The U.S. Bankruptcy Court approved Republic Airways Holdings’ motion, pursuant to Section 365(a) of the Bankruptcy Code and Bankruptcy Rules 6006 and 9019, for authorization to (i) assume codeshare and related agreements, as amended, with United Airlines and (ii) settle claims between United Airlines and the Debtors.
As previously reported, “The relief sought in this motion represents the second major step forward toward reaching the Debtors’ strategic objectives in these proceedings. The Debtors seek, through this Motion, to amend and assume their codeshare agreement with United Airlines, one of the Debtors’ largest Codeshare Partners…which will enhance the Debtors’ profitability beginning immediately upon entry of an order for relief and for the next decade or more. As stated at the outset of these chapter 11 cases, the Debtors’ primary business, operational, and financial objectives are to (i) obtain modified agreements from their Codeshare Partners to reimburse increased costs and allow an orderly restoration of service; (ii) agree to an early return of out-of-favor aircraft (Q400 and ERJ-145) and to resolve any related claims; (iii) streamline their operations by operating a single aircraft type (E170/175) and under a single operating certificate; and (iv) secure additional liquidity to fund future operations and growth. The single most important aspect of the Debtors’ chapter 11 cases – and the gating item to the Debtors’ ability to emerge successfully from bankruptcy as a going concern – is the prompt negotiation and implementation of new agreements with their Codeshare Partners.” R
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