Delta in Talks To Sell Regional Subsidiaries to SkyWest

Aviation International News » April 2005
January 31, 2007, 7:33 AM

SkyWest COO Brad Rich said last month that Delta Air Lines has “expressed its desire specifically to us” to sell one or both of its regional subsidiaries–Atlantic Southeast Airlines and Comair–to the St. George, Utah-based regional carrier. “I think it’s more than just an interest,” said Rich. “They need to generate some capital somewhere, and this is one way to do it.”

Although he cautioned that he hadn’t performed a detailed cost-benefit evaluation, Rich estimated that SkyWest could lower Delta’s costs by 5 percent. “We think we’re in the best position of anyone to take advantage of this opportunity,” he added, after earlier emphasizing that SkyWest has purposely maintained its liquidity for just such an eventuality.

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