The consolidation of the regional airline industry continued unabated last month, as St. George, Utah-based SkyWest revealed plans to acquire Houston-based ExpressJet. The $133 million transaction will involve a direct purchase by SkyWest's Atlanta-based subsidiary, Atlantic Southeast Airlines (ASA), of all of ExpressJet's common shares for $6.75 each in cash.
St. George, Utah-based SkyWest Airlines is considering investing in a start-up regional airline in Vietnam, the company's CFO, Brad Rich, said yesterday during the company's first-quarter earnings conference call.
Not one to shrink from any challenge, SkyWest president and COO Chip Childs accepted the position of RAA chairman in November knowing full well what likely confronted him.
SkyWest Airlines’ decision to lend United Airlines $80 million in no way signals any particular interest on the part of the St. George, Utah-based regional to help finance the operations of its code-share partners, a point SkyWest executive vice president and CFO Brad Rich clearly wanted to emphasize during the company’s third-quarter earnings conference call last month.
St. George, Utah-based SkyWest has agreed to lend United Airlines $80 million as part of a deal announced today that extends SkyWest Airlines’ code-sharing relationship with UAL and calls for SkyWest subsidiary Atlantic Southeast Airlines to launch United Express service during next year’s first quarter.
While second-quarter traffic posted by some of the largest publicly traded regional airlines in the U.S. followed the prevailing patterns set by their mainline partners, some carriers reacted to the exercise in “resizing” better than others.
Atlantic Southeast Airlines’ unscheduled grounding of 60 CRJ200s on March 31 for engine inspections lowered revenues at parent company SkyWest by $7.6 million during the first quarter. The groundings, which took the airplanes out of service for up to two days, followed an internal audit revealing that ASA might
SkyWest Airlines hasn’t found some magic elixir to help it escape the ravages of the global recession, but as long as it continues to perform to its partners’ contractual standards, the country’s largest regional carrier and the host for this year’s RAA convention can count on a steady revenue stream and a strong enough capital position to weather the economic storm.
Bombardier Learjet 60/Embraer ERJ 145, Chicago, July 21, 2008–The NTSB determined that the probable cause of the near miss of the Electrolux Home Products Learjet and the American Eagle Embraer was the controller’s failure to ensure the appropriate separation between two airplanes operating on runways where flight paths intersect.
Delta Air Lines president Ed Bastian publicly committed to maintaining ownership control over half of the company’s regional flying last month, meaning its Comair subsidiary will remain a subsidiary into the foreseeable future. Comair became a target for divestiture not long after Delta sold its Atlantic Southeast Airlines subsidiary in 2005 to SkyWest.