Republic Airways, Mesa Air Group form JV
Published: 16 Oct 2009
Mesa Air Group has formed a joint venture with Frontier Airlines’ parent company Republic Airways Holdings. The two aviation companies will jointly operate their flights in Hawaii.
As per the deal, Republic’s Mokulele and Mesa’s go! airline will combine operations in Hawaii. Mesa will own 75 percent of the JV’s units and Mokulele shareholders will own 25 percent. Republic is Mokulele’s controlling shareholder.
The move will reduce the number of competing inter-island carriers from three to two, the other being Hawaiian Airlines.
Mokulele’s three 70-seat Embraer 170s routes will be transitioned to jet service provided by Mesa Airlines. The three E-170 aircraft will be returned to the mainland by November to operate in Republic Airways’ branded network. Mokulele began offering the jet service last November.
“During this period of economic stress within our industry, it is especially important to closely match capacity with demand, and this arrangement allows Mokulele to right-size the aircraft within its network,” Bryan Bedford, Republic chairman, president and CEO, said. “Meanwhile, the agreement allows Republic Airways to reallocate its E170 aircraft within its branded airline operations, where they will be able to contribute to our network rebuilding efforts.”
Mokulele has about 160 Hawaii employees, go! has 330. There was no immediate word on if the deal will lead to layoffs.
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