Republic Airways makes omnibus agreement with US Airways Group

Airline Industry Information, March 15, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Republic Airways Holdings Inc (NASDAQ/NM:RJET) and its majority shareholder, Wexford Capital LLC, have reached an agreement with US Airways Group Inc.

According to the airline it has reached an omnibus agreement, including provisions for the affirmation of an amended Chautauqua Airlines Jet Service Agreement (JSA); a potential new jet service agreement with a Republic subsidiary for the operation of Embraer 170 and 190 aircraft; a conditional USD125m dollar equity commitment and up to USD110m in asset-related financing.

The terms of the agreement are reportedly being filed by US Airways Group Inc with the US Bankruptcy Court for the Eastern District of Virginia in Alexandria. According to the airline the omnibus agreement contains several provisions, including the amendment of the existing Chautauqua JSA, a reduction in compensation of approximately 3% on the existing 35 ERJ-145 fleet effective upon court approval of the agreement and a one-time option for US Airways to remove five ERJ-145 aircraft from the existing Chautauqua JSA.

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