Republic Airways Holdings Inc. reached a deal to continue providing regional flights for its largest customer, completing its third pact with the biggest U.S. carriers and removing an obstacle on the path to exiting bankruptcy, Bloomberg News reported on Friday. The agreement with American Airlines Group Inc. is critical because the world’s largest carrier accounts for about half of Republic’s revenue, the bankrupt regional airline said in a court filing on Friday. While the accord will initially reduce Republic’s flying for the airline, there’s an option to increase it with American’s consent. “The comprehensive commercial settlement and claims resolution with American is a major achievement for the debtors that clears the pathway for a successful emergence from chapter 11,” Republic said in the filing. The agreement must be approved by Bankruptcy Court Judge Sean Lane.
