ASA finally Sold to SkyWest Inc.

Airboss

Well-known member
Joined
Sep 19, 2004
Posts
472
Total Time
5000
Delta Air Lines Completes Sale of Atlantic Southeast Airlines to SkyWest, Inc.

ASA, SkyWest Airlines remain leading Delta Connection carriers with new 15-year agreements to continue serving Delta customers

ATLANTA, Sept. 8, 2005 – Delta Air Lines, Inc. (NYSE: DAL) today announced that it has successfully completed the sale of Atlantic Southeast Airlines, Inc. (ASA) to SkyWest, Inc. (Nasdaq: SKYW) for a purchase price of $425 million. As a result of the completion of this transaction, ASA is now a wholly owned subsidiary of SkyWest, Inc. and will continue to operate as a Delta Connection carrier under contract with Delta through 2020.

“The sale of ASA to SkyWest represents another important milestone in Delta’s transformation as it enhances our ability to operate our business as efficiently and cost effectively as we can,” said Delta Chief Executive Officer Gerald Grinstein. “The transaction strengthens our partnership with SkyWest and we look forward to working with ASA and SkyWest Airlines as they continue to serve Delta customers.”

As previously announced, $350 million in cash was payable to Delta at closing, representing $330 million of the purchase price and $20 million relating to certain aircraft financial deposits. An additional $125 million representing $95 million of the purchase price and $30 million relating to certain aircraft financing deposits is payable to Delta upon the earlier of the assumption by Delta of the ASA and SkyWest Airlines Delta Connection agreements should Delta file for reorganization under Chapter 11 or four years after the closing of the transaction. Conversely, SkyWest shall be entitled to retain the $125 million if Delta rejects either the ASA or SkyWest Airlines Delta Connection agreements in a Chapter 11 proceeding prior to the fourth anniversary of the closing of this transaction.

Delta Air Lines is the world’s second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 487 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta’s marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam carriers and other airline partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. For more information, please visit delta.com.

Statements in this news release that are not historical facts, including statements regarding Delta’s estimates, beliefs, expectations, intentions, strategies or projections, may be “forward-looking statements” as defined in the Private efined in the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, beliefs, expectations, intentions, strategies or projections reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to maintain adequate liquidity, the possible imposition of a significant reserve or holdback under our credit card processing agreement, our ability to comply with financial covenants in our loan agreements, our debt and pension plan funding obligations, the cost of aircraft fuel, pilot early retirements, the effect of credit ratings downgrades, interruptions or disruptions in service at one of our hub airports, our increasing dependence on technology in our operations, labor issues, restructurings by competitors, the effects of terrorist attacks and competitive conditions in the airline industry. Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in Delta’s Securities and Exchange Commission filings, including its Form 10-Q, filed with the Commission on August 15, 2005. Caution should be taken not to place undue reliance on Delta’s forward-looking statements, which represent Delta’s views only as of September 8, 2005, and which Delta has no current intention to update.
 

maxcackel

Well-known member
Joined
Nov 26, 2001
Posts
355
Total Time
6000
Can't wait to see all the changes this week. I hope most are good, but shure some will be frustrating.
 

chperplt

Registered User
Joined
Nov 25, 2001
Posts
4,123
Total Time
.
I think it was pretty quick
If you're referring to the sale, that's good news bad news... One of the news channels ran a report saying that these sales normally take 60-90 days to finalize. The so called experts said that Delta would have to quickly rap the sale up before they could file BK.

Now, the sale was finalized pretty quickly... Let's see if they file.

Good luck to all.
 

73belair

Well-known member
Joined
Sep 8, 2003
Posts
288
Total Time
enuf
Is Skywest OO? Like ASA is EV.

I say this because these new load manifest (or whatever they are called now), at some stations, and I've seen them in ATL, look like the ones we have but have spaces for "OO only" and "EV only". These came out pretty quickly after it was announced. Would seem that if thats the case than they had a LOT of this deal ironed out before it was even announced. All the way down to the load manifests.
 

sweptback

Guess that wasn't solid
Joined
Sep 18, 2003
Posts
1,876
Total Time
.
73belair said:
Is Skywest OO? Like ASA is EV.

I say this because these new load manifest (or whatever they are called now), at some stations, and I've seen them in ATL, look like the ones we have but have spaces for "OO only" and "EV only". These came out pretty quickly after it was announced. Would seem that if thats the case than they had a LOT of this deal ironed out before it was even announced. All the way down to the load manifests.
Actually those load manifests have been out forever. I remember getting one over a year ago and looking at it weird wondering what it was.

I think it's a generic DCI load manifest form that had blanks for the ASA and SKYW specific stuff, but I wouldn't read much more into it than a coincidence.
 

bailout

Well-known member
Joined
Nov 28, 2001
Posts
988
Total Time
3.5
Well we supposedly got 20 new destinations because of the CVG reductions.
 

FmrFreightDog

Py-lote
Joined
Jul 31, 2003
Posts
1,238
Total Time
1.2
bailout said:
Well we supposedly got 20 new destinations because of the CVG reductions.
Not that I'm opposed to growth, but that's 20 destinations we can do without. Whatever happens, Comair guys, know that you have our support.
 
Last edited:

jstyle13

Reserve for life!
Joined
Oct 16, 2002
Posts
405
Total Time
5500
I had captian tell me that one of the Chief Pilots said we(ASA) were going to loose additional lines next month ( 40+). I was hoping we'd get some of what we lost for September, back in October. Anyone else heard this?

jj
 

bailout

Well-known member
Joined
Nov 28, 2001
Posts
988
Total Time
3.5
Was in Crew Planning yesterday, they said lines will go down 'a little'. Whatever that means.. But will be higher in Oct.
 

Tomct

Well-known member
Joined
Oct 4, 2004
Posts
2,062
Total Time
11000+
:rolleyes:guys...calm down, the lines are going down due to the two slowest months of the year for air travel. They should increase back to normal levels for NOV and beyond. Atleast that is what crew planning said today!
 
Top