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Old 10-12-2007, 01:41 PM   #1  
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Default SkyWest gets 22 New Rj's, 18 for UAL

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.
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Old 10-12-2007, 02:04 PM   #2  
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Appears that all of the a/c will be 700's.



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Old 10-12-2007, 02:16 PM   #3  
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Appears that all of the a/c will be 700's.



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no, the 4 for delta will be 900s. we have 76 seats in our 900s.
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Old 10-12-2007, 03:06 PM   #4  
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no, the 4 for delta will be 900s. we have 76 seats in our 900s.
Well, actually, they did say that they were in negotiations with both Bombardiar and Embraer.

While I can't imagine them jumping ship to the Jungle Jet for 4 planes, stranger things have happened.
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Old 10-12-2007, 04:52 PM   #5  
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Well, actually, they did say that they were in negotiations with both Bombardiar and Embraer.

While I can't imagine them jumping ship to the Jungle Jet for 4 planes, stranger things have happened.
It's just laughable to think they would get Embraer. They are only trying to put pressure on Bombardier for a better price.
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Old 10-12-2007, 06:49 PM   #6  
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It is possible that we could be bringing on a new fleet, but I find it hard to believe for only four aircraft. I figure we'll use the E190's when we start doing on own branded flying later on down the road! (Joking of course)
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Old 10-12-2007, 06:59 PM   #7  
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So, basically it's a net loss of one aircraft.
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Old 10-12-2007, 07:48 PM   #8  
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So, basically it's a net loss of one aircraft.
No, it's neither a loss of aircraft nor a gain. 18 bros are being permanently retired and replaced with 18 -700s. 5 bros are being reassigned throughout our "at risk" network. 4 -200s are being swapped for 4 -900s or E175s. We'll need a few extra pilots for the replacement aircraft because SKW keeps more crews per jet than they do per brasilia.
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Old 10-13-2007, 04:15 AM   #9  
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Let me ask this;

With the number of 900's & 700's that SKW will have in their fleet, and with negotiations going on for a better contract (forgive me if I'm not using the proper wording),do you think that SKW may be attempting to raise the bar so to speak in terms of base pay?

I'm aware that other regionals, such as Horizon, have higher base pay rates. The cost of living is higher in certain parts of the country as oppose to others.


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Old 10-13-2007, 01:56 PM   #10  
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No, it's neither a loss of aircraft nor a gain. 18 bros are being permanently retired and replaced with 18 -700s. 5 bros are being reassigned throughout our "at risk" network. 4 -200s are being swapped for 4 -900s or E175s. We'll need a few extra pilots for the replacement aircraft because SKW keeps more crews per jet than they do per brasilia.
With the way you described it, you're actually gaining 4 airframes then.

And where are those 4 -200's coming from? I noticed that all the "new" capacity was being added to SKW (per the article) but it doesn't mention if they're going to swap those -200's from SKW or ASA. Is there anything to stop SKW Inc from taking 4 -200's off of ASA and replacing them with 4 -900's on to SKW?
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