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Wed, Nov 19, 2014

SkyWest Announces Fleet And Contract Updates

Will Transition To All-Jet Fleet, Retiring EMB 120 Turboprops

SkyWest has unveiled fleet transitions and contract updates designed to improve SkyWest's overall efficiency and long-term profitability. Specifically, SkyWest announced that SkyWest Airlines intends to transition to an all-jet fleet by removing all remaining 30-seat Embraer 120 Brasilia turboprop aircraft (the "EMB 120s") from service by summer 2015. The EMB 120 fleet retirement comes, in part, in response to increased costs and additional challenges associated with new FAR117 flight and duty rules, implemented in January 2014.

Separately, SkyWest announced that its ExpressJet Airlines subsidiary has executed an agreement with United Airlines to reduce the term of the existing 50-seat ERJ145 contract between ExpressJet and United from November 2020 to December 2017, subject to certain extension rights by United. ExpressJet Airlines anticipates the reduction in the ERJ145 operations will improve its overall operational reliability and financial results.

As a result of the decision to remove the EMB 120 aircraft from service by June 2015 and as a result of the reduced term to operate the ERJ145 aircraft, SkyWest, Inc. anticipates recording pre-tax special charges (primarily non-cash) ranging from $55-70 million in Q4 2014.

(Image from file)

FMI: www.skywest.com

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