United Airlines set to retain stake in Mesa, Republic merger

As of the end of 2024, United Airlines held about 10% equity interest in Mesa Air Group. The merger intends to form a regional airline with approximately 310 Embraer E170/E175 aircraft. Data indicates that Mesa Airlines also operates 11 Mitsubishi CRJ900, 22 CRJ900ER, and 13 CRJ900LR planes.

The merger received the endorsement of both airlines' Boards of Directors and is anticipated to close in the third or fourth quarter of 2025. The merger agreement specifies that Republic Airways and Mesa Air Group shareholders will retain 88% and 6% ownership of the new entity, respectively.

The merger could alter United Airlines' regional flight operations. According to Cirium's Diio Mi tool, United Airlines has scheduled 13,456 weekly regional flights for April, with a significant portion operated by SkyWest Airlines, Republic Airways, and Mesa Airlines.

Several airlines, including SkyWest, CommuteAir, and GoJet, currently operate these flights. Following the merger, 3,736 weekly flights are planned to be operated by the combined entity.

Overall, United Airlines could benefit from the merger through increased equity in the newly formed Republic Airways Holdings, provided certain criteria are met before the merger's completion. The agreement showcases a strategic step in adjusting United's regional operations while securing potential equity benefits.