Republic Airways and Mesa Airlines announced a plan to merge and operate a company with a combined 310 Embraer E-175 aircraft and representing $1.9 billion in annual revenue. Currently, Republic operates regional flights for American, United and Delta while Mesa is down to a contract only to fly for United. Under the deal, Republic shareholders will have 88% of the carrier and Mesa shareholders get 6% – 12%.
Republic Airways Embraer E-175 Operating For American Airlines
Republic says they’ll use a single operating certificate “with over 1,250 daily departures, across both airlines’ existing flying networks and will operate within Mesa’s and Republic’s current basing structures and routes.” That means combining workforces – including pilot seniority lists. Pilots at the two carriers are represented by different unions. That may be the messiest piece of this.
Republic is well-run. I’ve had some of the best onboard service from Republic crew. Mesa has been a mess, and seemingly dying. This deal should have no problem passing antitrust muster. While it represents consolidation in the regional carrier space, it’s not clear that Mesa survives on its own. Republic’s CEO has also been nominated by the President to lead the FAA. Will the DOJ really go after him?
The Phoenix-based carrier is down to 60 70- and 76-seat Embraer E-175s, and partnering only with United out of Houston and Washington Dulles. In 2024 it operated an average of 279 flights per day.
Republic's May 2025 scheduled route map (blue) and Mesa's (green).
Source: Cirium Diio pic.twitter.com/KaevWogxRp
— Ryan Ewing (@FlyingHighRyan) April 7, 2025
Mesa had been losing $5 million a month flying for American Airlines. American claimed they stopped working with Mesa due to their reliability problems two years ago, while in fact they offered Mesa a contract extension. American didn’t want to spend a dollar more than they needed to on regional feed.
.@MesaAirlines Chairman and CEO Jonathan Ornstein on @YahooFinance responding to @AmericanAir CFO Derek Kerr's statement last weekend. pic.twitter.com/339SCZb3gf
— Ross Feinstein (@RossFeinstein) December 25, 2022
Mesa has been in, or on the verge of, bankrupty many times. It has run by CEO Jonathan Ornstein since 1998. Previously he served as head of Europe’s Virgin Express and Continental Express, and ran the Westair division of Mesa (United Express on the West Coast). He also had a sketchy past working in financial services.
The regional airline previously operated as US Airways Express and America West Express and under a number of other brands, including its own intra-island Hawaiian airline (go!) and Kunpeng Airlines in a joint venture with China’s Shenzhen Airlines.
Republic, which spent parts of 2016 and 2017 in Chapter 11 bankruptcy, used to own Frontier Airlines (which it sold to Indigo Partners) and used to operate the Chautauqua Airlines and Shuttle America brands before consolidating them into the Republic brand.
That’s bold of them to announce this with all the macro-level volatility. Perhaps, Mesa (and Ornstein) simply needed ‘an out,’ and fast. Oof, dire straits. Or, maybe it’s just ‘money for nothing.’
And the chicks for free?
@Greggb57 — That’s the way you do it. (I want my MTV.)
I have to wonder if this transaction isn’t the result of Scott Kirby’s influence.
I’d be happy to see JO get $0! Couldn’t happen to a better guy!