ST. GEORGE, Utah, Sept. 6, 2017 /PRNewswire/ -- SkyWest, Inc.
(NASDAQ: SKYW) ("SkyWest") today reported that it has entered into
aircraft purchase agreements and capacity purchase agreements to
acquire and fly 15 new aircraft with Delta Air Lines ("Delta") and
10 new aircraft with Alaska Airlines ("Alaska"), of which five aircraft with
Alaska were previously discussed.
Expected delivery dates of the 25 aircraft run from March 2018 through the end of 2018.
Of the 25 aircraft, 15 Embraer E175 SC aircraft will fly under
an agreement with Delta in a 70-seat configuration. The E175 SC
aircraft has an E175 airframe and can be retrofitted to 76 seats in
the future. The agreement with Alaska includes 10 Embraer E175s, which will
be configured with 76 seats, similar to aircraft SkyWest has
previously placed into service with Alaska.
Similar structurally to SkyWest's acquisition of 104 E175s,
SkyWest expects to invest approximately $90
million in cash to acquire these 25 new aircraft, and to
finance the balance of the purchase price with 12-year fixed rate
debt. These aircraft will be operated by SkyWest Airlines, Inc. a
wholly owned subsidiary of SkyWest.
About SkyWest
SkyWest, Inc. is the holding company for two scheduled passenger
airline operations and an aircraft leasing company. SkyWest's
airline companies provide commercial air service in cities
throughout North America with more
than 2,900 daily flights carrying more than 50 million passengers
annually. SkyWest Airlines operates through partnerships with
United Airlines ("United"), Delta Air Lines ("Delta"), American
Airlines ("American") and Alaska Airlines. ExpressJet Airlines
operates through partnerships with United, Delta and American.
Based in St. George, Utah, SkyWest
continues to set the standard for excellence across the regional
industry with unmatched value for customers, shareholders and its
more than 17,000 employees. This press release and additional
information regarding SkyWest can be accessed at
inc.skywest.com.
Forward Looking-Statements
In addition to historical information, this release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Words such as
"forecasts", "expects," "intends," "believes," "anticipates,"
"estimates", "should," "likely" and similar expressions identify
forward-looking statements. Such statements include, but are not
limited to, statements about SkyWest's future financial and
operating results, plans, objectives, expectations, estimates,
intentions and outlook, and other statements that are not
historical facts. 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. Readers should note that
many factors could affect the future operating and financial
results of SkyWest, SkyWest Airlines or ExpressJet, and could cause
actual results to vary materially from those expressed in
forward-looking statements set forth in this release. These factors
include, but are not limited to, the prospects of entering into
agreements with existing or other carriers to fly new aircraft,
ongoing negotiations between SkyWest, SkyWest Airlines and
ExpressJet and their major partners regarding their contractual
obligations, uncertainties regarding operation of new aircraft, the
ability to attract and retain qualified pilots, the impact of
regulatory issues such as pilot rest rules and qualification
requirements, and the ability to obtain aircraft financing.
Actual operational and financial results of SkyWest, SkyWest
Airlines and ExpressJet will likely also vary, and may vary
materially, from those anticipated, estimated, projected or
expected for a number of other reasons, including, in addition to
those identified above: the challenges and costs of integrating
operations and realizing anticipated synergies and other benefits
from the acquisition of ExpressJet; the challenges of competing
successfully in a highly competitive and rapidly changing industry;
developments associated with fluctuations in the economy and the
demand for air travel; the financial stability of SkyWest's major
partners and any potential impact of their financial condition on
the operations of SkyWest, SkyWest Airlines, or ExpressJet;
fluctuations in flight schedules, which are determined by the major
partners for whom SkyWest's operating airlines conduct flight
operations; variations in market and economic conditions;
significant aircraft lease and debt commitments; realization of
manufacturer residual value guarantees on applicable SkyWest
aircraft; residual aircraft values and related impairment charges;
labor relations and costs; the impact of global instability;
rapidly fluctuating fuel costs, and potential fuel shortages; the
impact of weather-related or other natural disasters on air travel
and airline costs; aircraft deliveries; the ability to attract and
retain qualified pilots and other unanticipated factors. Risk
factors, cautionary statements and other conditions which could
cause SkyWest's actual results to differ materially from
management's current expectations are contained in SkyWest's
filings with the Securities and Exchange Commission, including its
most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q.
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SOURCE SkyWest, Inc.