ASA and SWA Delta Connection Agreements
As a condition of closing to the transaction, each of SkyWest Airlines and ASA will enter into new5-year Delta Connection operating agreements with Delta. Both Delta Connection agreements will continue to be capacity purchase agreements with both carriers being compensated in a manner substantially similar to their current agreements. In connection with the ASA and SkyWest Airlines contract carrier agreements, Delta or Comair, Inc., a wholly owned subsidiary of Delta, will lease or sublease 40 regional jet aircraft in total to ASA and SkyWest Airlines. If either ASA or SkyWest Airlines terminates its contract carrier agreement as a result of a material breach by Delta, the aircraft leases and subleases to ASA or SkyWest Airlines, as applicable, will terminate at the same time.
As a condition of closing to the transaction, each of SkyWest Airlines and ASA will enter into new5-year Delta Connection operating agreements with Delta. Both Delta Connection agreements will continue to be capacity purchase agreements with both carriers being compensated in a manner substantially similar to their current agreements. In connection with the ASA and SkyWest Airlines contract carrier agreements, Delta or Comair, Inc., a wholly owned subsidiary of Delta, will lease or sublease 40 regional jet aircraft in total to ASA and SkyWest Airlines. If either ASA or SkyWest Airlines terminates its contract carrier agreement as a result of a material breach by Delta, the aircraft leases and subleases to ASA or SkyWest Airlines, as applicable, will terminate at the same time.