http://www.jsonline.com/business/47542712.html Midwest to pay $4 million to cancel SkyWest contract By Tom Daykin of the Journal Sentinel Posted: Jun. 10, 2009 2:50 p.m. Midwest Airlines Inc. will pay $4 million to cancel a contract with SkyWest Inc. to fly some of its routes, it was announced Wednesday. Oak Creek-based Midwest will make the payments as SkyWest removes its 12 CRJ200 regional jets from Midwest's routes. SkyWest will begin removing those 50-seat jets this month and will complete the process in January. Midwest announced Monday that it was getting additional financing and jet service from Republic Airways Holdings Inc. As part of that transaction, Indianapolis-based Republic is lending Midwest $6 million. Also, Republic's contract to fly jets for Midwest Airlines/Midwest Connect is expanding. Republic will add 12 Embraer regional jets, with 37 to 50 seats apiece, which will replace the SkyWest jets. Wednesday's statement from St. George, Utah-based SkyWest provides more information on the settlement agreement reached between Midwest and SkyWest over the canceled contract. SkyWest said it has agreed to cancel an unsecured $9.3 million note from Midwest. In return, Midwest has agreed to make a $4 million payment to SkyWest. That payment is guaranteed by Republic - another instance of Republic shoring up Midwest's troubled finances. Along with the $6 million loan, Republic lent Midwest $25 million last September. Midwest said that loan, which comes due this September, helped the company avoid filing for reorganization in U.S. Bankruptcy Court. Midwest's $4 million payment is to be paid to SkyWest at the rate of $400,000 for each jet removed from service. Midwest has agreed to continue to pay existing rates and charges to SkyWest until the aircraft are removed from service. <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".