Attorneys with Haynes and Boone, LLP advised American Airlines in its just-announced, 12-year capacity purchase agreement with Republic Airways Holdings, the first large regional jet service deal of its kind in American’s history.
“This was a fast-paced deal that demanded a well-coordinated and intense two-month effort for our team working with the internal legal staff at American,” said Dallas Partner Jan Sharry, who handled the transaction along with Dallas Associate Madison Jones. “The final outcome was worth the effort and leaves American in a great position by strengthening service from American’s hubs and matching right-size aircraft to market demand.”
American’s Associate General Counsel Timothy Skipworth and attorney Steffen Horlacher were instrumental in the effort, Sharry said.
“This is a significant milestone in our company’s history,” said Chuck Schubert, American’s vice president for network planning. “Establishing a large regional jet fleet has long been part of our business plan and this agreement is another example of how we are executing on that plan in a way that benefits our business and our customers.
The agreement will allow the carrier to offer more flights at the right intervals throughout the day in key markets while providing more opportunities for customers to travel in the first class cabin to key business markets.
Under the deal, Republic Airways will acquire 53 Embraer E-175 jets featuring a two-class cabin with 12 First Class seats and 64 seats in the Main Cabin. The aircraft, which be operated by the Republic Airlines subsidiary of Republic Airways Holdings, will phase into operation several aircraft per month beginning in mid-2013.
All 53 aircraft are expected to be in operation by the first quarter of 2015.
