Category Archives: Delta Connection

SkyWest to acquire 20 additional aircraft, will expand its relationship with Delta and Alaska

Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N252SY (msn 17000612) LAX (Michael B. Ing). Image: 936861.

SkyWest, Inc. has announced additional order of 20 new aircraft and new flying agreements

  • Order includes 15 70-seat Embraer E175 SC aircraft expected to be delivered and placed into service with Delta Air Lines in 2018
  • Order includes five 76-seat Embraer E175 aircraft expected to be delivered and placed into service with Alaska Airlines in late 2017 and early 2018`
  • Terms and economics similar to prior contracts with each partner

    SkyWest, Inc. has reported that it has entered into aircraft purchase agreements and capacity purchase agreements to acquire and fly 15 additional new aircraft with Delta Air Lines and five additional new aircraft with Alaska Airlines. Expected delivery dates for the 20 aircraft run from September 2017 through the end of 2018. These aircraft will be operated by SkyWest Airlines, Inc. a wholly owned subsidiary of SkyWest.

    Of the 20 aircraft, 15 Embraer E175 SC aircraft will fly under an agreement with Delta in a 70-seat configuration. The E175 SC aircraft has an E175 airframe and can be retrofitted to 76 seats in the future. The agreement with Alaska includes five Embraer E175s, with a 76-seat configuration, similar to aircraft SkyWest has previously placed into service with Alaska.

    Combined with last month’s announcement for 25 new aircraft, this announcement results in a cumulative order of 45 new aircraft. Similar structurally to SkyWest’s acquisition of 104 E175s, SkyWest expects to invest approximately $161 million in cash to acquire these 45 aircraft, and to finance the balance of the purchase price with debt. The expected delivery dates for the 45 aircraft run from September 2017 through the end of 2018, with the majority of the deliveries scheduled for mid-2018.

 

Top Copyright Photo: Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N252SY (msn 17000612) LAX (Michael B. Ing). Image: 936861.

Delta Connection:

Alaska SkyWest:

Bottom Copyright Photo: Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N186SY (msn 17000606) ONT (Michael B. Ing). Image: 938865.

Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N186SY (msn 17000606) ONT (Michael B. Ing). Image: 938865.

Advertisements

ExpressJet expands its relationship with United and American, drops Delta

Delta Connection-ExpressJet Airlines Bombardier CRJ900 (CL-600-2D24) N307PQ (msn 15307) ATL (Jay Selman). Image: 403371.

ExpressJet Airlines, a wholly-owned subsidiary of SkyWest, Inc. has announced the initiation of a clearly defined long-term strategy:

  •  Long-term agreement secured with United Airlines. As part of this plan, ExpressJet has secured a new, five-year extension of its United Airlines ERJ 145 contract, effective January 1, 2018 through Dec. 31, 2022. The new agreement enhances ExpressJet’s United partnership and provides long-term stability to its model. It also provides ExpressJet pilots with continued access to United’s Career Pathway Program. Financial terms of the agreement were not disclosed.
  •  Early termination of Delta CPA. Additionally, ExpressJet and Delta Air Lines mutually agreed to initiate the wind-down of its remaining dual-class flying agreement under the Delta Connection brand, allowing ExpressJet opportunities to place aircraft with other partners. The agreement, which includes 28 CRJ900s and 33 CRJ700s, was previously scheduled to expire beginning in 2019. The aircraft financed by Delta, including all CRJ900s, will be returned to Delta beginning in fourth quarter 2017; ExpressJet expects to transition other aircraft previously operated under its Delta agreement to other major partners throughout 2018.
  •  Agreement with American for eight additional CRJ700s. As part of this realignment, ExpressJet has secured an agreement with American Airlines to transition eight additional CRJ700s to its American Eagle operation. That transition is expected to take place during second quarter 2018.

Copyright Photo: Delta Connection-ExpressJet Airlines Bombardier CRJ900 (CL-600-2D24) N307PQ (msn 15307) ATL (Jay Selman). Image: 403371.

