Republic Airways Holdings Signs Component Agreement with Embraer
INDIANAPOLIS--(BUSINESS WIRE)-- Republic Airways Holdings Inc. (NASDAQ: RJET/NM) today announced that it has reached an agreement with Brazilian aircraft manufacturer Embraer (NYSE: ERJ; BM&FBOVESPA: EMBR3) on a Flight Hour Pool Program under which Embraer will provide component support for Republic's fleet of Embraer jet aircraft.
Embraer's Flight Hour Pool Program is designed to minimize an airline's upfront investment on high-value repairable inventories and resources, while taking advantage of the company's technical expertise and its component service provider network. More than 400 repairable part numbers, including systems such as hydraulic, electrical and engine components will be covered under the agreement with Republic. Under the program, Republic will sell certain parts to Embraer and will lease them back over the term of the agreement.
Republic's E-170, 175 and 190 aircraft will be covered under the program through February 2020; the E145 family will be covered through December 2017. Up to 308 aircraft will be covered under the program, potentially including Republic's recent aircraft order of 47 E175 aircraft and 47 options.
"As we look to achieve best-in-class economics in the operation of our aircraft fleet, we believe it makes sense to leverage our manufacturing partners' expertise at the component MRO level," said Republic Chief Executive Officer Bryan Bedford. "We are very confidence that the Embraer Flight Hour Pool Program will provide the quality, timely service and necessary maintenance savings for our growing E-jet fleet from this leading aircraft manufacturer. We look forward to incorporating these benefits into our operations."
"This agreement with Republic continues to broaden and deepen our relationship with one of our most valued, long term customers," said John Linn, Vice President, Services and Support, North America, Embraer Commercial Aviation, "We are very proud of the trust the largest E-Jets operator in the world has placed in Embraer Services."
About Republic Airways Holdings
Republic Airways Holdings, based in Indianapolis, Indiana, is an airline holding company that owns Chautauqua Airlines, Frontier Airlines, Republic Airlines and Shuttle America, collectively "the airlines." The airlines operate a combined fleet of more than 280 aircraft and offer scheduled passenger service on nearly 1,500 flights daily to over 145 cities in the U.S. as well as to the Bahamas, Canada, Costa Rica, Dominican Republic, Jamaica, and Mexico under branded operations at Frontier, and through fixed-fee flights operated under airline partner brands, including AmericanConnection, Continental Express, Delta Connection, United Express, and US Airways Express. The airlines currently employ approximately 10,000 aviation professionals. For more information on Republic Airways, please visit our website at www.rjet.com.
Embraer S.A. (NYSE: ERJ; BM&FBOVESPA: EMBR3) is the world's largest manufacturer of commercial jets up to 120 seats, and one of Brazil's leading exporters. Embraer's headquarters are located in São José dos Campos, São Paulo, and it has offices, industrial operations and customer service facilities in Brazil, China, France, Portugal, Singapore, and the U.S. Founded in 1969, the Company designs, develops, manufactures and sells aircraft and systems for the commercial aviation, executive aviation, and defense and security segments. It also provides after sales support and services to customers worldwide. For more information, please visit www.embraer.com.br.
Republic Airways Holdings Inc.
Peter Kowalchuk, 317-471-2470
Margaret Miller, 317-246-2628
KEYWORDS: United States North America Indiana
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