SFGate: Delta Completes Sale of Feeder Carrier

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Thursday, September 8, 2005 (AP)
Delta Completes Sale of Feeder Carrier



   (09-08) 14:59 PDT ATLANTA (AP) --

   Delta Air Lines Inc. said Thursday it has completed its $425 million sale
of feeder carrier Atlantic Southeast Airlines Inc. to SkyWest Inc.

   ASA will continue to operate as a Delta Connection carrier under a 15-ye=
ar
contract with Atlanta-based Delta.

   The deal, announced last month, is part of Delta's effort to raise cash =
as
it tries to head off a possible bankruptcy filing.

   SkyWest Inc., based in St. George, Utah, is the parent company of SkyWest
Airlines, which operates as an independently owned partner carrier to
Delta and United Airlines. SkyWest has been a Delta Connection carrier
since 1987.

   The terms of the ASA sale call for $350 million in cash to be payable at
closing, representing $330 million of the purchase price and $20 million
relating to certain aircraft financing deposits.

   An additional $125 million, representing $95 million of the purchase pri=
ce
and $30 million relating to certain aircraft financing deposits, is
payable to Delta if it maintains its Delta Connection agreement with
SkyWest should it file for bankruptcy protection, or four years after the
transaction closes.

   Delta, the nation's third-largest carrier, has said the proceeds will be
used for general corporate purposes and to pay down $100 million of debt.

   Delta, hit by high fuel costs, has lost nearly $10 billion since January
2001. Delta shares rose 3 cents, or 2.7 percent, to close at $1.15
Thursday on the New York Stock Exchange.

   ___

   On the Net:

   Delta Air Lines Inc.:

   www.delta.com ----------------------------------------------------------=
------------
Copyright 2005 AP

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