RJET in Hawaii

In the third such deal in which it provides financing to a capacity purchase partner, Republic Airways Holdings is going into the Hawaiian market, as previously reported, in a deal that injects $8 million in direct financing to Mokulele. The company previously provided financing to Frontier and Midwest airlines. Related Story Republic Airways Holdings Inc.’s Shuttle America subsidiary will operate four, 70-seat Embraer 170 jets under a 10-year capacity-purchase agreement beginning Nov. 19. Mokulele Airlines will schedule, price, distribute and promote all of its flights, including those operated by Shuttle America. The move provides new competition to the go! and Hawaiian inter-island operations and offers 70-seat jets to go!’s 50-seat CRJ 200s. The financing package is in the form of a line of credit which can be converted, at Republic’s option, to a maximum 45 percent of Mokulele’s common stock.
Mokulele is purchasing all the capacity of the four jets at predetermined rates and will directly pre-pay or reimburse Republic for industry standard pass-through costs, including fuel. The first two aircraft will launch service November 19 with the second set for a spring introduction. For a complete report see the next issue of Regional Aviation News.