Haynes and Boone partner Janice V. Sharry of Dallas helped American Airlines Inc. negotiate a 12-year capacity purchase agreement (CAP) with Republic Airways Holdings Inc. of Indianapolis.

The agreement, announced on Jan. 24, calls for Republic Airways subsidiary Republic Airlines to operate 53 Embracer E175 aircraft for American Airlines under the American Eagle brand. The service will begin to roll out in June and is expected to be fully launched by 2015.

The CAP is subject to approval by the federal bankruptcy court in the Southern District of New York presiding over American Airlines’ bankruptcy.

American and its Fort Worth-based parent company, AMR Corp., filed a Chapter 11 in November 2011.

Sharry, who has worked on several CAPs and other commercial contracts for American over the years, says the firm got a call in early November to work on the project, and negotiations began right before Thanksgiving.

The crunch time on the deal came after the first of the year, she says.

“We worked very intensely,” she says, noting that CAPs are very complicated transactions.

Sharry worked on the deal with Dallas associate Madison Jones and in-house lawyers at American Airlines: Associate General Counsel Timothy Skipworth and attorney Steffen Horlacher.

Sharry says Republic Airways handled the deal in-house, with a team led by Vice President and General Counsel Ethan Blank.

A spokesman for Republic Airways did not respond to an emailed request for names of others on the in-house team.

In a press release announcing the deal, American Airlines wrote that the contract is significant because the regional aircraft, which seat 76 passengers in a two-class cabin, are larger than American Eagle has offered in the past. American Airlines wrote that a new contract with its pilots union paved the way for the transaction.

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