Republic Airways Holding Inc. said it will write off more than $5 million from its investment in Mokulele Airlines.

The Indianapolis-based carrier said it will take a non-cash charge in the fourth quarter as its distances itself from the interisland market.

Last month, Republic agreed to merge Mokulele with Phoenix-based Mesa Air Group's go! airline. The deal left Mesa with a 75 percent ownership stake in the joint venture and Mokulele's investors, which included Republic, with 25 percent.

Republic's $5 million writedown underscores financial toll of the recent fare wars, in which Mokulele, go! and dominant carrier Hawaiian Airlines fought tooth and nail over marketshare in the interisland market.

Shares of Republic dropped 13 cents, or 1.6 percent, to close at $8.04 on the Nasdaq market yesterday. Republic yesterday reported a 6.7 percent decline in its third quarter earnings.

Tags: airline industry, go!, Mesa Air Group, Mokulele Airlines, Republic Airways

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