SkyWest to recognise $20m gain from selling Trip stake

Washington DC
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US regional carrier SkyWest Inc. will recognise an estimated gain of $20 million as a result of selling its 26% stake in Brazilian carrier Trip Linhas Aereas for $42 million, says SkyWest president Bradford Rich during a conference call today.

Rich says the $20 million represents a gain from the net book value of the investment and the timeframe for when the company will recognise the gain has yet to be determined. Rich says that SkyWest considers the overall transaction to be successful.

In May, SkyWest announced it would sell its share of Trip to Brazilian limited liability company Trip Investimentos Ltda. Trip has announced it will merge with Brazilian carrier Azul.

SkyWest acquired its initial stake in the airline in August 2008 and then decreased its investment to $23.2 million by the end of the first quarter of 2012. The company has invested $30 million for the 26% ownership, of which 20% is comprised of common stock, and 6% is preferred stock.