More new DL175’s.. some old 900’s go away
Fourth Quarter Highlights:
- Net income of $67 million, or $1.28 per diluted share - Pre-tax income of $91 million, up from $68 million in Q4 2017 - Secured new flying contract for nine E175 aircraft with Delta Air Lines ("Delta") January 2019 Updates: - Completed previously announced sale of ExpressJet to ManaAir, LLC - Reached an agreement with a lessor on an early leveraged lease buyout on 52 CRJ aircraft - Secured multi-year flying contract extension on 32 CRJ aircraft and 19 E175 aircraft with Delta New flying agreement SkyWest announced today it has secured a new flying contract with Delta to acquire nine new E175s and operate the aircraft for a nine-year term. SkyWest is scheduled to take delivery of five new E175 aircraft during the first half of 2019 and four new E175 aircraft in 2020. SkyWest anticipates removing nine used CRJ900 aircraft from its Delta contract as these nine E175 aircraft are placed into service. Following the removal of service with Delta, SkyWest anticipates returning four CRJ900s to the lessor, and SkyWest has an agreement to lease five CRJ900s to a third party under a six-year term. Flying contract extension SkyWest also announced today that it has agreed to a multi-year extension with Delta on 15 CRJ900 aircraft, 14 CRJ200 aircraft and three CRJ700 aircraft. These 32 aircraft had various contract maturities previously scheduled in 2019 and 2020. The economics associated with these extensions became effective January 1, 2019. Additionally, Delta extended the term on the first 19 E175s under contract with SkyWest from nine years to eleven years. Deliveries under previously announced agreements SkyWest took delivery of eight new E175 aircraft during Q4 2018 under a previously announced agreement with Delta. SkyWest also anticipates taking delivery of three new E175 aircraft in 2021 under a previously announced agreement with Alaska Airlines. SkyWest took delivery of four CRJ900s during Q4 2018, for a total of five CRJ900s during 2018, under a previously announced agreement with Delta for 20 new CRJ900s. Delta will finance the 20 CRJ900 aircraft and SkyWest will operate these aircraft for a nine-year term. SkyWest anticipates taking delivery of the remaining 15 CRJ900s under this agreement between Q1 2019 and mid-2020. SkyWest expects to individually remove 20 CRJ700s from contracts with Delta as each of these new 20 CRJ900s are placed into service. As previously announced, SkyWest has an agreement with American Airlines to place 20 CRJ700s into service by early 2019. January 2019 Updates In January 2019, SkyWest completed the previously announced sale of ExpressJet to ManaAir, LLC. The transaction was completed in two parts, through an asset sale and stock sale, for a total of $76 million. As part of the transaction, SkyWest retained ownership of 30 CRJ700 aircraft that were previously operated by ExpressJet. The majority of these 30 CRJ700 aircraft are currently being utilized under existing SkyWest agreements. SkyWest has also agreed to lease 16 CRJ200s to ExpressJet for up to five years. Also, in January 2019, SkyWest reached an agreement with a lessor on an early leveraged lease buyout on 16 CRJ700s and 36 CRJ200s. SkyWest estimates it will use $110 million in cash during Q1 2019 to acquire these aircraft. SkyWest anticipates that owning these aircraft will provide additional fleet flexibility, reduce tail risk and avoid future lease return costs along with being immediately accretive to earnings. |
Those delta 9 emb175 which base?
With the new delta flying are they taking over compass flying and based in lax any chance those 9 planes will be based in SFO
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Originally Posted by friend
(Post 2753903)
With the new delta flying are they taking over compass flying and based in lax any chance those 9 planes will be based in SFO
|
Originally Posted by friend
(Post 2753903)
With the new delta flying are they taking over compass flying and based in lax any chance those 9 planes will be based in SFO
|
SFO needs to close, along with 2-3 other small CRJ bases, it only makes sense as crj flying winds down.
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Originally Posted by trip
(Post 2753918)
SFO needs to close, along with 2-3 other small CRJ bases, it only makes sense as crj flying winds down.
Will we ever see the majority of the CRJs being nixed though? (5 years?) |
The long term trend has been clear for at least 2 years now.
Passengers like ERJ and loathe CRJ. The “better” product gets deployed in the more competitive / high revenue markets, I.e. the coast(s). This was also the primary reason for LGA. The CRJ go where people don’t have a choice .... APN, PAH, MBS .... |
Originally Posted by Hawker445
(Post 2753931)
..Will we ever see the majority of the CRJs being nixed though? (5 years?)
go away, as we're still awaiting deliveries of some (hopefully). I always wondered how the 175 would fit into some of our CRJ bases... as I begin to see more and more of them flowing through IAH, MSP & DTW. |
Originally Posted by rnfnr
(Post 2753951)
IMO 5 years sounds a tad too soon for the "majority" of the CRJs to
go away, as we're still awaiting deliveries of some (hopefully). I always wondered how the 175 would fit into some of our CRJ bases... as I begin to see more and more of them flowing through IAH, MSP & DTW. I'm curious how that will work for those seat locked in the CRJ? Or will that restriction be taken away when those are eligible for upgrade? |
Originally Posted by Hawker445
(Post 2753959)
Are there any 200's being sent to the graveyard? Obviously there are more 175s being delivered than 700/900s.
I'm curious how that will work for those seat locked in the CRJ? Or will that restriction be taken away when those are eligible for upgrade? |
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