SkyWest’s ExpressJet to retire its CRJ200 fleet over the next year

ExpressJet to retire its CRJ200 fleet in late 2017

SkyWest, Inc. has announced additional fleet transitions and contract updates designed to reduce SkyWest’s long-term fleet risk and enhance its ability to respond to changing partner needs.

Specifically, SkyWest’s ExpressJet operation expects to transition to flying primarily dual-class aircraft in its CRJ operation by removing its Bombardier CRJ200 aircraft from service over the next year.

The removal of the CRJ200 aircraft reduces ExpressJet’s future required investment in its 50-seat fleet and is expected to improve the airline’s operating efficiency by eliminating an aircraft type from its platform.

SkyWest also announced ExpressJet and American Airlines have agreed to place 12 dual-class CRJ700s into service under a multi-year term. These CRJ700s had been scheduled to be removed from service under a previously-disclosed early lease return arrangement.

Additionally, SkyWest and Bombardier entered into a termination agreement covering Bombardier’s residual value guarantee (“RVG”) agreements on 76 CRJ200 aircraft owned by SkyWest Airlines and ExpressJet. Bombardier agreed to pay SkyWest $90 million by January 2017 along with certain other consideration in exchange for the release. Both the required sale of each aircraft and the cost to SkyWest of returning the aircraft to mid-time condition were points of risk and uncertainty for SkyWest that this termination agreement eliminates.

As a result of the expectation to remove ExpressJet CRJ200s from service and the Bombardier RVG termination agreement, SkyWest is evaluating its total 50-seat CRJ200 fleet and related long-lived assets for impairment in Q4 2016. SkyWest currently anticipates it will record a non-cash impairment charge in Q4 2016 estimated to be in the range of $440 million to $490 million (pre-tax) on its CRJ200 aircraft and other 50-seat aircraft assets, net of the $90 million in cash proceeds from the Bombardier termination agreement.

Copyright Photo: Delta Connection-ExpressJet Airlines Bombardier CRJ200 (CL-600-2B19) N923EV (msn 7826) ATL (Jay Selman). Image: 403333.

Slide Show:

ag-airline-aircraft-slide-show

ag-8-decades-of-color-photography

Compass Airlines amends its CBA for First Officer first-year pilot pay

Delta Connection-Compass Airlines Embraer ERJ 170-200LR (ERJ 175) N638CZ (msn 17000259) LAX (Michael B. Ing). Image: 930227.

Compass Airlines (Minneapolis/St. Paul) (American Eagle and Delta Connection) has issued this statement about increasing the First Officer first-year pay in order to attract new pilots:
Compass logo-1Compass Airlines is pleased to announce that the Collective Bargaining Agreement (CBA) for its pilot group has been amended to increase first year, First Officer pay to $35.81 per flight hour. An additional highlight of the amended CBA is the provision of four paid hotel stays per month for commuting pilots. The amendment also gives Compass the flexibility to quickly raise first year pay in response to market conditions. The agreement was reached as part of a voluntary mediated settlement of a number of outstanding issues between Compass Airlines and its pilot group, represented by the Air Line Pilots Association (ALPA).

 

The amendments to the contract are effective immediately.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Compass Airlines Embraer ERJ 170-200LR (ERJ 175) N638CZ (msn 17000259) departs from Los Angeles International Airport (LAX).

Delta Connection-Compass Airlines aircraft slide show: AG Airline Slide Show

AG Strict Screeners

 

Delta to start Los Angeles – Denver flights

Delta Connection-SkyWest Airlines Bombardier CRJ900 (CL-600-2D24) N807SK (msn 15082) LAX (Michael B. Ing). Image: 929995.

Delta Air Lines (Atlanta) will launch five daily flights from Los Angeles International Airport to Denver International Airport beginning June 1, 2016.

In 2016, Delta will begin operating Boeing 717 aircraft on all Delta Shuttle flights between Los Angeles and San Francisco, increase to 10 daily flights to both New York-JFK and Seattle/Tacoma and add a third daily flight to Boston. Delta’s seat growth in Los Angeles has grown more than 99 percent since 2009, the most of any carrier.

