Republic Airways and Mesa Airlines Agree to Merge

Key Points

• Republic Airways and Mesa Airlines plan to merge, forming a company named Republic Airways, expected to generate $1.9 billion in revenue.
• The merger is intended to increase efficiency with a larger fleet but requires shareholder and regulatory approvals.
• Regional carriers face challenges from pilot shortages and competition from larger airlines operating bigger aircraft.

Summary

Republic Airways and Mesa Airlines, two major U.S. regional carriers, announced plans to merge into a single entity called Republic Airways. The all-stock merger, pending approvals, aims to improve operational efficiency and is expected to generate $1.9 billion in revenue. The merger comes amid challenges for regional airlines, including pilot shortages and competition from larger carriers using bigger aircraft.