Delta Air Lines Receives Final Court Approval for $2.2 billion in Post-Petition Financing
At the hearing Thursday, Delta also received court authorization to assume the Delta Connection agreements between Delta and Atlantic Southeast Airlines (ASA) and SkyWest Airlines, which were entered into in September 2005 in connection with Delta’s sale of ASA to SkyWest Inc. Upon entry of a final order approving the assumption of the Delta Connection agreements, Delta will be entitled to receive an additional $125 million from SkyWest, representing $95 million of the deferred purchase price and $30 million relating to certain aircraft financing deposits. Delta completed the sale of ASA to SkyWest on Sept. 7, 2005, at which time Delta received $350 million, consisting of $330 million of the purchase price and $20 million related to aircraft deposits. Under the Delta Connection agreements, ASA and SkyWest will continue to serve as Delta Connection regional carriers through 2020.
So what does this mean for the other DCI carriers? Is it possible they could lose flying, renegotiate rates etc etc. Just curious about the likes of Mesa and Chautaqua.
At the hearing Thursday, Delta also received court authorization to assume the Delta Connection agreements between Delta and Atlantic Southeast Airlines (ASA) and SkyWest Airlines, which were entered into in September 2005 in connection with Delta’s sale of ASA to SkyWest Inc. Upon entry of a final order approving the assumption of the Delta Connection agreements, Delta will be entitled to receive an additional $125 million from SkyWest, representing $95 million of the deferred purchase price and $30 million relating to certain aircraft financing deposits. Delta completed the sale of ASA to SkyWest on Sept. 7, 2005, at which time Delta received $350 million, consisting of $330 million of the purchase price and $20 million related to aircraft deposits. Under the Delta Connection agreements, ASA and SkyWest will continue to serve as Delta Connection regional carriers through 2020.
So what does this mean for the other DCI carriers? Is it possible they could lose flying, renegotiate rates etc etc. Just curious about the likes of Mesa and Chautaqua.