SkyWest, Inc. Announces Plans to Acquire 22 Additional Regional Jet Aircraft
PR NEWSWIRE
Posted: 2007-10-12 13:15:35
ST. GEORGE, Utah, Oct. 12 /PRNewswire-FirstCall/ -- SkyWest, Inc. (Nasdaq: SKYW) and
United Airlines announced today that SkyWest plans to acquire 22 additional regional jet aircraft, 18 of which will fly for United Express, as part of an aircraft transition plan, allowing them to retire 23 EMB-120 30 seat turboprop aircraft and make room for 66 seat regional jet aircraft for United Express flying. Generally, the timing of the turboprop retirements are intended to occur in conjunction with deliveries of new regional jet aircraft in order to ensure a smooth transition in existing markets. Additionally, SkyWest will swap 4 CRJ200 50 seat regional jet aircraft for 4 regional jet aircraft configured with 76 seats under its Delta Connection banner. SkyWest, Inc. currently has not selected a manufacturer for these aircraft, however it will begin discussions with both Bombardier and Embraer as potential suppliers of the aircraft. It is anticipated that deliveries would begin in late 2008 and continue through 2009.
The additional regional jet aircraft will be flown under existing capacity purchase agreements with both United Airlines and
Delta Air Lines and the Company will receive compensation for the additional flying in conjunction with these already existing agreements. The new regional jet aircraft to be added will operate under existing agreements for a term of 10 to 13 years. SkyWest, Inc. has determined that all of the new capacity will be operated by SkyWest Airlines, Inc.
"We are pleased to have been able to work cooperatively with United Airlines and Delta Air Lines management in a well orchestrated opportunity to transition to larger regional jet aircraft and to extend the term on a portion of the fleet flying for both of these major partners," said Bradford R. Rich, EVP and CFO. He continued, "We believe the transaction represents an excellent opportunity for our major partners, our passengers, and for the employees of SkyWest Airlines."
"These new regional jet aircraft will enable us to improve the experience of our customers by providing our explus product which offers Economy Plus and First class seating," said Alexandria Marren, Vice President of Operational Services & United Express for United. "We look forward to our continued partnership with SkyWest as a flying partner for United Express which connects our customers through our gateways to over 855 destinations worldwide."
SkyWest Airlines, based in St. George, Utah, and ASA, based in Atlanta, Georgia are wholly owned subsidiaries of SkyWest, Inc. SkyWest Airlines operates as United Express, Delta Connection and Midwest Connect carriers under contractual agreements with United Airlines, Delta Air Lines and Midwest Airlines. ASA operates as a Delta Connection carrier under a contractual agreement with Delta Air Lines. System-wide, SkyWest, Inc. serves a total of approximately 236 cities in the United States, Canada, Mexico and the Caribbean, with approximately 2,637 daily departures. This press release and additional information regarding SkyWest, Inc. can be accessed at
http://www.skywest.com .
United Airlines (Nasdaq: UAUA) operates more than 3,600* flights a day on United, United Express and Ted to more than 200 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. With key global air rights in the Asia-Pacific region, Europe and Latin America, United is one of the largest international carriers based in the United States. United also is a founding member of Star Alliance, which provides connections for our customers to 855 destinations in 155 countries worldwide. United's 55,000 employees reside in every U.S. state and in many countries around the world. News releases and other information about United can be found at the company's Web site at
http://www.united.com .
*Based on the flight schedule between Jan. 1, 2007 and Dec. 31, 2007.
SOURCE SkyWest, Inc.