October 16, 2008
Republic Airways to Operate Embraer 170 Regional Jets for Mokulele
Republic Airways Holdings has announced that its Shuttle America subsidiary has been selected by Mokulele Airlines to operate four, 70-seat Embraer 170 jets under a 10-year capacity-purchase agreement beginning November 19, 2008.
Mokulele Airlines will schedule, price, distribute and promote all of its flights, including those operated by Shuttle America. Mokulele will purchase all capacity at pre-determined rates and will directly pre-pay or reimburse Republic Airways for industry standard pass-through costs, including fuel.The first two aircraft are expected to be placed into service on November 19, 2008, with an additional two aircraft planned to enter revenue service during the spring of 2009. The agreement has a term of 10 years from the date of the first aircraft delivery.
Republic Airways will provide up to $8 million in direct financing to Mokulele in the form of a line of credit, which can be converted, at Republic's option, to up to 45% of the common stock of Mokulele.
Bryan Bedford, chairman, president and CEO of Republic Airways, said: "We look forward to bringing our dependable service to the beautiful islands of Hawaii and we are especially pleased to be partnering with Hawaii's locally owned Mokulele Airlines."