SkyWest Airlines is pursuing other flying opportunities for major carries using 12 Bombardier CRJ200s that the regional currently operates for Midwest Airlines on the heels of Midwest announcing it will return the 50-seaters to SkyWest as part of its ongoing restructuring effort.
The first regional jet will be removed this month, followed by one aircraft in July, three aircraft in October, two aircraft in November, two aircraft in December and the final three aircraft in January 2010.
In addition, SkyWest agreed to cancel an unsecured note from Midwest worth roughly $9.3 million in exchange for a $4 million payment.
Payments are scheduled at the rate of $400,000 per regional jet as each aircraft is removed from service.
Midwest agreed to continue to pay existing rates and charges to SkyWest until the aircraft are removed from service.
The SkyWest-Midwest settlement comes as Midwest obtained $6 million in debt financing from majority owner TPG Capital and a $6 million debt financing deal with Republic Airways Holdings.
Midwest has deepened ties with Republic by also amending its air services agreement to include the operation of twelve 37-to 50-seat Embraer jets by Republic on Midwest Connect routes.
Republic jets will be phased into service starting in July 2009 through January 2010.
Prior to the latest financing, Republic supplied $25 million in loans to Midwest. An original $15 million loan coincided with the two companies reaching a deal for Republic to fly 12 70-seat Embraer E-170s for Midwest.
In May, that agreement was broadened to include two extended range Embraer E-190 aircraft that are scheduled to enter service in August and September.
Source: Air Transport Intelligence news
