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It's official...ASA to operate UAX

JoeMerchant

ASA pilot
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SkyWest, Inc. Announces Funding Arrangement With United Airlines, Extension of United Express Flying and United Express Flying for Atlantic Southeast Airlines

  • Press Release
  • Source: SkyWest, Inc.
  • On 9:00 am EDT, Tuesday October 20, 2009
ST. GEORGE, Utah, Oct. 20 /PRNewswire-FirstCall/ -- SkyWest, Inc. ("SkyWest") (Nasdaq: SKYW - News) announced today that it has reached an agreement with United Air Lines, Inc. ("United") that provides operational funding to United, extends the current code-sharing relationship between SkyWest Airlines, Inc., ("SkyWest Airlines") a wholly-owned subsidiary of SkyWest and creates the opportunity to develop a new relationship with Atlantic Southeast Airlines, Inc. ("ASA"), another wholly-owned subsidiary of SkyWest.
Related Quotes


SymbolPriceChangeSKYW16.870.00



{"s" : "skyw","k" : "c10,l10,p20,t10","o" : "","j" : ""}
Under the terms of the various agreements executed between SkyWest Airlines and United, SkyWest Airlines extended to United a secured term loan in the original principal amount of $80 million. The term loan bears interest at a rate of 11%, with a ten-year amortization period. The term loan is secured by certain ground equipment and airport slot rights held by United. SkyWest Airlines also agreed to defer certain amounts otherwise payable to SkyWest Airlines under the existing United Express Agreement. The maximum deferral amount is $49 million and any amounts so deferred accrue a deferral fee of 8%, payable weekly. United's right to defer such payments is scheduled to terminate in ten years.
The agreements executed between SkyWest Airlines and United extend SkyWest Airlines' existing rights to operate 40 regional jet aircraft under the United Express Agreement until the end of their current lease terms, which is an average of 8.4 years.
ASA will begin operating as a United Express carrier starting in the first quarter of 2010. All of the 13 regional jets are intended to be in operations by May of 2010. SkyWest anticipates that ASA will operate these aircraft under a capacity purchase agreement, for five years, and it is anticipated that they will be compensated in similar fashion to the SkyWest Airlines current agreement.
"This transaction is indicative of a productive and cooperative relationship and partnership between United and SkyWest," said Bradford R. Rich, SkyWest's Executive Vice President and CFO. He continued, "This is an opportunity to utilize the strengths of both companies to create value for both of us."
SkyWest will answer questions and provide more detail regarding these arrangements during its third quarter conference call, which is scheduled for November 5, 2009.
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 207 cities in the United States, Canada, Mexico and the Caribbean, with approximately 2,355 daily departures. This press release and additional information regarding SkyWest, Inc. can be accessed at www.skywest.com.
In addition to historical information, this release contains forward-looking statements. SkyWest may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass SkyWest's beliefs, expectations, hopes or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely" and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statement. Actual results will vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others: the challenges of competing successfully in a highly competitive and rapidly changing industry; developments associated with fluctuations in the economy and the demand for air travel; ongoing negotiations between SkyWest and its major partners regarding their contractual relationships, including the anticipated negotiations regarding the development of a new United Express capacity purchase agreement with ASA; the financial stability of its major partners regarding any impact on the contracts that SkyWest operates under in their behalf; variations in market and economic conditions; the impact of global instability; rapidly fluctuating fuel costs; the degree and nature of competition; potential fuel shortages; the impact of weather-related or other natural disasters on air travel and airline costs; aircraft deliveries; and other unanticipated factors. Risk factors, cautionary statements and other conditions which could cause actual results to differ from management's current expectations are contained in SkyWest's filings with the Securities and Exchange Commission, including the section of SkyWest's Annual Report on Form 10-K, entitled "Risk Factors."
 
Last edited:

JoeMerchant

ASA pilot
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Posts
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Texx said:
It's going to someone else. Sorry.

What happened Texx? Interesting that Skywest is providing funding for United...More tail wagging the dog....
 

EngineOut

Time to Make the Donuts!
Joined
Apr 5, 2003
Posts
246
all 40 for asa?

Read it again, and slower this time :)

It's 13 aircraft for ASA.

SkyWest appears to have paid for the right to keep 40 UAX aircraft in operation for United for the rest of the lease periods.

I read it as:

13 new UAX aircraft for ASA
No new UAX flying (yet) for SkyWest

However, I'd be shocked if the RFP isn't awarded to Inc in some fashion. This almost obligates United to scratch Inc's back.

Congratulations ASA! Hope this helps get your guys back to work!
 

SkyNation

U.S. American
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May 11, 2006
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953
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12:34
welcome to the UEX party, ASA
 

Oakum_Boy

supercalifragilistic
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wonder how senior this is gonna go. Lots of commuters looking to bail out of the ATL.
 

buscap

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Feb 23, 2005
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Five stars so soon?

The Fonz won't like this!!! It waters down the meaning of stars!!
 
Joined
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Sweet you guys, tell your boss I have a discount code on the tail stickers you see in my avatar.
 

LazyLightnin'

Banned
Well-known member
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.
Yep-

Maybe so, probably not. That sack of dog splooge would probably not tell you the truth if his life depended on it.

Personally-I think he is just turning the screws on the pilot group-to get everyone to vote in PBS..... He is pretending to dangle a carrot in front of our dumb asses that he couldn't possibly dangle in reality.

-Has anyone even stopped to consider the implications of upper management revealing important strategic plans to pilots in some recurrent training class? Even before this information is made public? I think it is pretty much illegal-just ask Martha Stewart.

-Hence- I think SH is totally full of it, and he is just trying to get everyone to jump on the PBS train as an act of desparation. If he were privy to such information, he would not be silly enough to share it with some blabbermouth pilots! SH doesn't srtike me as a Mensa member-but he could not possibly be that retarded.

-B.S. Flag going up-Sky High!


Couldn't resist.
 

buscap

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New names for ASA????

I'l start with U-DELTOID EXPRESSION (said with a slight urban lisp)
 

Raoul Duke

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it is not illegal to reveal insider information to employees. It is illegal for those employees to buy or sell securities based on that info.
 
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