Republic Airways Holdings Inc. won permission to use the bankruptcy process to return what it says are some of its less attractive airplanes and engines, Bloomberg News reported yesterday. The company can turn over six Embraer SA E145 regional jets and three engines to Citibank NA, an agent to an outstanding loan, Bankruptcy Judge Sean Lane said yesterday. It also obtained permission to reject the lease for a seventh Embraer plane. Citibank said that the aircraft or engines at stake in the current motion are collateral under a revolving credit facility that now has a balance of $23 million. Judge Lane said that Citibank, which had complained that some of the aircraft had been separated from their engines, will have to bring legal claims later if it can’t work out a resolution.
