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SkyWest ATL domicile closing

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if a real one comes out that says the same thing, do I win a prize?

St. George, Utah – SkyWest, Inc.,(“SkyWest”) (NASDAQ:SKYW) announced today that it has entered into an agreement to acquire all of the outstanding stock of Atlantic Southeast Airlines, Inc. (“ASA”), a wholly-owned regional airline subsidiary of Delta Air Lines, Inc. (NYSE: DAL) for a purchase price of $425 million. In addition, SkyWest has agreed to return to Delta $50 million of aircraft deposits. At closing, Delta will receive $350 million in cash, representing $330 million of the purchase price and $20 million relating to the return of certain aircraft financing deposits. An additional $125 million representing $95 million of the purchase price and $30 million relating to the return of 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. SkyWest shall be entitled to retain $125 million if Delta does not affirm the ASA or SkyWest Delta Connection Agreements in a Chapter 11 proceeding prior to the fourth anniversary of the closing of this transaction. The purchase price is also subject to adjustment based on ASA’s levels of cash and working capital as of the closing date. The transaction, which is subject to regulatory reviews and other conditions, is currently expected to close during September 2005.

The proposed transaction would position SkyWest as the holding company of two of the nation’s premier regional airlines, SkyWest Airlines, Inc. (“SkyWest Airlines”) and ASA. The acquisition will result in the creation of the largest U.S. regional airline operating primarily state-of-the-art regional jet aircraft. The combined companies currently fly 372 aircraft, employ approximately 13,400 employees, and are expected to carry an estimated 28 million passengers during 2005. Combined revenues of the two companies are estimated to be approximately $2.5 billion during 2005.

Jerry Atkin, SkyWest’s Chairman and Chief Executive Officer, sees the ASA acquisition as an opportunity to strengthen SkyWest’s partnership with Delta. “Through this acquisition, our company will enter into long-term agreements with initial terms of 15 years with Delta at both ASA and SkyWest Airlines, making SkyWest the most significant regional relationship in the Delta Connection program. Moreover, we believe that ASA is well-positioned to pursue additional code sharing relationships.”

Bradford R. Rich, SkyWest’s Executive Vice President and Chief Financial Officer, anticipates significant benefits as a result of the transaction. “The proposed transaction will provide substantial benefits for SkyWest, including greater geographical presence, diversification and access to the largest airport hub in the world, Atlanta. It also provides us better balance in available seat mile production among our existing major code-sharing partners and utilizes our capital resources more efficiently,” said Rich.

The press release from the 2005 purchase of ASA. I stand corrected.

Nice work, SkyNation.

Spot on announcement especially the quote from Brad Rich, “The acquisition of Mesaba enhances our strategic position and accomplishes several key corporate objectives,” said Bradford R. Rich, SkyWest Executive Vice President, Chief Financial Officer and Treasurer. “We are pleased that the deal is soon to be consummated, but remain focused on the importance of serving our customers and providing a productive work environment for our employees” he continued.
That's exactly what he would say.

MCO domicile-don't see it happening anytime soon.

MSP flying will consist of about 10 cities in Feb; Bis, Bna, Cle, Dlh, Far, Fsd, Mci, Msn, Okc, Rst and a bump up to 21 for the prelim Apr sched, incl Atw, Cos, Cvg, Dsm, Gfk, Lnk, Lse, Oma, Rap, Sdf, Tul, Yqr and Ywg minus mci and msn. Domicile? Yeah, a good chance.
Domicile? Yeah, a good chance.

really? I'll be surprised. I'm guessing lots of 4 and 5 day pairings flowing thru MSP on either end.
SkyWest buying Mesaba might make sense - SkyWest has the cash to do it and wants more 900 growth. I'm sure SkyWest would also like to firm up their long term relationship with Delta like they did with the ASA deal. Delta could always use more cash to finance their interest in Japan Air Lines, by doing this deal. The sale of Mesaba would almost be pure profit to them - Northwest drove them into bankruptcy 4 years ago then bought Mesaba for pennies on the dollar. Now, Mesaba is worth hundreds of millions. Any other conspiracy theories out there?

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