Republic Buys Midwest

Republic Airways to Acquire Midwest Airlines

INDIANAPOLIS--(BUSINESS WIRE)--Jun. 23, 2009-- Republic Airways Holdings (NASDAQ: RJET) today announced that it is acquiring Milwaukee-based Midwest Airlines from TPG Capital, a Fort Worth, Texas-based private equity firm. The transaction is subject to customary regulatory approvals and is expected to close in four to six weeks.

Republic will acquire 100% of the equity of Midwest and TPG’s $31 million secured note from Midwest. Consideration will be $6 million in cash and a $25 million, five-year note, which may be converted to RJET stock at $10 per share. In addition, TPG will have the right to nominate a member to the Republic Board of Directors.

“This acquisition will enhance the strategic positioning of Republic Airways,” said Bryan Bedford, chairman, president and CEO of Republic Airways. “Midwest has built a strong brand, a loyal base of customers and dedicated team of employees. We look forward to welcoming them to the Republic family and continuing the Midwest tradition of excellent customer care.”

Bedford added: “As Midwest celebrates its 25th anniversary, I want to make sure I recognize what the employees of Midwest – past and present – have built and sustained through both good and difficult times. This is a great brand built on superior customer service that will continue under new ownership.”

Under the agreement, Midwest will become a wholly owned subsidiary of Republic Airways, with the Midwest brand continuing. Midwest’s Boeing 717s will be replaced with Embraer 190 aircraft, enhancing Midwest’s ability to offer nonstop service to key destinations important to its frequent flyers.

Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,200 flights daily to 101 cities in 37 states, Canada and Mexico through airline services agreements with seven U.S. airlines. All of the airlines’ flights are operated under their airline partner brand, such as AmericanConnection, Continental Express, Delta Connection, United Express, Midwest Connect, Mokulele Airlines and US Airways Express. The airlines currently employ approximately 4,500 aviation professionals and operate 212 regional jets.

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, the risk factors disclosed in the Company’s most recent filing with the Securities and Exchange Commission.



Source: Republic Airways Holdings

Republic Airways Holdings
Carlo Bertolini, 317-484-6069



"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Republic Airways Holdings's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the summary of risk factors contained in our earnings release.

Two-fers goin on in the US airline industry! Wow.

Hmmmm this is interesting...yesterday they buy out Frontier and today Midwest. One has to wonder if the long term plan is to run these companies under their existing names? From a cost perspective that's going to be pricey.

Well there goes the neighborhood...or whatever was left of it. I can see Republic losing contracts over this and things getting very sour. It will be very interesting to see how things play out....

Technically....we are not breaking any of the scope clauses, since all airlines owned by RAH are independent from one another, just owned by same holding company.

Okay I am going to say this, people complaining about this...well guess what, jobs are being saved, but from all the little whiny a** babies out there, what they would rather be unemployed.

Guess what, if another airline bought either of these companies, these names would be gone because all they would have been bought for are the gate spaces and slots and not what the airlines offer the public.

And has far has we know here is, each company will be operated has a subsidiary of RAH, just like RAH/TCF AND CHQ.

I guess people would rather see a AA go in and destroy peoples lives like they did TWA employees, or WN like they did to ATA

And if one more whiny a## Midwest pilot complains, well guess what you voted down the concessions, you could have saved your company and maybe still be flying. RAH has nothing to do with the 717's being returned, that was long in the works, and now getting new EMB 190's....cut in pay or no pay and unemployment only goes so far

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Originally Posted by crj200dispatcher

now getting new EMB 190's....cut in pay or no pay and unemployment only goes so far

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The major problem here is that we now have a regional operating 100 seat airliners. While RAH operating these may not violate any airlines scope, its setting a bad stage for the rest of the industry.

I agree with most of what you say, but WN had nothing to do with ATA's demise.

Yup, you have Republic pilots flying 100-seaters for 40K/year and Delta/Northwest pilots flying 100-seaters at 90K/year. Other airlines through eventualities will be forced into a race to the bottom creating far fewer well-paid jobs for pilots and cheapening the entire profession.

