Republic settles Delta lawsuit over cancelled flights

Delta Air Lines will drop a lawsuit against Republic Airways Holdings and provide US$75m in credit to help Republic rebuild under bankruptcy protection. As part of the settlement, Republic will stop flying small, 50-seat planes for Delta but continue to operate larger jets that are more economical. Republic is a key contractor for Delta Connection, which flies between major hub airports and secondary cities. Delta sued Republic last year, claiming that the contractor — which was dealing with a pilot shortage — had cancelled some Connection flights. Delta VP Erik Snell said that the settlement will let Delta Connection offer more reliable and consistent service. Republic CE Bryan Bedford said it would "preserve schedule integrity" for Connection customers. <br/>