SkyWest wraps up ASA purchase from Delta

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SOURCE: Yahoo
http://biz.yahoo.com/bizj/050908/1161204.html

SkyWest wraps up ASA purchase from Delta

Thursday September 8, 11:05 am ET

SkyWest Inc. said it has completed the $425 million purchase of Atlantic 
Southeast Airlines Inc. from Delta Air Lines Inc.

The deal calls for SkyWest (NASDAQ: SKYW - News) and ASA to continue 
flying as Delta Connection carriers through 2020.

SkyWest paid $350 million in cash at closing, consisting of $330 million 
of the purchase price and $20 million relating to certain aircraft 
financing deposits Delta had previously paid. Delta (NYSE: DAL - News) 
will receive an additional $125 million if it files for Chapter 11 
bankruptcy protection and assumes the ASA and SkyWest Airlines Delta 
Connection Agreements, or four years after closing of the transaction. 
The amount represents $95 million of the purchase price and $30 million 
relating to the return of certain aircraft financing deposits. SkyWest 
would be entitled to retain the escrow deposit if Delta files for 
bankruptcy and rejects its Delta Connection agreement with ASA or 
SkyWest Airlines prior to the fourth anniversary of the closing of this 
transaction.

For the foreseeable future, SkyWest intends to operate SkyWest Airlines 
and ASA as wholly-owned subsidiaries, with separate labor groups and FAA 
operating certificates.

SkyWest said it does not currently intend to make any significant 
changes to the operating schedules or aircraft deployment of either 
SkyWest Airlines or ASA.

Combined, SkyWest Airlines and ASA will have primary hubs in Atlanta, 
Cincinnati, Chicago, Los Angeles, San Francisco, Salt Lake City, Denver, 
Portland, and Seattle/Tacoma.

Published September 8, 2005 by the Cincinnati Business Courier

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