Republic Airways subsidiary amends agreement with American Airlines

Airline Industry Information, Oct 27, 2008

AIRLINE INDUSTRY INFORMATION-(C)1997-2008 M2 COMMUNICATIONS LTD

Republic Airways Holdings Inc (NASDAQ:RJET) has announced that its subsidiary Chautauqua Airlines and AMR Corporation (NYSE:AMR), the parent company of American Airlines, have amended their services agreement.

The amendment will result in the reduction of aircraft operating under the agreement from 15 to 13 E140 regional jets from June 2009.

There will be a reduction in the reimbursement rates received by Chautauqua Airlines for services performed under the agreement of around 3% as of 1 April 2009.

Additionally, the date on which American Airlines may early terminate the agreement will be extended by three years, from March 2009 to March 2012.

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