DALLAS (AP) — Delta Air Lines Inc. will drop a lawsuit against Republic Airways Holdings Inc. and provide $75 million in credit to help Republic rebuild under bankruptcy protection.
As part of the settlement, Republic will stop flying small, 50-seat planes for Delta but continue to operate larger jets that are more economical.
Republic is a key contractor for Delta Connection, which flies between major hub airports and secondary cities. Delta sued Republic last year, claiming that the contractor — which was dealing with a pilot shortage — had canceled some Connection flights.
Delta Vice President Erik Snell said that the settlement will let Delta Connection offer more reliable and consistent service. Republic CEO Bryan Bedford said it would "preserve schedule integrity" for Connection customers.