Regionals Update: Delta Sells SkyWest Stake
Delta Air Lines last month sold its equity position in SkyWest Airlines in a block trade of 6.2 million shares worth $125 million. Although the deal returns SkyWest to its former status as a fully independent entity, its code-share agreement with Delta will remain untouched, according to Delta CFO Michele Burns. “Delta has an excellent relationship with our partner SkyWest,” she said. “This transaction in no way changes our operating relationship.” In fact, last month Delta awarded SkyWest new flying out of Dallas-Fort Worth International Airport as part of a network realignment devised to compensate for the major airline’s drop in capacity since September 11. A Delta spokesperson told AIN that the company based its decision solely on its need for a capital infusion, and that it planned the move months before the terrorist attacks occurred.