Mesa Airlines and Republic Airways announce merger forming new regional airline

According to the merger agreement, Republic shareholders will hold 88% of the new company's common shares. Mesa shareholders will own between 6% to 12% of the company, dependent on Mesa meeting certain pre-closing criteria. Additionally, all of Mesa's existing debt obligations will be settled following the merger. Post-merger, the combined entity will be managed by Republic's executive leadership team, with the board comprised of six directors from Republic and one independent director from Mesa.

The merger sees further integration between the two airlines' fleets and operations, with enhanced scale and efficiency across the board. The combined company will operate about 310 Embraer 170/175 aircraft with over 1,250 daily departures, leveraging the current base structures and routes of Mesa and Republic. The continuing operation will involve existing partnerships with major airlines such as American Airlines, Delta Air Lines, and United Airlines. Both airlines have committed to maintaining their respective flight crews and operational staff after the merger.

Republic Airways is a significant player among U.S. regional airlines, operating a fleet of over 240 Embraer 170/175 aircraft and serving approximately 17.5 million passengers across over 300,000 flights in 2024. The company has partnerships with major airlines through long-term agreements and generated about $1.5 billion in revenue with a net income of $65 million in the prior year.

Mesa Airlines, founded in 1982 and headquartered in Phoenix, operates scheduled passenger services across a diverse geography, connecting 89 cities in 40 U.S. states, the District of Columbia, and several international destinations. Operating a fleet of 60 Embraer 175 aircraft, Mesa Airlines performs its flights under the United Express brand.

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