Republic Airways Announces Completed Agreements with Several Key Stakeholders to Restructure its Chautauqua Airlines Subsidiary

  Republic Airways Announces Completed Agreements with Several Key
  Stakeholders to Restructure its Chautauqua Airlines Subsidiary

   Amends Existing E145 Capacity Purchase Agreement with Delta Air Lines to
     Provide for One-Year Term on Seven Additional 50-Seat E145 Aircraft

Business Wire

INDIANAPOLIS -- October 31, 2012

Republic Airways Holdings Inc. (NASDAQ: RJET) today announced it has reached
agreements with several key stakeholders which, combined with other
initiatives taken, including placing idled aircraft back into revenue service,
will mitigate future negative cash flows at its Chautauqua Airlines subsidiary
on average by approximately $45 million annually over the next five years.

“This is an important milestone in our Chautauqua restructuring effort,” said
Bryan Bedford, chairman, president and CEO of Republic Airways. “These
agreements take us about three-quarters of the way to our stated need of $60
million in average annual cash flow improvements at Chautauqua in order to
stabilize and secure its future. We still have approximately two-thirds of our
small jet fleet of 70 aircraft operating under capacity purchase agreements
(CPAs) with less than two years remaining, so we are focused on ensuring both
our labor productivity and long-term maintenance costs of these aircraft
remain competitive.”

The Company also announced it has amended its CPA between Chautauqua Airlines
and Delta Air Lines to provide for the operation of an additional seven E145
aircraft for a period of one year for each aircraft. All seven aircraft are
expected to be placed into service with Delta before the end of 2012. Prior to
the amendment, Chautauqua operated a total of twenty-four E145 aircraft under
a CPA which continues through May 2016.

“The deployment of these seven aircraft, combined with our other recent CPA
activity, means we will have placed all remaining idle 50-seat regional jet
aircraft back into revenue service by the end of 2012. Ensuring our 50-seat
aircraft remain active under agreements with our major airline partners is an
important component of our Chautauqua restructuring effort,” said Bedford.

The Company will have more commentary on these two developments on its third
quarter earnings conference call, which has been rescheduled for Thursday,
Nov. 1, at 1:00 p.m. EDT.

Republic Airways Holdings, based in Indianapolis, Indiana, is an airline
holding company that owns Chautauqua Airlines, Frontier Airlines, Republic
Airlines and Shuttle America, collectively “the airlines.” The airlines offer
scheduled passenger service on nearly 1,500 flights daily to 132 cities in 45
states, The Bahamas, Canada, Costa Rica, Dominican Republic, Jamaica, and
Mexico under pro-rate agreements with Frontier, and through fixed-fee airline
services agreements with five major U.S. airlines. The fixed-fee flights are
operated under an airline partner brand, such as AmericanConnection,
Continental Express, Delta Connection, United Express, and US Airways Express.
The airlines currently employ approximately 10,000 aviation professionals and
operate 278 aircraft.

Contact:

Republic Airways Holdings
Investor Contact:
Margaret Miller, 317-246-2628
or
Media Contact:
Peter Kowalchuk, 317-471-2470