restructuring efforts. In doing so we were able to provide Delta long-term savings in our existing business and also provide a cost-effective solution for new 70-seat Embraer 170 regional jets," said Bryan Bedford, chairman, president and chief executive officer of Republic Airways Holdings. "Our company has an excellent tradition of delivering safe, reliable and cost effective service to our partners - including our proven operation of the Embraer 170. We are excited to add the Embraer 170 to the Delta Connection program."
Embraer 170s in the Delta Connection configuration will feature 70 seats, including a six-seat first-class cabin that offers customers two-and-one seating with 36-inch seat pitch. The coach cabin will include 64 seats in a two-by-two configuration with 32-inch seat pitch. The aircraft's unique cross- section provides superior passenger comfort in the form of a larger cabin with maximized cabin width at shoulder level, a wider aisle, larger seats, higher baggage capacity, improved personal space and increased leg room. The Embraer 170 is powered by twin, under-wing mounted General Electric CF34-8E engines.
Delta Connection carriers include Delta's wholly owned subsidiaries Atlantic Southeast Airlines and Comair, additional regional carriers Chautauqua Airlines and SkyWest Airlines, and codeshare partner American Eagle (in California). Delta Connection carriers operate more than 400 regional jets throughout North America.
Delta Air Lines is proud to celebrate its 75th anniversary in 2004. Delta is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 487 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. For more information, please visit delta.com.
Press ReleaseSource: Delta Air Lines
Delta Reaches Agreement With Republic Airlines for Operation of 16 Embraer 170 Aircraft for Delta Connection
Wednesday December 22, 5:00 pm ET
ATLANTA, Dec. 22 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL - News) has reached agreement with Republic Airlines, a subsidiary of Republic Airways Holdings, Inc., for the operation of 16 new 70-passenger Embraer 170 aircraft in the Delta Connection route system. Eight aircraft will be delivered to Republic in 2005, with eight additional aircraft joining the fleet in 2006. The Embraer 170s scheduled for 2005 will replace eight 50-seat ERJ 145 aircraft previously scheduled for delivery to Republic Airways' Chautauqua Airlines subsidiary.
The agreement is subject to execution of the final definitive codeshare agreement with Republic Airlines and will be substantially similar to the existing codeshare agreement with Chautauqua. In connection with the new agreement, Republic Airways Holdings will issue warrants to Delta allowing for the purchase of up to 960,000 of its common shares at an exercise price equal to the closing price of RJET common stock, as reported by NASDAQ, on Dec. 22, 2004. The warrant is subject to a number of conditions including the number of aircraft delivered and the continued performance of Delta over the duration of the service agreement.
"Chautauqua continues to be a reliable and cost-efficient provider of regional jet service to Delta," said Fred Buttrell, president and CEO, Delta Connection, Inc. "We are pleased to replace existing orders for 50-seat aircraft with roomy and customer-friendly Embraer 170s, which better fit our growth plans for 2005 and 2006 and allow us to promptly respond to changing market conditions. The Embraer 170's extended range and enhanced customer amenities will play an important role in fulfilling network requirements not currently met by Delta Connection carriers' existing fleet of regional jet aircraft."
Republic Airlines will acquire the 16 new aircraft directly from Embraer, requiring no capital investment from Delta. Additionally, Delta and Republic Airways Holdings have reached agreement on an amended contract that will reduce Delta's costs associated with existing flying by Chautauqua Airlines. In connection with these reduced costs, Delta and Republic have agreed to a cancellation of 2,025,000 existing warrants, or 45 percent of the warrants previously granted to Delta by RJET.
Delta plans to deploy the new jets in its domestic route system on routes that cannot be served economically with mainline aircraft or on routes currently served by 50-seat jets that require additional capacity.
"We are very pleased we were able to take a proactive stance towards working with Delta in their successful restructuring efforts. In doing so we were able to provide Delta long-term savings in our existing business and also provide a cost-effective solution for new 70-seat Embraer 170 regional jets," said Bryan Bedford, chairman, president and chief executive officer of Republic Airways Holdings. "Our company has an excellent tradition of delivering safe, reliable and cost effective service to our partners - including our proven operation of the Embraer 170. We are excited to add the Embraer 170 to the Delta Connection program."
Embraer 170s in the Delta Connection configuration will feature 70 seats, including a six-seat first-class cabin that offers customers two-and-one seating with 36-inch seat pitch. The coach cabin will include 64 seats in a two-by-two configuration with 32-inch seat pitch. The aircraft's unique cross- section provides superior passenger comfort in the form of a larger cabin with maximized cabin width at shoulder level, a wider aisle, larger seats, higher baggage capacity, improved personal space and increased leg room. The Embraer 170 is powered by twin, under-wing mounted General Electric CF34-8E engines.
Delta Connection carriers include Delta's wholly owned subsidiaries Atlantic Southeast Airlines and Comair, additional regional carriers Chautauqua Airlines and SkyWest Airlines, and codeshare partner American Eagle (in California). Delta Connection carriers operate more than 400 regional jets throughout North America.
Delta Air Lines is proud to celebrate its 75th anniversary in 2004. Delta is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 487 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. For more information, please visit delta.com.
