Republic Airways Holdings will not invest in the reorganisation of US Airways, but will buy 28 Embraer 170s and related assets from the bankrupt carrier for $100 million. Republic agreed in March to invest $125 million in the airline, but says the America West merger agreement and equity deals with Air Canada and Air Wisconsin have led US Airways to decline the offer. Instead, the regional operator will purchase 10 E-170s from the airline and assume the leases on 18 and operate them for US Airways, beginning late in the third quarter. Republic has also agreed to operate five more E-170s for United Airlines, taking the total to 28 by year-end, but will remove two Embraer ERJ-145s from United Express service.

Source: Flight International

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