The Main Squawk: Republic to absorb Mesa by the end of the year
Regional airlines Republic and Mesa announced an agreement to combine operations last week to form what they’re calling “America’s Regional Airline of Choice.” The all-stock transaction is expected to be complete by the end of the year, pending agreements with labor groups, creditors, and the like.
The deal is being framed as a merger and carries a unique set of benefits for each airline. For Mesa, which has been struggling financially since losing American as a customer in 2023, combining operations with Republic is expected to resolve cash flow issues. For Republic, gaining access to Mesa’s operation may finally make dreams of a Houston-IAH base come true.
Source: Great Circle Mapper
This will be the first true merger for Republic in its more than fifty year history. Although the deal was put together by Republic President and CEO Bryan Bedford and his counterpart at Mesa, Mr. Bedford is expected to depart Republic soon and become the next Administrator of the FAA, pending confirmation by the U.S. Senate. It is not clear who will lead the merger when Mr. Bedford leaves the Company.
Delta CEO Ed Bastian is having buyer’s remorse with the Trump administration regarding the effect of tariffs on the traveling public’s pocketbooks. In a conversation with CNBC on Thursday, Mr. Bastian said the Atlanta-based airline was preparing for a recession, but couldn’t share an updated revenue forecast for the year due to “economic uncertainty.”
The Airline revealed lackluster earnings last week for Q1 2025, with virtually zero revenue growth and a disappointing outlook on corporate and leisure travel. It also said it would be postponing deliveries of nearly two dozen Airbus A350 aircraft until it could better assess the tariff situation. The deliveries were originally scheduled to be staggered throughout 2026.
Mr. Bastian previously referred to President Trump’s administration as a “breath of fresh air” for the airline industry when the election wrapped up last November. He made comments that the administration was making promises to reverse some of the government overreach seen over the course of the Biden administration.
But now, the veteran CEO has anything but praise for the current administration, telling CNBC reporter Phil LeBeau that President Trump’s tactics are “the wrong approach” for U.S. growth.
Boeing continues to struggle to increase production of its 737 MAX assembly line according to a report by The Air Current. Under the previous administration, the then-FAA Administrator Mike Whitaker capped Boeing’s production of the jet to thirty-eight planes per month, which even he said would be a difficult target for the Company to reach in the near future. And according to The Air Current, it seems like he was right.
People familiar with the production process reportedly told The Air Current that Boeing successfully ramped up wing production in February to seventy-six per month—the number it needs to meet to develop thirty-eight planes per month. But almost immediately after reaching that target, the number of jobs behind schedule spiked, forcing the manufacturer to pull back production by almost 40%.
The jobs that were falling behind schedule had to do with “wing systems installation issues,” which could range from anything from flight control systems to anti-ice systems to the rigging of the wing itself. Executives at suppliers have said that while the overall production process is making definitive progress, increasing the quantity of aircraft while maintaining quality is a fragile process.
In its exclusive report, The Air Current points out that Boeing hasn’t produced planes to the tune of thirty-eight per month in over five years.
Spirit CEO Ted Christie is departing the recently resurrected airline with no replacement. The fate of the carrier is now tied to its bankruptcy plan and a committee of three brains who will almost certainly know how to get the Company back on its feet. (Did you detect the sarcasm?)
Gary Leff from View from the Wing says it best: even United was able to wrangle in a new CEO at the last minute when things went wrong with then-CEO Jeff Smisek in 2015.
And it isn’t just Mr. Christie who’s headed for the exit: Spirit’s Chief Commercial Officer Matt Klein is leaving too. Mr. Klein will be replaced by the Company’s Chief Transformation Officer Rana Ghosh, who will eventually resign and be replaced by Chairman and soon-to-be Chief Resignation Officer Robert Milton.
Allegiant began expanding the footprint of its Boeing 737 MAX 8 operation last month with schedules for the jet published through October 2025. Of the over 130 destinations the Airline currently serves, the MAX 8 will see almost half of the stations the Company serves.
The Las Vegas-based airline anticipates delivery of another six aircraft by the end of the year. The deliveries are planned to replace some of its aging Airbus A320s, which are slated to be retired by the end of the year.
Air India is planning to operate an additional flight on Fridays between New York-JFK and Delhi between April 18 and June 13.
Avelo will begin operating deportation flights under the supervision of the U.S. Immigration and Customs Enforcement.
Breeze is extending the schedule for its Embraer 195 operation through the end of next week.
Cranky is watching Chicago like it’s a canary in a coalmine.
Delta officially opened its much-anticipated SkyClub in Atlanta (Concourse D). Tom Brady, who was tasked with celebrating the launch, couldn’t help but point and laugh at the people who thought they actually had a chance at making inside before their flight.
Lufthansa is tentatively downsizing its Airbus A330 operation for Summer 2026.
Ryanair banned a passenger for buying $9 of snacks with a credit card that wouldn’t go through.
Southwest is expanding its Q4 2025 schedule by adding three routes from Los Angeles and San Diego, and two one-time routes from Nashville around Thanksgiving.
Viasat and Telesat are apparently teaming up to expand their satellite networks to bolster in-flight Wi-Fi. Carriers that aren’t part of Starlink’s exclusive agreement with United rejoice.
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