American Air deal removes hurdle to Republic’s bankruptcy exit

Republic Airways reached a deal to continue providing regional flights for its largest customer, completing its third pact with the biggest US carriers and removing an obstacle on the path to exiting bankruptcy. The agreement with American Airlines Group is critical because the world’s largest carrier accounts for about half of Republic’s revenue, the bankrupt regional airline said in a court filing Friday. While the accord will initially reduce Republic’s flying for the airline, there’s an option to increase it with American’s consent. “The comprehensive commercial settlement and claims resolution with American is a major achievement for the debtors that clears the pathway for a successful emergence from Chapter 11,” Republic said in the filing. The agreement must be approved by US Bankruptcy Court Judge Sean Lane. The number of aircraft Republic will operate for American, and options for more in the future, were redacted from the legal filing. American will receive a $250m unsecured bankruptcy claim as part of the settlement, Republic said.<br/>