SkyWest forges $4.2 billion agreement for 100 MRJs

By Christine Boynton | July 11, 2012


SkyWest Inc. on Wednesday signed an agreement in principle with Mitsubishi Aircraft Corp. for 100 Mitsubishi Regional Jets (MRJ). The deal is valued at $4.2 billion at list prices, and Mitsubishi president Hideo Egawa said he is “hoping to conclude a firm agreement as soon as possible maybe within a few weeks.”

Deliveries are planned to begin in 2017 and conclude by the end of 2020.

“SkyWest remains committed to providing innovative leadership within the regional airline industry,” SkyWest president Bradford Rich said. “This agreement is the product of a cooperative partnership that we are confident will create long-term value for both parties.”

Utah-based SkyWest is a holding company for SkyWest Airlines and ExpressJet Airlines and operates as United Airlines, Alaska Airlines, Delta Air Lines and US Airways. It operates a fleet of 725 regional aircraft.

The MRJ has so far received 70 firm orders, which would jump to 170 following a completion of a firm contract with SkyWest.

“We’re working very closely together on this program to ensure success,” Pratt and Whitney president commercial engines Todd Kallman told journalists at the Farnborough Airshow. “Testing on the PW1200G ... is going very well.” It yesterday announced the engine had completed its first flight test program (ATW Daily News, July 10). “The engine program is on track for certification next year,” Kallman said.