A last-ditch attempt to stave off bankruptcy by Delta Air Lines has seen St. George, Utah-based SkyWest agree to buy Delta Connection subsidiary Atlantic Southeast Airlines (ASA). Scheduled for completion this month, the $425 million deal will make SkyWest by far the largest regional airline in the U.S., giving it a combined fleet of 372 airplanes, projected annual enplanements of more than 28 million and 13,400 employees.
Atlantic Southeast Airlines
Delta AirElite, the Cincinnati-based executive charter and management company that is a wholly owned subsidiary of Delta Air Lines, had a record year, according to president and CEO Michael Green, but faces the prospect of being sold by the airline. The parent company has been operating under Chapter 11 bankruptcy protection since September 14 and has reportedly lost $11 billion over the last four years.
A subtle change in the material used in an electrical component caused seven fires in Bombardier CRJs, according to an NTSB recommendation released on March 30. Tyco Hartman, the manufacturer of the component, changed the material and didn’t notify Bombardier that the new part was coated with a different material that turned out to be susceptible to moisture-induced arc-tracking.
Delta Air Lines has decided to allow the leases to lapse on Atlantic Southeast Airlines’ ATR 72s, spelling the end of the fleet by June 30 of next year, according to Jerry Atkin, the CEO of ASA’s parent company, SkyWest. The twelve 66-seat turboprops have survived an extended period of turboprop divestiture at the Atlanta-based airline by maintaining their usefulness primarily in southeastern leisure markets.
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