ST. GEORGE, Utah, Dec. 18, 2018 /PRNewswire/ -- SkyWest, Inc.
(NASDAQ: SKYW) today announced that it is has entered into
definitive agreements to sell ExpressJet Airlines, Inc.
("ExpressJet") to United Airlines ("United") joint venture ManaAir,
LLC. The transaction is expected to close in early 2019, subject to
customary closing conditions.
Consideration for the transaction includes approximately
$70 million in cash for the majority
of the assets and the assumption of liabilities of ExpressJet,
subject to a working capital adjustment. The ExpressJet assets
excluded from the transaction will be utilized or liquidated by
SkyWest. The expected realizable value to SkyWest of the remaining
inventory is estimated to approximate the value of the working
capital adjustment. SkyWest will retain ownership of the CRJ
aircraft currently in service at ExpressJet.
The transaction also includes certain protections around
existing SkyWest Airlines flying, as well as priority position to
add 25 new dual-cabin aircraft with United should those
opportunities arise. As part of the transaction, SkyWest has also
agreed to lease 20 CRJ200s to ExpressJet for up to five years.
"Today's announcement provides further clarity and focus for the
future," said Chip Childs, SkyWest,
Inc. President and Chief Executive Officer. "We want to thank the
employees of ExpressJet for their valued contributions and we look
forward to continuing to strengthen our partnership with
United."
About SkyWest
Based in St. George, Utah,
SkyWest, Inc. is the holding company for two scheduled passenger
airline operations and an aircraft leasing company with more than
17,000 employees. SkyWest's airline companies provide commercial
air service in cities throughout North
America with more than 2,500 daily flights carrying
approximately 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 and American. 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 the
expected terms, timing and benefits related to the ExpressJet
transaction, 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 including the risk that the ExpressJet
transaction may not close on the terms or timing described herein,
or at all. Additional 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.