April 7 (Reuters) - Mesa Air Group ( MESA ) and Republic

Airways agreed to merge in an all-stock deal, the companies said

on Monday, in a move that would give them a larger fleet and

boost efficiency in regional flying and crew management.

The combined company, which would operate as Republic

Airways Holdings Inc, will have a single fleet of about 310

Embraer 170/175 aircraft.

Shares of Phoenix, Arizona-based Mesa ( MESA ), which has a market

value of $29.3 million, rose 23.8% in premarket trading.

Terms of the merger deal, expected to close in the late

third or early fourth quarter of 2025, were not disclosed.

Republic shareholders would own 88% of the combined company,

while Mesa's ( MESA ) would own a minimum of 6% and up to 12% depending

on meeting certain pre-closing criteria.

The combined company is expected to remain listed on the

Nasdaq under a new ticker symbol "RJET".

The new entity's board will have six existing directors from

Republic and one independent director from Mesa's ( MESA ) board.

Republic will continue to operate flights for American

Airlines ( AAL ), Delta Air Lines ( DAL ), and United Airlines

under the existing capacity purchase agreements (CPA),

while Mesa ( MESA ) will support United Airlines under a new 10-year CPA,

as a result of this deal, the companies said.