Republic takes 50% ownership and leadership at Mokulele
Republic Airways Holdings has recapitalised Mokulele Airlines by converting $3.0 million of its $8.0 million loan and injecting $3.0 million of cash in exchange for 50% of Mokulele’s common stock.
The move has led to the Indianapolis-based company taking greater control of the Hawaiian carrier. In February Mokulele had trouble meeting payments to Republic Airways’ subsidiary, Shuttle America, which has been operating Embraer 170s for Mokulele since November 2008.
As a result of the recapitalisation, Mokulele’s CEO Bill Boyer has handed over the role to Scott Durgin, Republic’s VP strategic alliances, in order to lead the airline’s sales and marketing team. Durgin will be interim president and CEO.