October 27, 2008
Republic Airways to Amend Services Agreement With AMR
Republic Airways Holdings has announced that its Chautauqua Airlines subsidiary has agreed to amend its services agreement with AMR, the parent company of American Airlines.
The key commercial terms of the amendment include: the reduction of aircraft operating under the agreement, as of June 2009, from 15 to 13 E140 regional jets, and a reduction of approximately 3% of the reimbursement rates received by Chautauqua for its services performed under the agreement, effective April 1, 2009.The commercial terms of the amendment also include an extension of the date on which American Airlines may early terminate the agreement by three years, from March 2009 to March 2012.
The two aircraft removed will continue to be reimbursed by American as spare aircraft unless Chautauqua otherwise sells, subleases or places the aircraft.