Republic, Mesa in regional-carrier merger

Two airlines millions of Americans have flown on, possibly without realizing it, are merging, but because neither flies under its own name, the news is the only way you’d know.

Republic Airlines and Mesa Airlines flights all operate for the major network carriers, flying as United Express, Delta Express and American Eagle, connecting smaller cities to airline hubs using Embraer E170 and E175 76-seat jets. Republic, with 240 planes, is the larger; Mesa has 70 and flies only for United.

There’s not likely to be much regulatory issue, since there will be no change in flights or routes; only in ownership. For now, each will continue under its individual Air Operator Certificate, although eventually they will combine under a single certificate. The merger is expected to be complete this fall. It should be invisible to passengers since there are no loyalty or ticketing systems to be combined.

The merged company will keep the Republic name and management; the board of the new company will have six directors from Republic and one from Mesa, reflecting the new company’s 88% ownership by Republic shareholders and up to 12% by Mesa shareholders. Among those shareholders: American owns 25% of Republic, while United owns 10% of Mesa and 19% of Republic.

The merged company, which more or less blankets the eastern U.S., is second only to SkyWest. There are also a number of smaller regional carriers, some wholly-owned by airlines. Another independent carrier, Air Wisconsin, that formerly operated for American Eagle, suspended all flights this week and may attempt to survive as a charter operator.

Republic’s CEO, Bryan Bedford, will be leaving the airline soon—he’s awaiting confirmation as administrator of the Federal Aviation Administration.

Title image: a rare view of a Republic plane in its own livery

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