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Republic and Mesa Merge to Form Second-Largest U.S. Regional Airline

Republic and Mesa Merge to Form Second-Largest U.S. Regional Airline
Republic Airways and Mesa Air have completed their all-stock merger, creating a new Republic Airways Holdings that ranks as the second-largest regional airline in the United States by fleet size and daily departures, second only to SkyWest. The merger, initially announced in April 2025 and approved by Mesa shareholders on November 17, officially closed on November 25.
Details of the Merger and Operational Scope
Under the terms of the agreement, Republic shareholders will own approximately 88% of the combined company, while Mesa shareholders will hold between 6% and 12%, contingent on the final settlement of Mesa’s pre-closing obligations. The newly formed group operates the world’s largest Embraer regional jet fleet, comprising 310 E-Jets (Embraer 170/175 models). It offers more than 1,300 daily departures to over 100 destinations across the United States, Canada, the Caribbean, and Mexico. The combined workforce exceeds 8,000 employees.
David Grizzle, CEO of Republic Airways, emphasized the strategic significance of the merger, stating, “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 transaction will create value for all of our stakeholders and strengthen the regional aviation industry.” He further noted that Republic is returning to the public markets as a well-capitalized airline with a strong strategic plan and a capable workforce, poised for future opportunities.
Republic Airways will continue operating under capacity purchase agreements with American Airlines, Delta Air Lines, and United Airlines. Mesa Airlines will operate exclusively for United under a new 10-year capacity purchase agreement linked to the merger. Both airlines will maintain parallel operations initially as the group undertakes the complex process of integrating systems, fleets, and operating certificates into a unified carrier platform.
Challenges and Market Response
Despite the optimistic outlook, the merger faces several challenges. Regulatory scrutiny from the Department of Transportation and the Federal Aviation Administration is anticipated as the integration advances. The consolidation of operational systems and alignment of labor groups may also present difficulties, with potential risks of labor disputes as the companies work to unify their workforces and procedures.
Market reaction to the merger has been largely positive, with Republic’s stock price rising following the announcement, reflecting investor confidence in the combined airline’s prospects. Competitors, particularly SkyWest and other regional carriers, are expected to adjust their strategies in response to the increased competitive pressure posed by the newly merged entity.
As Republic and Mesa proceed with integration, the aviation industry will closely monitor how the new airline reshapes the regional aviation landscape across North America.

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