No ASA For UAL

[McNugent]

Hey, I said I heard it from a guy who knows a guy. You know how that works.

 

[LazyLightnin']

Hey, I said I heard it from a guy who knows a guy. You know how that works.

From Paco? The guy who cuts the grass? I heard the same thing.

 

[bluefly72]

I heard the announcement was coming out on Wednesday...last week.

 

[amcnd]

It will be anounced today!!!

 

[JoeMerchant]

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

• • Buzz up! 0
  • Print

• Companies:
  • SkyWest Inc.

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."

 

[Brasilia Pup]

Ooops, well it looks like all you nay-sayers are WRONG! Eat my shorts!

 

[flyrunner80]

Booyah!!!!

 

[CaribPilot]

Hadouken!

 

[skyman50]

From what I understand,

1) The ASA/UAX (IAD) stuff mentioned, is supposedly unrelated to the RFP that was put out that alot of people are confusing it with.

2) The rumors have died down here and other places too because of the obvious, no news, no announcement, just sit and wait and in a few more days there wont be rumors, it will instead be public knowlege. There's no point in discussing it when no one is "in the know" because of a few reasons, one menitioned earlier: insider trading rules for publically held companies. If people were acting on info thats witheld from shareholders/public, there's trouble.

It has just been communicated by asa's COO. Contract signed with United!!

 

[LazyLightnin']

Bump.

Roll Tide.

 

[HoserASA]

Bump.

Roll Tide.

How 'bout that Crimson Tide!

Hoser
Roll Tide!

lol great news about that UAL stuff too!

 

[FlyMeSWA]

It has just been communicated by asa's COO. Contract signed with United!!

yeah for only 13 out of the 56 requested by ual...that leaves 43 to be accounted for for the rest of the RFP

(dont get me wrong that's great for you guys but clearly more news is to come for another carrier...)

 

[Brasilia Pup]

It's going to someone else. Sorry.

*YAWNNNNNN* You'd better get a new source.

 

[USCtrojan]

I do not believe ASA has lost this whole UAL thing. It would appear this stuff was in the works when ASA agreed to release the 20 50 seaters from the DCI fold......(my attempt at a non - hijack of a thread)

Trojan

Bump. Fight ON!

Trojan

 

[Brasilia Pup]

BUMP. WhhhoooYaaaaaa!

 

[JoeMerchant]

Bump. Fight ON!

Trojan

You da man!:beer:

 

[USCtrojan]

You da man!:beer:

LMAO! Thanx for the props Joe! One thing that keeps getting talked about is our aircraft count. We are going to have a net gain of 4 aircraft as I see it. 10 CRJ900's, + 14 CRJ200's.......Hopefully we can do a good job on the YoNited side and gain more aircraft.

Trojan

 

[JoeMerchant]

LMAO! Thanx for the props Joe! One thing that keeps getting talked about is our aircraft count. We are going to have a net gain of 4 aircraft as I see it. 10 CRJ900's, + 14 CRJ200's.......Hopefully we can do a good job on the YoNited side and gain more aircraft.

Trojan

Yeah but you're leaving out the most important 12 aircraft that left the fleet....Those can never be replaced....

 

[HoserASA]

Yeah but you're leaving out the most important 12 aircraft that left the fleet....Those can never be replaced....

The Bandits???? :smash:

Hoser
Roll Tide!

 

[JoeMerchant]

The Bandits???? :smash:

Hoser
Roll Tide!

"Cap, no strap, clear right"

"Gear down, flaps 100, landing check below the line"