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Republic to fly for American, buy up to $4B in aircraft

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American Airlines has signed a 12-year agreement for Republic Airways Holdings Inc. to operate 76-seat regional jets, the first such agreement in the AMR Corp. unit’s history.

Fifty-three Embraer SA E-175 jets operated by Indianapolis-based Republic will be phased into service at two to three planes a month beginning in mid-2013 through the first quarter of 2015, the airlines said Thursday.

Republic also said it agreed to purchase 47 new aircraft from Brazilian plane maker Embraer and lease a previously owned E-175. It also will acquire five E-175s from an unnamed third party. Embraer’s contract with Republic includes options for another 47 aircraft orders. If all 94 planes were delivered at list prices, the value of the contract could reach about $4 billion, Embraer said.

The accord is part of American’s efforts to diversify suppliers of commuter flights beyond its American Eagle unit and to add larger regional jets that are more economical to operate at higher fuel prices. American, based in Fort Worth, Texas, was exploring a spinoff of Eagle when it filed for bankruptcy in November 2011.

Eagle has been limited to operating 47 Bombardier CRJ-700 regional jets with 65 seats for American by the larger carrier’s contract with its pilots union. Concessions made as the labor agreement was renegotiated in bankruptcy allow for more of the bigger jets to be flown for American.

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  1. What became of this project? Anyone know?

  2. Scott, could you post an enlarged photo of the exterior of the building? This will be a great addition to Walnut Street. This area will only continue to develop with additions like this. Also, please give us more updates on the "Cultural Trail light" expansion. Also a great move for the city, as long as there is maintenance money set aside.

  3. Great story IBJ! Citizens don't have a real sense of the financial magnitude of supporting Indy's sports and tourism sector. The CIB was a brilliant idea for creating a highly integrated public-private partnership to support this sector from the economic activity it generates. Unfortunately, most folks think the benefits of that economic activity accrue directly to the City budget, and it doesn't. So though the CIB is facing lean times (covering its costs while maintaining minimally acceptable reserves), the City is operating with deficit - less tax revenue than expenses each year - with a very fragile reserve balance. That's why it's so challenging for the City to fund basic needs or new intitatives (e.g. pre-k education; new jail), and some credit rating agencies have downgraded Indy from it's past stellar AAA status. More reporting on City finances would be welcomed.

  4. Sure, I'll admit that it bugs me to see that the IBJ.COM censors it's blog posts almost as much as the D of I does when someone points out the falsehoods and fabrications. _____But I think it bothers me almost as much that Captain/Defender/Disciple get his yanked too. You see, those of us with a sense of integrity, humanity, compassion, and a need for fact based opinion WANT to see all of his screeds posted. It makes our point so much better than we can do it ourselves.

  5. We're conflating two very different topics. Voter fraud is a myth and excessive gun violence is all too real. I just hope rational gunowners decide to stop being shouted down by the, well, let's call them "less rational" ones.

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