Bankruptcy court approves Gol's settlement agreements with Boeing
April 09, 2025
Gol has concluded what it says were "extensive" negotiations with Boeing in connection with the Chapter 11 proceedings initiated by the Brazilian carrier before the US Bankruptcy Court for the Southern District of New York. The bankruptcy court on 7 April approved the execution by Gol and its subsidiaries of a series of agreements with Boeing. Gol – which filed for Chapter 11 bankruptcy protection in January 2024, and has targeted May 2025 for emergence from the reorganisation process – has as of 7 April orders for 91 737 Max aircraft, it says. "The conclusion of the negotiations with Boeing represents another milestone in Gol's overall restructuring objectives," the carrier adds. "Together with the previously disclosed tax settlement and in line with the restructuring plan outlined in the Chapter 11 proceedings, the agreements and tax settlement will enable an increase to a minimum of $235 million (any further increase is dependent upon negotiations with other creditors) in capital distribution to general unsecured creditors."
US regionals Mesa and Republic agree to merge
April 08, 2025
US regional operators Mesa Air Group and Republic Airways Holdings have agreed to merge in an all-stock deal that will see the combined company operate a 310-strong fleet of Embraer 170 and 175 jets. Phoenix, Arizona-based Mesa and Indiana-based Republic will operate under the Republic Airways Holdings brand once the transaction has closed, which is expected to happen in the third or fourth quarter of 2025, subject to regulatory approvals. The combined airline will operate a "single fleet" of about 310 Embraer 170 and 175 regional jets. Fleet data shows that Republic Airways has 177 in-service E175s plus 40 on order, as well as 31 in-service E170s. Mesa's fleet includes 60 in-service E175s. It also has 100 battery-electric-powered Heart Aerospace ES-30s on order. Mesa and Republic intend to continue operating under their existing US Federal Aviation Administration operating certificates until a single operating certificate is secured. Republic will continue to operate regional flights on behalf of American Airlines, Delta Air Lines and United Airlines under its existing capacity purchase agreements (CPAs), while Mesa will support United under a new 10-year CPA. The merged company will be led by Republic's executive leadership team. Republic shareholders will own 88% of the company's common shares while Mesa's shareholders will own a minimum of 6% and up to 12% of the entity. "We're thrilled to combine the Republic and Mesa teams to create one of the world's leading Embraer jet operators," states Republic chief executive Bryan Bedford. "With this combination, we are establishing a single, well-capitalised, public company that will benefit from the deep expertise of Republic and Mesa associates, creating value for all stakeholders well into the future." Mesa chief executive Jonathan Ornstein adds that the deal "represents the best outcome for our shareholders, employees and all of our stakeholders". Mesa and Republic expect the combined company to produce revenues of $1.9 billion and adjusted EBITDA of more than $320 million. Mesa "will not contribute any debt" to the merged entity, according to the joint statement. Post-merger cash and debt balances are forecast to be $285 million and $1.1 billion, respectively.
Spirit Airlines on lookout for new CEO as Christie steps down
April 08, 2025
Spirit Airlines chief executive Ted Christie has stepped down from his role, less than a month after the US carrier emerged from Chapter 11 bankruptcy protection. "The board of directors is in the process of appointing a permanent replacement," Spirit states. The Florida-based carrier has established an "office of the president" to carry out Christie’s duties until a permanent chief executive is hired. This will see his responsibilities split between the airline's chief operating officer John Bendoraitis, its chief financial officer Fred Cromer and Thomas Canfield, who serves as Spirit's general counsel and secretary. The airline says that it has entered into a "separation and release" agreement with Christie, under which he will receive severance payments in accordance with a 2017 executive severance plan. These payments are contingent upon "Mr Christie's agreement to a standard release of claims and continued compliance with applicable restrictive covenants". Christie joined Spirit in 2012 and has been chief executive since 2019. He has held previous positions at Pinnacle Airlines and Frontier Airlines. The carrier's chief commercial officer, Matthew Klein, has also stepped down from his role with immediate effect. He has been replaced by senior vice-president and chief transformation officer Rana Ghosh. Spirit filed for Chapter 11 bankruptcy protection in November 2024. On 11 February 2025, Spirit reiterated its intention not to merge with Frontier Airlines after the latest proposal and counter-proposal exchanged between the US carriers failed to culminate in an agreement. Spirit's plan of reorganisation under Chapter 11 bankruptcy from the US Bankruptcy Court for the Southern District of New York was confirmed by the court on 12 February. The plan was made effective on 12 March, the day that Spirit emerged from Chapter 11 with a reconstituted board of directors.