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Press Release Source: Northwest Airlines
Northwest Inks Agreement with Republic Airlines for Operation of 46 Embraer 170 Aircraft for Northwest Airlink
Wednesday November 30, 2005, 1:00 pm CT
Eagan,Minn., Nov. 30 /PRNewswire-FirstCall/ -- Northwest Airlines (Nasdaq: NWAC), has reached agreement with Republic Airlines, a subsidiary of Republic Airways Holdings, Inc., for the operation of 46 new 70-passenger Embraer 170 aircraft in the Northwest Airlink route system. Eighteen aircraft will be delivered to Republic in 2006, with twenty-eight additional aircraft joining the fleet in 2007 and 2008. The Embraer 170s scheduled for 2006 will replace current Northwest Airlink aircraft currently in service for Northwest Airlines.
The agreement is subject to execution of the final definitive codeshare agreement with Republic Airlines. In connection with the new agreement, Republic Airways Holdings will issue warrants to Northwest allowing for the purchase of up to 320,000 of its common shares at an exercise price equal to the closing price of RJET common stock, as reported by NASDAQ, on Nov. 30, 2005. The warrant is subject to a number of conditions including the number of aircraft delivered and the continued performance of Northwest over the duration of the service agreement.
"Republic will be a reliable and cost-efficient provider of regional jet service to Northwest," said Doug Steenland, Northwest president and chief executive officer. "We are pleased to replace existing service with roomy and customer-friendly Embraer 170s, which better fit our growth plans for 2006 and 2007 and allow us to promptly respond to changing market conditions. The Embraer 170's extended range and enhanced customer amenities will play an important role in fulfilling network requirements not currently met by Northwest Airlink’s existing fleet of regional jet aircraft."
Republic Airlines will acquire the 46 new aircraft directly from Embraer, requiring no capital investment from Northwest. Northwest plans to deploy the new jets in its domestic route system on routes that cannot be served economically with mainline aircraft or on routes currently served by 50-seat jets that require additional capacity.
"We are very pleased we were able to take a proactive stance towards working with Northwest in their successful restructuring efforts. In doing so we were able to provide Northwest long-term savings in their existing business and also provide a cost-effective solution for new 70-seat Embraer 170 regional jets," said Bryan Bedford, chairman, president and chief executive officer of Republic Airways Holdings. "Our company has an excellent tradition of delivering safe, reliable and cost effective service to our partners - including our proven operation of the Embraer 170. We are excited to add the Embraer 170 to the Northwest Airlink program.”
Bryan Bedford has over 17 years experience in the regional airline industry. He joined Chautauqua Airlines, Republic Airways Holdings primary subsidiary, in July of 1999 as President and CEO. Prior to joining Chautauqua Airlines, he served as President and CEO ofMesaba Holdings, Inc. from 1995 to 1999.
Embraer 170s in the Northwest Connection configuration will feature 68 seats, including an eight-seat first-class cabin that offers customers two-and-one seating with 36-inch seat pitch. The coach cabin will include 60 seats in a two-by-two configuration with 32-inch seat pitch. The aircraft'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. The Embraer 170 is powered by twin, under-wing mounted General Electric CF34-8E engines.
Northwest is the world’s fourth largest airline, and had announced in September that it and certain of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
The company emphasized that it will continue to operate normally to serve customers, honor tickets, fly its competitive schedule and continue the WorldPerks frequent flyer and WorldPerks Visa programs.
“As we have consistently stated, the airline industry has changed permanently,” said Doug Steenland, Northwest president and chief executive officer. “Northwest must significantly lower its costs to compete with other carriers. Many of these are legacy carriers that have already used the bankruptcy process to achieve changes in their cost structures or newer, low-cost carriers which have much lower labor and operating costs than legacy carriers. We believe that our new found relationship with Republic Airways Holdings will continue to aid our company in our strive to save capital and improve service.” “We have developed a plan to restructure Northwest since our Chapter 11 filing and have been implementing that plan,” Steenland added, “this new relationship will ensure our recovery efforts.”
Northwest Airlines is the world’s fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures.
For more information pertaining to Northwest, media inquiries can be directed to Northwest Media Relations at (612) 726-2331 or to Northwest’s Web site at www.nwa.com.
