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Republic agrees to US Airway loans

October 23, 2008

Indianapolis-based passenger carrier Republic Airways Holdings Inc. said today it has agreed to loan US Airways Group Inc. as much as $35 million.

Republic offered an initial, $10 million loan, on Oct. 20, and has made available an additional $25 million in the first quarter of 2009.

Republic flies smaller jets for US Airways, headquartered in Tempe, Ariz. Republic, the parent of Chautauqua Airlines, Republic Airlines and Shuttle America, also flies for American, Continental, Delta and United.

US Airways, which along with other carriers has struggled to make a profit amid high fuel prices, announced today that it had raised $950 million of financing and near-term liquidity commitments.

US Airways reported today that it lost $689 million in the third quarter after earning $177 million a year earlier.

Republic shares edged up 6 cents, to $12.54, in morning trading. US Airways stock fell $1.16, to $7.33.

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