Mesa Air Group and Republic Airways agreed to merge in an all-stock deal, the companies said on Monday, in a move that would give them a larger fleet and boost efficiency in regional flying and crew management.
The combined company, which would operate as Republic Airways Holdings Inc., will have a single fleet of about 310 Embraer 170/175 aircraft.
Shares of Phoenix, Arizona-based Mesa, which has a market value of $29.3 million, rose 23.8% in premarket trading.
Terms of the merger deal, expected to close in the late third or early fourth quarter of 2025, were not disclosed.
Republic shareholders would own 88% of the combined company, while Mesa’s would own a minimum of 6% and up to 12% depending on meeting certain pre-closing criteria.
The combined company is expected to remain listed on the Nasdaq under a new ticker symbol “RJET”.
The new entity’s board will have six existing directors from Republic and one independent director from Mesa’s board.
Republic will continue to operate flights for American Airlines, Delta Air Lines, and United Airlines under the existing capacity purchase agreements (CPA), while Mesa will support United Airlines under a new 10-year CPA, as a result of this deal, the companies said.