Northwest Inks Agreement with Republic Airlines for Operation of 46 Embraer 170 Aircraft for Northwest Airlink
Wednesday November 30, 2005, 1:00 pm CT
Eagan,Minn., Nov. 30 /PRNewswire-FirstCall/ -- Northwest Airlines (Nasdaq: NWAC), has reached agreement with Republic Airlines, a subsidiary of Republic Airways Holdings, Inc., for the operation of 46 new 70-passenger Embraer 170 aircraft in the Northwest Airlink route system. Eighteen aircraft will be delivered to Republic in 2006, with twenty-eight additional aircraft joining the fleet in 2007 and 2008. The Embraer 170s scheduled for 2006 will replace current Northwest Airlink aircraft currently in service for Northwest Airlines.
The agreement is subject to execution of the final definitive codeshare agreement with Republic Airlines. In connection with the new agreement, Republic Airways Holdings will issue warrants to Northwest allowing for the purchase of up to 320,000 of its common shares at an exercise price equal to the closing price of RJET common stock, as reported by NASDAQ, on Nov. 30, 2005. The warrant is subject to a number of conditions including the number of aircraft delivered and the continued performance of Northwest over the duration of the service agreement.
"Republic will be a reliable and cost-efficient provider of regional jet service to Northwest," said Doug Steenland, Northwest president and chief executive officer. "We are pleased to replace existing service with roomy and customer-friendly Embraer 170s, which better fit our growth plans for 2006 and 2007 and allow us to promptly respond to changing market conditions. The Embraer 170's extended range and enhanced customer amenities will play an important role in fulfilling network requirements not currently met by Northwest Airlink’s existing fleet of regional jet aircraft."
Republic Airlines will acquire the 46 new aircraft directly from Embraer, requiring no capital investment from Northwest. Northwest plans to deploy the new jets in its domestic route system on routes that cannot be served economically with mainline aircraft or on routes currently served by 50-seat jets that require additional capacity.
"We are very pleased we were able to take a proactive stance towards working with Northwest in their successful restructuring efforts. In doing so we were able to provide Northwest long-term savings in their existing business and also provide a cost-effective solution for new 70-seat Embraer 170 regional jets," said Bryan Bedford, chairman, president and chief executive officer of Republic Airways Holdings. "Our company has an excellent tradition of delivering safe, reliable and cost effective service to our partners - including our proven operation of the Embraer 170. We are excited to add the Embraer 170 to the Northwest Airlink program.”
Bryan Bedford has over 17 years experience in the regional airline industry. He joined Chautauqua Airlines, Republic Airways Holdings primary subsidiary, in July of 1999 as President and CEO. Prior to joining Chautauqua Airlines, he served as President and CEO ofMesaba Holdings, Inc. from 1995 to 1999.
Embraer 170s in the Northwest Connection configuration will feature 68 seats, including an eight-seat first-class cabin that offers customers two-and-one seating with 36-inch seat pitch. The coach cabin will include 60 seats in a two-by-two configuration with 32-inch seat pitch. The aircraft'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. The Embraer 170 is powered by twin, under-wing mounted General Electric CF34-8E engines.
Northwest is the world’s fourth largest airline, and had announced in September that it and certain of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
The company emphasized that it will continue to operate normally to serve customers, honor tickets, fly its competitive schedule and continue the WorldPerks frequent flyer and WorldPerks Visa programs.
“As we have consistently stated, the airline industry has changed permanently,” said Doug Steenland, Northwest president and chief executive officer. “Northwest must significantly lower its costs to compete with other carriers. Many of these are legacy carriers that have already used the bankruptcy process to achieve changes in their cost structures or newer, low-cost carriers which have much lower labor and operating costs than legacy carriers. We believe that our new found relationship with Republic Airways Holdings will continue to aid our company in our strive to save capital and improve service.” “We have developed a plan to restructure Northwest since our Chapter 11 filing and have been implementing that plan,” Steenland added, “this new relationship will ensure our recovery efforts.”
Northwest Airlines is the world’s fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures.
For more information pertaining to Northwest, media inquiries can be directed to Northwest Media Relations at (612) 726-2331 or to Northwest’s Web site at www.nwa.com.