Quote:

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Originally Posted by crj200dispatcher

I guess people would rather see a AA go in and destroy peoples lives like they did TWA employees, or WN like they did to ATA

And if one more whiny a## Midwest pilot complains, well guess what you voted down the concessions, you could have saved your company and maybe still be flying. RAH has nothing to do with the 717's being returned, that was long in the works, and now getting new EMB 190's....cut in pay or no pay and unemployment only goes so far

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Boy, hindsight is a bi-atch, Midwest should have taken that Airtran deal, would have been a whole lot better.

So Republic is cheapening the profession...MMMM

So, Republic, who has lent US Airways millions prior to the America West merger and preventing them from closing down, along with Air Wisconsin, and saved alot of those $90K a year aviation professionals jobs...and by the way we are still loaning US Airways millions to keep those $90k a year pilots flying

Without the millions lent to Midwest by Republic, they would have been gone a long time ago, one more, unemploying overpaid pilots in a already shrinking airline, but yet, that is Republic's fault, and this was happening long before they entered the picture. Are you that naive to think AirTran wanted the Midwest employees, they wanted what they have in MKE to prevent WN from coming in

Frontier, without the millions lent to them would have been gone a long time ago...once again by Republic...and they cancelled our flying contract...grounding 14 aircraft and furloughing employees here...and yet we still lent them millions

Republic has a very respectable reputation as a strong regional carrier with serious potential to become a very serious player in the future should they continue to play their cards right over the next decade. These guys are not some poop-show ooperation that had some extra cash to buy up hurting businesses.

These guys are winning, while others are losing, because of their ability to adapt. Lesser-paid pilots is not the work of companies like Republic, but a necessary evil while we are are recession. They aren't looking to rip off pilots, but rather looking to survive. These same piltos will be ecstatic as years pass and Republic is a powerhouse in the US. I think it's unfair to say they "cheapen the profession", because the economy is cheapening it.

I'm not saying Republic will become the next American or US Airways, but I think you're going to see them grow steadily over the next decade. I'm eager to see what decisions they make and what direction they go in.

It is actually very exciting Phil...history for one is being made, and then 2 great airlines are going to still be flying Midwest and Frontier.

And that is the important thing...2 great airlines are still around and not merged, not bought just to gain assets and people out of work or has many out of work. I could not imagine not seeing the Frontier tails or the beautiful Midwest colors flying

Quote:

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Originally Posted by crj200dispatcher

It is actually very exciting Phil...history for one is being made, and then 2 great airlines are going to still be flying Midwest and Frontier.

And that is the important thing...2 great airlines are still around and not merged, not bought just to gain assets and people out of work or has many out of work. I could not imagine not seeing the Frontier tails or the beautiful Midwest colors flying

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Who's being naive now? Do you really think for one second Republic bought these two airlines out of the goodness of their heart? They were bought for a bargain price as an investment and you can rest assured people will lose their jobs. Midwest has no product identity any longer, there's no reason for Republic not to rebrand them under the Frontier name. This is far from history being made, history was made by airlines like PanAm and TWA...and guess what their gone, so its very easy to imagine the skies without Midwest or Frontier. At the end of the day this is a business and the decisions that are made are made because there should be a positive return, if there's no return for Republic then those animals are dead and the cookie is going to go stale.

Under no way did WN cause ATA to liquidate, if anything WN might have helped ATA live longer by injecting cash and such. Why this was done, probably to ensure FL didn't get the gates at MDW and such. Which is doing business.

I won't say WN is innocent and all smiles, but ATA/WN had quite a healthy relationship, and really was excited for ATA to expand the intl flights and segments and Hawaii too. We were very sad as airline employees to see ATA go.

Alex

The WN statement was a mistake

How will Midwest not have any product identity because Republic bought them? Midwest will operate the way they always have just under a new ownership and under a tighter budget and a new aircraft type that will be cost effective

Why are you people so against this, I mean I can get on here and say I hate all AA people, "One big Happy Family My A**" You took my job at TWA away from me...boo hoo. Or how WN is aggressively going after Midwest in MKE and F9 in DEN, the same way they went after US in PHL, when US was weak. Which I think is BS



T-Bird history has been made, a airline holding company that owns regionals has bought one major and offered a bid on another

I would rather see people working than unemployed and being an enthusiast more airlines in different colors than a monopoly of one