SkyWest Airlines Announces New Rate Agreement
And Fleet Expansion With United Airlines
ST. GEORGE, Utah, June 10 /PRNewswire/ -- SkyWest Airlines, a subsidiary
of SkyWest, Inc. (Nasdaq: SKYW), announces that United Airlines, the world's
second largest airline has selected SkyWest to significantly expand it's
regional carrier service. The two carriers have signed a Memorandum of
Understanding for a long-term 11-year contract, including a multi-year rate
agreement for United Express contract flying. Under the terms of the
agreement, SkyWest will be reimbursed its operating costs plus a base margin
and performance based incentives, similar to the previous agreement between
the parties.
The agreement calls for SkyWest to operate a fleet of 140 aircraft,
including 55 turbo-prop aircraft currently serving the United Express fleet,
55, 50-seat regional jet aircraft which will be in service by the end of 2003
and 30, 70-seat regional jets that are scheduled to be serving United Express
routes by summer 2005. Additionally, the agreement includes a significant
number of options, which are expected to be a mix of 50 and 70 seat regional
jets and will be determined by United at a later date.
"This new agreement is indicative of a productive and cooperative
relationship between United and SkyWest," said Bradford R Rich, Executive Vice
President, Chief Financial Officer and Treasurer of SkyWest. "We believe we
have helped United achieve their objectives by providing significant
year-over-year rate reductions that were the result of aggressive cost
reduction initiatives at SkyWest. In return, we have an agreement that
enables significant long-term growth at an acceptable return to our
shareholders. That makes it a great deal for both companies."
The Memorandum of Understanding forms the basis upon which SkyWest and
United will develop a definitive agreement which is subject to the approval of
the Board of Directors of both companies and the U.S. Bankruptcy Court.
Currently SkyWest operates more than 650 daily flights to 63 cities as
United Express out of hubs in Denver, Los Angeles, Portland, San Francisco,
and Seattle. The contract will provide SkyWest with new opportunities in
United's Chicago hub as well as expanded service in the Denver market.
SkyWest Airlines is the nation's largest independently operated regional
airline and carried 8.23 million passengers last year. SkyWest operates as
United Express, Delta Connection, and Continental Connection, under marketing
agreements with United Airlines, Delta Air Lines, and Continental Airlines
respectively. SkyWest serves a total of 97 cities in 28 states and
two Canadian provinces and has more than 1,100 daily departures.
This press release and information on SkyWest can be accessed at
www.skywest.com . Statements in this press release which are not purely
historical are 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" and "likely"
also 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 could
differ materially from those anticipated for a number of reasons, including,
among others: developments associated with the bankruptcy proceedings
involving United Airlines, Inc.; ongoing negotiations between SkyWest and its
major partners regarding their code-sharing arrangements; variations in market
and economic conditions; and other unanticipated factors. Risk factors,
cautionary statements and other conditions which could cause actual results to
differ from SkyWest's current expectations are contained in SkyWest's filings
with the Securities and Exchange Commission, including SkyWest's Annual Report
on Form 10-K.
This press release and additional information on SkyWest can be accessed
at www.skywest.com .
SOURCE SkyWest Airlines
-0- 06/10/2003
/CONTACT: Michael J. Kraupp, Vice President Finance and Assistant
Treasurer of SkyWest Airlines, Inc., +1-435-634-3203, or fax, +1-435-634-3205/
/Web site: http://www.skywest.com /
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7339 06/10/2003 07:01 EDT http://www.prnewswire.com
Copyright PR Newswire 2003. All rights reserved.
Tue Jun 10 11:02:38 2003 -GMT- pnac (nPRN6AL034) = 1 11:02
And Fleet Expansion With United Airlines
ST. GEORGE, Utah, June 10 /PRNewswire/ -- SkyWest Airlines, a subsidiary
of SkyWest, Inc. (Nasdaq: SKYW), announces that United Airlines, the world's
second largest airline has selected SkyWest to significantly expand it's
regional carrier service. The two carriers have signed a Memorandum of
Understanding for a long-term 11-year contract, including a multi-year rate
agreement for United Express contract flying. Under the terms of the
agreement, SkyWest will be reimbursed its operating costs plus a base margin
and performance based incentives, similar to the previous agreement between
the parties.
The agreement calls for SkyWest to operate a fleet of 140 aircraft,
including 55 turbo-prop aircraft currently serving the United Express fleet,
55, 50-seat regional jet aircraft which will be in service by the end of 2003
and 30, 70-seat regional jets that are scheduled to be serving United Express
routes by summer 2005. Additionally, the agreement includes a significant
number of options, which are expected to be a mix of 50 and 70 seat regional
jets and will be determined by United at a later date.
"This new agreement is indicative of a productive and cooperative
relationship between United and SkyWest," said Bradford R Rich, Executive Vice
President, Chief Financial Officer and Treasurer of SkyWest. "We believe we
have helped United achieve their objectives by providing significant
year-over-year rate reductions that were the result of aggressive cost
reduction initiatives at SkyWest. In return, we have an agreement that
enables significant long-term growth at an acceptable return to our
shareholders. That makes it a great deal for both companies."
The Memorandum of Understanding forms the basis upon which SkyWest and
United will develop a definitive agreement which is subject to the approval of
the Board of Directors of both companies and the U.S. Bankruptcy Court.
Currently SkyWest operates more than 650 daily flights to 63 cities as
United Express out of hubs in Denver, Los Angeles, Portland, San Francisco,
and Seattle. The contract will provide SkyWest with new opportunities in
United's Chicago hub as well as expanded service in the Denver market.
SkyWest Airlines is the nation's largest independently operated regional
airline and carried 8.23 million passengers last year. SkyWest operates as
United Express, Delta Connection, and Continental Connection, under marketing
agreements with United Airlines, Delta Air Lines, and Continental Airlines
respectively. SkyWest serves a total of 97 cities in 28 states and
two Canadian provinces and has more than 1,100 daily departures.
This press release and information on SkyWest can be accessed at
www.skywest.com . Statements in this press release which are not purely
historical are 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" and "likely"
also 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 could
differ materially from those anticipated for a number of reasons, including,
among others: developments associated with the bankruptcy proceedings
involving United Airlines, Inc.; ongoing negotiations between SkyWest and its
major partners regarding their code-sharing arrangements; variations in market
and economic conditions; and other unanticipated factors. Risk factors,
cautionary statements and other conditions which could cause actual results to
differ from SkyWest's current expectations are contained in SkyWest's filings
with the Securities and Exchange Commission, including SkyWest's Annual Report
on Form 10-K.
This press release and additional information on SkyWest can be accessed
at www.skywest.com .
SOURCE SkyWest Airlines
-0- 06/10/2003
/CONTACT: Michael J. Kraupp, Vice President Finance and Assistant
Treasurer of SkyWest Airlines, Inc., +1-435-634-3203, or fax, +1-435-634-3205/
/Web site: http://www.skywest.com /
-- LATU034 --
7339 06/10/2003 07:01 EDT http://www.prnewswire.com
Copyright PR Newswire 2003. All rights reserved.
Tue Jun 10 11:02:38 2003 -GMT- pnac (nPRN6AL034) = 1 11:02
