Republic Airways and Mesa Air Merger Creates Second-Largest US Regional Airline, and More

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Mesa Air Merges with Republic Airways to Create America's Second-Largest Regional Airline

Mesa Air Group and Republic Airways announced today they will merge in an all-stock transaction to create one of the leading regional airlines in the United States.

The combined entity, which will retain the Republic Airways Holdings name and trade on NASDAQ under the new ticker symbol "RJET," will maintain a fleet of approximately 310 Embraer E170/175 aircraft with over 1,250 daily departures.

Republic shareholders will own 88% of the new company, while Mesa shareholders will hold between 6-12%, with the merger expected to close in late Q3 or early Q4 of 2025.

Key Points

• The combined airline projects $1.9 billion in annual revenue with pretax margins of 7-9%

• Republic will continue partnerships with American, Delta, and United, while Mesa's operations will support United under a new 10-year capacity purchase agreement

• Mesa will not contribute any debt to the combined entity, and all outstanding Mesa debt obligations will be extinguished

• Bryan Bedford, Republic's CEO (and Trump's nominee for FAA Administrator), will lead the combined company with Republic's executive team

• The merger has been unanimously approved by both boards and awaits regulatory and shareholder approvals

What It Means

This consolidation strengthens the regional airline sector by creating a more financially stable carrier with significant economies of scale.

The merger provides Mesa shareholders with a lifeboat amid financial challenges while giving Republic expanded operational capacity and a stronger position in negotiations with major carriers.

The regional airline industry continues to evolve in response to post-pandemic challenges, including pilot shortages and changing relationships with major airlines.

Other Key Aviation Industry Updates for Today 👇

2. Spirit Airlines Leadership Shakeup Following Bankruptcy Exit

Spirit Airlines CEO Ted Christie resigned effective April 7, 2025, just weeks after the carrier exited Chapter 11 bankruptcy.

Christie, who led the airline since 2019, stepped down along with Chief Commercial Officer Matt Klein. An interim "Office of the President" comprising three executives will manage the airline until a permanent CEO is found.

Spirit recently reduced $795 million in debt and secured $350 million in new investments after facing financial struggles, failed merger attempts, and changing consumer preferences.

3. Taiwan's EVA Air Confirms Purchase of Nine New Airbus Aircraft

Taiwanese carrier EVA Air finalized an order today for 6 A350-1000 widebody and 3 A321neo single-aisle aircraft, completing a commitment announced in March 2025.

This brings the airline's backlog to 24 A350-1000s and 18 A321neos.

The A350-1000 offers 9,700 nautical mile range with 25% less fuel consumption than previous models, while the A321neo delivers 20% fuel savings.

4. Economic Headwinds Force Airlines to Scale Back 2025 Projections

Major U.S. airlines are expected to slash their 2025 forecasts as they report earnings this week amid weakening travel demand.

Delta, American, Southwest, and JetBlue have already cut Q1 projections, citing decreased consumer confidence and economic uncertainty.

Factors include President Trump's tariffs, government spending cuts, and safety concerns.

Airline stocks have plummeted, with Delta down 38%, American 44%, and United 40% this year.

Carriers are reducing flight schedules to protect profit margins as domestic leisure travel and corporate bookings decline, though premium and long-haul travel remain stable.

5. Critical Aircraft Parts Supplier Howmet Warns of Tariff-Related Shipment Suspensions

Howmet Aerospace, a major supplier of aircraft components to Boeing and Airbus, has declared force majeure and warned it may suspend shipments affected by President Trump's recently implemented tariffs.

The Pittsburgh-based company has expressed willingness to negotiate with customers about sharing tariff costs.

This development adds further strain to an already challenged aerospace supply chain as Trump's 10% baseline tariff and higher duties on specific countries took effect over the weekend, triggering market turmoil.

6. Lufthansa Technik Eliminates Middlemen with Direct USM Sales to Airlines

Lufthansa Technik launched today a dedicated used serviceable material (USM) business in the U.S., selling aircraft components directly to airlines instead of through third-party traders.

This Miami-based operation responds to growing demand in a constrained parts market, offering faster and more cost-effective access to certified components.

Parts will be sourced globally but stored primarily at their Fort Lauderdale warehouse.

This initiative complements Lufthansa Technik's other U.S. investments, including a $30 million expansion of their Tulsa facility and a new $3 billion engine service center in Calgary opening in 2027.

7. Amazon Optimizes Air Cargo Operations with Widebody Fleet and Long-Haul Focus

Amazon Air has restructured its operations to focus on larger aircraft and multiple hubs, reducing short-haul flights in favor of long-distance routes.

Tonnage capacity increased 14% over the past year, largely due to Airbus A330-300 freighters that offer 17% more payload capacity than Boeing 767s.

This shift supports Amazon's new third-party air shipping service launched in September, allowing the company to better utilize excess capacity.

The airline now provides equal priority to both Amazon parcels and third-party freight, offering ad hoc bookings, reserved capacity, and charter services in the US, Europe, and India.

8. IATA's New Contactless Travel Directory Connects Airlines to Airport Facial Recognition Systems Worldwide

IATA launched its Contactless Travel Directory to accelerate biometric adoption across airports.

The directory provides airlines with a single reference point to identify biometric touchpoints, check traveler eligibility by nationality and age, and access technical protocols for integration.

This tool eliminates the need for multiple integrations, making contactless travel more accessible.

The system enables passengers to move through processes like bag drop, security, and boarding using facial recognition instead of physical documents.

Digital providers Airware, IDEMIA, and iPassport will demonstrate the technology at this week's Passenger Terminal Expo in Madrid.

9. Boeing Reaches Last-Minute Settlement in Ethiopian Airlines Crash Lawsuits

Boeing settled two lawsuits related to the 2019 Ethiopian Airlines 737 MAX crash just hours before a scheduled civil trial in Chicago. The cases involved Paul Belanger and Capt. Michael Lewis, two of the 157 victims.

Boeing still faces 18 pending cases from other victims, with the next trial set for July.

The company is also confronting a criminal trial in June over allegations of misleading regulators about the 737 MAX.

10. Eagle Air Expands Medical Transport Capabilities with New Airbus Helicopter

Eagle Air Aviation announced today the acquisition of an EC-135 helicopter, expanding their Part 135 charter and organ transportation services.

Based at Harrisburg International Airport, the twin Airbus helicopter accommodates five passengers with a 280-mile range and 148 mph cruise speed.

This addition complements their February purchase of a third Cessna Citation CJ2 jet, which increased organ transplant capacity by 30%.

Eagle Air has positioned itself as a leading Mid-Atlantic organ transportation provider following industry competitor shifts.