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|Republic Airways Holdings Converts Four Embraer 170 Options|
INDIANAPOLIS--(BUSINESS WIRE)--Aug. 16, 2004--Republic Airways Holdings Inc. (Nasdaq:RJET), the parent of Chautauqua Airlines and Republic Airlines announced today it has converted four Embraer 170 options into firm orders. Two aircraft are scheduled to be delivered in December 2004 and one aircraft each in May 2005 and June 2005. All aircraft will be placed into service with United Airlines as part of their United Express program. The total value of the firm order is $100 million. The addition of these four aircraft will increase Republic Airways Holdings fleet of firm Embraer 170's to 22 aircraft. The company has options for an additional 28 Embraer 170 aircraft.
"The addition of these aircraft will allow us to support our growing United Express operation. The 170's unique design allows us to offer our partner a true mainline product but at regional jet operating economics," said Bryan Bedford, chairman, president and CEO of Republic Airways Holdings.
"Republic continues to be a leader in the regional airline industry, this order reflects their continued confidence in our Embraer 170 platform," said Mauricio Botelho, president and CEO of Embraer. Republic Airways Holdings through its airline subsidiaries is the third largest operator of Embraer aircraft worldwide.
In United Express configuration, the EMBRAER 170 will have 70 seats comprised of 6 first class, 16 Economy Plus and 48 economy seats. The 170's unique cross-section provides superior passenger comfort in the form of a larger cabin with maximized cabin width at shoulder level, a wider aisle, larger seats, higher baggage capacity, improved personal space, and increased leg room. Four-abreast seating eliminates undesirable middle seats and facilitates access to both seats and overhead bins. The EMBRAER 170 is powered by twin, under-wing mounted General Electric CF34-8E engines.
Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company. Its principal operating subsidiary, Chautauqua Airlines was recently named 2004 Regional Airline of the Year by Air Transport World and 2003's regional Airline of the Year by Regional Airline World. The airline is celebrating its thirtieth anniversary of scheduled commercial passenger service. Chautauqua Airlines offers scheduled passenger service on 615 flights daily to 70 cities in 31 states, District of Columbia, Canada and the Bahamas through code sharing agreements with four major U.S. airlines.
The all-jet airline currently operates a fleet of 94 Embraer regional jets, including 63 ERJ-145s, 15 ERJ-140s and 16 ERJ-135's. All of its flights are operated under its major airline partner brand, such as AmericanConnection, Delta Connection, United Express and US Airways Express. The airline employs more than 2,100 aviation professionals.
In addition to historical information, this release contains forward-looking statements. Republic Airways may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Republic Airways' beliefs, expectations, hopes or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Republic Airways as of such date. Republic Airways assumes no obligation to update any forward-looking statement. Actual results may vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others, that: Republic Airways is dependent on its code-share relationships with its major partners; terrorist attacks have harmed Republic Airways' business and may harm its business in the future; Republic Airways' code-share agreements with United will be terminated if United does not emerge from bankruptcy; Republic Airline requires an operating certificate before it can commence flying operations; if the financial strength of any of Republic Airways' code-share partners decreases, Republic Airways' financial strength is at risk; Republic Airways' code-share partners may expand their direct operation of regional jets thus limiting the expansion of Republic Airways' relationship with them; any labor disruption or labor strikes would adversely affect Republic Airways' ability to conduct its business; Republic Airways' current growth plans may be materially affected by substantial risks, some of which are outside of Republic Airways' control; Republic Airways' code-share partners may be restricted in increasing the level of business that they conduct with Republic Airways, thereby limiting its growth; Republic Airways' fleet expansion program will require a significant increase in Republic Airways' leverage and the financing it requires may not be available on favorable terms or at all; Republic Airways may be subject to additional liability in connection with its decision to phase out of revenue service its Saab 340 aircraft; Republic Airways depends on Embraer to supply Republic Airways with the aircraft it requires to expand; reduced utilization levels of Republic Airways' aircraft under the fixed-fee agreements would adversely impact its revenues and earnings; increases in Republic Airways' labor costs, which constitute a substantial portion of Republic Airways' total operating costs, will directly impact Republic Airways' earnings; Republic Airways' business could be harmed if Republic Airways loses the services of its key personnel; Republic Airways may experience difficulty finding, training and retaining employees; Republic Airways flies and depends upon Embraer regional jets and Republic Airways' business is at risk if it does not receive timely deliveries of aircraft or if the public negatively perceives Republic Airways' aircraft; Republic Airways is at risk of losses stemming from an accident involving any of its aircraft; Republic Airways will be controlled by Wexford Capital as long as they own or control a majority of its common stock, and they may make decisions with which other stockholders disagree; Republic Airways may have conflicts of interest with Wexford Capital, and because of their controlling ownership, Republic Airways may not be able to resolve these conflicts on an arm's length basis; the airline industry has been subject to a number of strikes which could affect Republic Airways' business; the airline industry is highly competitive; airlines are often affected by certain factors beyond their control, including weather conditions which can affect their operations; the airline industry has recently gone through a period of consolidation and transition; consequently, Republic Airways has fewer potential partners; and the airline industry is heavily regulated.
CONTACT: Republic Airways Holdings Inc.
SOURCE: Republic Airways Holdings Inc.