On April 7, 2025, Republic Airways Holdings Inc. The mesa air Group, Inc. On plans to integrate it and create force in the American regional aviation sector.
This deal will witness from all shares that the joint entity be renamed The Republic of Airways Holdings Inc.Trading on the Nasdaq Stock Exchange under the “RJET” index. Integration unites two operators with a common focus on linking disadvantaged societies in the United States. The joint company will benefit from supplementary fleets and operational points to enhance the reliability and efficiency of the service.
Strategic vision and leadership views
Jonathan OrensteinThe Chairman and CEO of Mesa praised the merger as a pivotal moment in the company’s legacy for 40 years. In a statement, he emphasized the benefits of shareholders and employees alike.
“By gathering our best organizations, we will establish a regional airline that continues to connect societies across America while providing opportunities for our employees,” he said.
Brian Bidford, President of the Republic and CEO, chanted this feeling.
“We are happy to combine the republic teams and Mesa to create one of the major Embraer Jet operators in the world,” Bidford said. “With this mixture, we create a single -capital public company that will benefit from deep experience in the Republic of Misa Associated, which creates value for all stakeholders in the future.”
The synergy aims to create a good -capital entity on its head in the long run.
Fleet synergy and operational synergy
Republic Airlines: Titan Regional
Founded in 1974, Republic runs a fleet of more than 240 Embraer E170/E175 aircraft. The carrier recorded 591,000 hours and served 17.5 million passengers in 2024. Its headquarters at Indianapolis International Airport (IND), the Republic operates primarily across the northeast and in the Atlantic Ocean. The carrier flies exclusively under the CEO purchase (CPAS) agreements with US Airlines, the Delta Air Lines, and United Airlines. With a new 15 E175s, it is scheduled to be delivered in 2025, all of which are wiped by all debts, to grow more.
Misa Air Group: Western Reach
Mesa was founded in 1982, complements Republic with 60 E175s, and runs more than 250 daily departures across 89 cities. Its headquarters is located in Phoenix, Mesa only flies as UNIDED Express under a comprehensive peace agreement with United Airlines. The merger will unify these operations in a unified fleet of about 310 E-Jets, while maintaining existing bottom structures and more than 1250 daily departures.
Network’s advantages combined
It enhances the integration process, which will improve the management of the crew resources and regional aviation efficiency. The integrated network will continue to support America, Delta and UNITED under the current and new professionals agreement, including the United 10 -year agreement for Mesa after the merger. One FAA operating certificate will simplify organizational compliance.
Financial expectations and stability
In 2024, Republic reported revenue of $ 1.5 billion and $ 65 million of net income, with EBITDA worth $ 254 million. The debt -free Mesa contribution to the joint public budget integration is enhanced, as Pro Forma’s revenues of $ 1.9 billion and modified EBITDA (pre -interest, taxes, consumption and firefighting) that exceed $ 320 million.
The cash reserves after the merger will be $ 285 million, with debts of $ 1.1 billion, which leads to a net lever of 2.5X and liquidity above 15 % of revenues. This financial durability supports investments in the quality of service and flexibility against market fluctuations.
Cultural alignment and safety
Both airlines participate in adhering to safety and operational excellence, as it is clear from their inclusion in the IATA operating safety script record (iASA). Integration maintains this spirit, while keeping all flying crews, technicians and operating staff. The leadership team in the Republic will lead the joint company, with the support of a council that includes six managers of the republic and one independent director in Mesa, to ensure continuity and experience.
Transactions mechanics and timeline
Republican shareholders will retain 88 % of the integrated entity, as the MESA shareholders have 6 % to 12 %, and depend on the pre -closed landmarks. The Mesa debt will be canceled, with a three -party agreement strengthened with United Airways that facilitate the disposal of assets and the management of responsibility.
It was approved by each of the councils, the deal is awaiting organizational gestures and shareholders, and aims to close in the late third or early Q4 2025.