Republic Buys Planes, Slots From US Airways.(Republic Airways Holdings, US Airways Express) July 11, 2005
US Airways has decided to accept Republic Airways' offer to buy its fleet of Embraer 170s.
Last March, Republic offered US Airways a deal worth $235 million. It would invest $125 million to help recapitalize the bankrupt carrier and pay $110 million for the 28 existing Embraer planes and future purchase options, as well as the slot rights at New York LaGuardia Airport and Ronald Reagan Washington National Airport .
Gates sold to Republic and leaseback to US Airways, 113 commuter slots at Washington Reagan National
Airport and 24 commuter slots at New York LaGuardia Airport.
Does anybody know when the lease back runs out on these slots. Do you think Republic is about to put these in play? Can they sell them to the highest bidder? Could this be the reason US is downsizing in LGA?.
Republic can not sell these slots to anyone but US and only at the price that US sold them to Republic for. So RP got to use and own them but they must sell them back to US whenever US wants them back. This was just to get US some cash for BK2.
