SkyWest announced fleet transitions and contract updates designed to improve SkyWest’s overall efficiency and long-term profitability. Specifically, SkyWest announced that SkyWest Airlines, its wholly-owned subsidiary 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 ExpressJet Airlines its wholly-owned subsidiary (“ExpressJet Airlines”), 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. 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 anticipates recording pre-tax special charges (primarily non-cash) ranging from US$55-70m in Q4 2014.
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SkyWest announces fleet and contract updates
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