Announced this Tuesday, on November 25, Republic Airways and Mesa Airlines completed a merger that saw Republic become the United States’ and the world’s largest operator of Embraer E-Jet aircraft. The fleet total now comes to 310 regional jets that will service roughly 1,300 daily departures.

Republic is continuing to support American Airlines, Delta Air Lines, and United Airlines while integrating the Mesa operations under United in a new 10-year contract. The capacity purchase agreement integrates the two operations, which will gradually transition to a single organization.

A United Jet Armada

Republic and Mesa will maintain parallel operations while the combined company works to consolidate the two airlines to operate as a single carrier. More than 8,000 aviation professionals across the two companies will be combined into reorganized positions. Republic is targeting continued growth and development in the wake of the historic merger with a long-term strategy.

Republic and Mesa are two of the most well-known and established regional airline operations in America. Each carrier brings its own culture of aviation excellence and professional pride to the new group under one roof. Republic Airways was founded in 1974, and Mesa stood up shortly after in 1980. Today, its fleet is exclusively composed of Embraer 170/175 aircraft. The combined company will trade under the ticker RJET on the NASDAQ Global Select Market. David Grizzle, CEO of Republic Airways, said:

“This merger establishes a combined company with a common mission to provide safe, clean, and reliable service to connect people and communities across America.”

The New Republic

The Republic Airways network includes more than 100 cities in the US, Canada, the Caribbean, and Mexico. The new, post-merger company is the second-largest regional airline in the US, just behind the industry leader, SkyWest Airlines. The remaining regional carriers of Envoy Air, PSA Airlines, and Piedmont Airlines operate smaller fleets, though collectively form a large part of American Eagle.

The Republic network centers around the major hubs of its partners, with a concentration in the Northeast and Mid-Atlantic regions. Mesa provides extensive feeder service to United’s hubs, particularly in Houston and Washington, DC. The combined network operates from 12 crew bases.

The two networks are complementary, with Mesa’s existing strong presence in Texas and DC. United will be enhanced with Republic’s extensive operations in the Northeast for all three major partner airlines that it supports. The merger provides a stronger capital base and financial stability. The bolstered financial position should allow for investments and sustained profitability, supporting continued smooth operations as well as long-term growth.

How SkyWest Stacks Up

SkyWest remains the undisputed largest regional airline in the US. It is often ranked in the top 10 airlines overall in the US by passenger volume, not just in comparison to regional airlines. It operates a significantly larger fleet of over 500 aircraft and is unique in partnering with all four major airlines: United, Delta, American, and Alaska. Unlike Republic, SkyWest has a fleet with a variety of Bombardier CRJ jet models.

SkyWest supports around 2,500 daily departures with around 245 cities in its portfolio. The majority of the destinations that SkyWest serves are in the Western and Central United States, differing from the Republic network and strategy. The merger between Republic and Mesa will create a line in the sand between two major independent players in the regional jet market. Republic will essentially be the go-to regional jet operator for every smaller field east of the Mississippi River.

Lending credence to Republic’s recent growth and progress are the overall positive reviews from customers after experiencing the Embraer E175. Most flyers consider the aircraft to be much more spacious and comfortable compared to the Bombardier CRJ jets, which are still the primary platform used by SkyWest. It would be a significant undertaking for Republic to challenge SkyWest for dominance in the regional jet market, but in the long view, it is by no means impossible.