Mon, May 02, 2011
Network Adjustments Planned For Frontier Operation
Republic Airways Holdings has amended its capacity purchase
agreement with Delta Air Lines to provide for the addition of six
dual-class E170 aircraft. The move announced Thursday follows a
previously announced amendment in January 2011 in which Delta added
eight Embraer 170 aircraft to its capacity purchase agreement with
the Company.
The additional six aircraft are expected to be placed into Delta
Connection service between July and October 2011 and will have a
term of six years from the in-service date for Delta. All 14 E170s
will be operating for Delta by Oct. 1, 2011. After the addition of
these aircraft, the Company and its subsidiaries will operate a
total of 54 aircraft on behalf of Delta: 16 E175s, 14 E170s, and 24
ERJ 145s.
The six E170 aircraft are currently operating in service under
Republic’s branded operation, Frontier Airlines. This fleet
reallocation furthers the Company’s plans to remove all E170
aircraft from the Frontier operation and provides the Company the
opportunity to make network adjustments and capacity reductions to
create better efficiency and lower costs for the branded operation.
The Company now expects 2011 capacity, as measured by ASMs, to be
flat or grow up to 1% on its Frontier operations.
“These fleet adjustments between our contract and branded
operations allow us to maximize our aircraft portfolio in the most
cost-effective way,” said Bryan Bedford, chairman, president
and CEO of Republic Airways. “In light of current oil prices
we will continue to focus on developing Frontier’s most
successful and profitable routes while managing capacity at
responsible levels.”
Republic will also remove three of its ERJ 135 aircraft from its
fleet at the end of their lease term this September. In addition,
the six E190 aircraft currently on firm order, and slated for
delivery in the third and fourth quarters of 2011, will be delayed
by an average of two months due to part delays as a result of the
earthquake in Japan. The Company now plans to spread the delivery
of those aircraft through the first quarter of 2012.
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