Associated Press | Indianapolis-based Republic Airways Holdings,
which is still digesting the acquisition of two airlines this year,
announced plans Thursday to buy 40 of the newest generation of
fuel-efficient and environmentally friendly passenger jets for more
than $3 billion.

Also in a quarterly conference call with Wall Street analysts, Republic
executives said they are moving quickly to streamline the brand names
and services of Midwest and Frontier airlines, which were acquired in
2009.

“We will get to a unified brand. I can’t say yet what it will be,” but by Labor Day, passengers will have one reservation system and one set of procedures and policies for Republic’s lines, said Bryan Bedford, chairman, president and CEO of the company.

Despite acquiring the two airlines, Republic’s fourth-quarter earnings report didn’t really shine.

Net income was $20.1 million, or 55 cents a share for the fourth quarter, compared with $19 million, or 56 cents a share, for the same period last year.

Excluding gains on its biggest purchase, Denver-based Frontier, net quarterly income was $900,000, or 3 cents a share, lower than the 6 cents that analysts expected.

Revenues jumped in the quarter to $637.3 million, an increase of nearly 88 percent from the period last year.

And the number of aircraft in Republic’s fleet climbed from about 228 to 287 with the additions of the two airlines in the stable of six companies under Republic Airways Holdings.

But Republic has been on a course in recent months to simplify its fleet and realign many routes for efficiency and competition. Hundreds of employees of the acquired companies were laid off or relocated.

The Lynx Aviation Bombardier Q400 turboprop will be replaced in favor of Embraer 170 and 190 jets operated by Republic. The smaller prop planes were at a competitive disadvantage to the planes of other airlines, company officials said.

In a similar strategy to upgrade the fleet to beat the competition, Republic announced the signing of a firm purchase order for 40 CSeries 300 jetliners to be made by Bombardier Aerospace.

Republic becomes the first major customer in North America for the new aircraft, which will be configured for Republic to carry 138 passengers with five seats in a row.

Republic will pay $3.06 billion for the first 40 planes, with delivery beginning in mid-2015. The deal includes an option for 40 more jetliners. The total cost of the agreement could reach $6.34 billion.

”Republic selected the Bombardier CSeries jetliners because no other aircraft can match the attributes it brings to the market,” Bedford told Wall Street.

The planes are touted by the Canadian manufacturer for their flexibility on long or short trips, which is key for Republic’s varied operations.

Republic Airways Holdings now includes Frontier, Midwest, Chautauqua Airlines, Mokulele Airlines, Shuttle America and Republic Airlines.

Bedford and other Republic executives declined to detail the financing of the new jets except to say the company has enough cash and will not be strapped to complete the deal.

”This plane will be a game-changer. The CSeries aircraft, with Pratt engines, will bring the economics, operational flexibility, reduced environmental impact and passenger comfort,” he said.

”The CSeries aircraft will give us a major competitive cost advantage and complement our future growth and development plans,” he added.