US Airways is considering selling the remainder of its Embraer 190 fleet, after reaching an agreement with Republic Airways Holdings to off-load a total 10 of the type to the regional airline operator.
During an earnings conference call today to discuss a third quarter net loss of $80 million, US Airways management revealed the carrier is assessing its options and considering the sale of the remaining 15 E-190s in its fleet.
Earlier this month the Star Alliance member announced plans to sell 10 of its 25 E-190s to Republic, which previously supplied the US major with a $35 million loan.
Under the agreement, Republic will apply the balance of the loan to the purchase of the aircraft and will assume the remaining debt on the aircraft. A further $3 million in cash will be paid by Republic to US Airways.
US Airways says the deal with Republic includes the sale/leaseback of a number of E-190s. The overall arrangement will reduce US Airways' debt by about $217 million.
Pulling the E-190s out of the network ultimately supports some of US Airways' planned reduction in transatlantic flying, as Boeing 757s are transitioned to domestic flying, triggering an overall down-gauge of equipment, says US Airways.
According to Flightglobal's ACAS database, US Airways has standing orders for a further 12 E-190s and options for 60 of the type.
Source: Air Transport Intelligence news
