Republic Airways Merges with Mesa to Dominate E-Jet Market

Republic Airways has officially become the world’s largest operator of Embraer E-Jet aircraft following its merger with Mesa Airlines, announced on November 25, 2023. The combined fleet now totals **310 regional jets**, which will facilitate approximately **1,300 daily departures**. This strategic move positions Republic not only as a key player in the United States but also on the global stage.

The new entity will continue to support major airlines, including **American Airlines**, **Delta Air Lines**, and **United Airlines**, while integrating Mesa’s operations under a **10-year capacity purchase agreement**. This agreement outlines a gradual transition toward a unified organization, with Republic and Mesa maintaining parallel operations during the consolidation process. The merger will affect over **8,000 aviation professionals**, who will be reassigned to newly organized roles as the two companies strive for a seamless integration.

Strengthening Regional Operations

Founded in **1974**, Republic Airways and Mesa Airlines, established in **1980**, have built reputations for excellence in regional air travel. With both carriers now under one umbrella, the new organization will operate under the ticker **RJET** on the **NASDAQ Global Select Market**.

David Grizzle, the CEO of Republic Airways, stated, “This merger establishes a combined company with a common mission to provide safe, clean, and reliable service to connect people and communities across America.” The newly formed Republic network will serve over **100 cities** across the US, Canada, the Caribbean, and Mexico, making it the second-largest regional airline in the US, trailing only **SkyWest Airlines**.

The merger brings together complementary strengths, with Mesa’s established presence in Texas and Washington, D.C., enhancing Republic’s extensive operations in the Northeast. As both airlines operate from a total of **12 crew bases**, the partnership is expected to provide a more robust service to major airline hubs, particularly in the Northeast and Mid-Atlantic regions.

Financial Stability and Future Growth

The newly combined company is poised for financial stability, which is crucial for long-term growth and investments. The merger strengthens Republic’s capital base and is expected to support sustained profitability, ensuring smooth operations. This strategic alignment will also help the airline adapt to changing market demands and enhance service quality.

In comparison, SkyWest Airlines remains the largest regional airline in the United States, operating a fleet of over **500 aircraft** and facilitating around **2,500 daily departures**. While SkyWest partners with all four major US airlines—United, Delta, American, and Alaska—Republic will focus on the eastern markets, establishing itself as a primary operator in regions east of the Mississippi River.

Customer reviews indicate a positive reception for the Embraer E175, with many passengers finding it more spacious and comfortable than the Bombardier CRJ jets predominantly used by SkyWest. While challenging SkyWest for market share will be no small feat, the merger positions Republic Airways for significant growth in the regional jet market, making its future prospects increasingly promising.