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March 04, 2013

AMR wants court to approve Republic regional jet deal with 6 fewer jets

AMR has modified its agreement with regional carrier, Republic Airways, to include 6 fewer jets, according to a court filing made on Friday.

The Fort Worth-based airline has asked the court to approve the 12-year deal with Republic with the modifications. A hearing on the deal is set for March 12

"The modifications will reduce the cost of the transaction to American without jeopardizing American’s ability to promptly secure the benefits of the Agreement or comprising the Debtors’ schedule to phase the aircraft covered by the Agreement into operation as contemplated by the Debtors’ business plan," the motion said.

The original agreement called for AMR to purchase 53 Embraer E-175 76-seat jets which included 6 used aircraft. The new agreement removes AMR's purchase of the 6 used jets. The 47 jets that will be purchased under the agreement that Republic will operate for AMR will be new aircraft.

"The removal of the 6 used aircraft should also increase the Debtors’ overall EJet fleet fuel efficiency due to the fact that a higher percentage of the now 47 aircraft will be delivered with fuel technology enhancements," the motion said.

-Andrea Ahles

 

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