Delta’s Los Angeles to Denver flights will be operated by Delta Connection carrier SkyWest Airlines (St. George) using two-class, 76-seat Bombardier CRJ900 aircraft.

Delta operates 160 peak-day departures to 60 destinations from Los Angeles.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Bombardier CRJ900 (CL-600-2D24) N807SK (msn 15082) of SkyWest Airlines departs from LAX.

Delta Connection-SkyWest aircraft slide show: AG Airline Slide Show

JustPlanes 25 Years banner

SkyWest to operate 19 new Embraer 175s for Delta

Embraer 175 (Flt)(Embraer)(LR)

SkyWest, Inc. (SkyWest Airlines) (St. George, Utah) today issued this statement:

SkyWest (red-blue) logo (LRW)

SkyWest, Inc. announced today that it has entered into a Capacity Purchase Agreement (CPA) with Delta Air Lines (Atlanta) to operate 19 new Embraer E175 dual-class regional jet aircraft. SkyWest has determined that these 19 E175 aircraft will be operated by SkyWest Airlines, Inc. (St. George) a wholly-owned subsidiary of SkyWest. The CPA is under terms and conditions similar to SkyWest’s existing Delta agreements.

Delta Connection logo

“SkyWest is a longtime Delta partner, and we’re pleased to advance our partnership with an additional aircraft type,” said Chip Childs, SkyWest, Inc. President. “As we continue to evolve our fleet mix, we look forward to continuing to deliver what our partners need through solid, reliable service.”

The aircraft will be flown in dual-class configuration of 76-seats, and will be equipped with Wi-Fi. Under the agreement, it is anticipated that delivery of the aircraft will begin in August 2016, with all 19 aircraft being delivered by mid-2017.

In related news, Embraer and SkyWest, Inc. have signed a firm order for an additional 19 E175s jets. The aircraft will be flown by SkyWest Airlines, Inc. a wholly-owned subsidiary of SkyWest, under a Capacity Purchase Agreement (CPA) with Delta Air Lines. The transaction will be included in Embraer’s 2015 fourth-quarter backlog. Delivery of the first aircraft is expected for the third-quarter of 2016.

SkyWest Airlines currently operates the E175 for Alaska Airlines (Alaska SkyWest) and United Airlines (United Express).

Image: Embraer.

Delta Connection-SkyWest aircraft slide show: AG Airline Slide Show

JustPlanes 25 Years banner

Delta to connect its Seattle/Tacoma hub with Orange County

Delta Air Lines (Atlanta) will added Embraer 175 Delta Connection service (operated by Compass Airlines) between its Seattle/Tacoma hub and Orange County (John Wayne) starting on May 1, 2016.

The airline made this announcement:

Delta logo

Delta Air Lines’ hub at Seattle-Tacoma International Airport will continue to grow next spring with the launch of four daily flights to Orange County’s John Wayne Airport beginning May 1, 2016.

In all, Delta will launch service to ten destinations from Seattle/Tacoma between November 2015 and May 2016: Billings, Montana.; Boston; Cancun, Mexico; Edmonton, Alberta; Kona on Hawaii’s Big Island; Missoula, Montana; Orange County; Orlando; Pasco, Washington; and Victoria, British Columbia. Some service may be operated by Delta Connection carriers SkyWest Airlines and Compass Airlines.

Delta’s Seattle/Tacoma to Orange County flights will be operated by Delta Connection carrier Compass Airlines using Embraer 175 aircraft.

In other news, Delta will operate weekly Boeing 737-800 Cuban charters from Atlanta to Havana starting on April 2, 2016.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Compass Airlines’ Embraer ERJ 170-200LR (ERJ 175) N612CZ (msn 17000201) taxies to the runway at Seattle-Tacoma International Airport.

Delta Air Lines aircraft slide show (current livery): AG Airline Slide Show

Delta Connection-Compass aircraft slide show: AG Airline Slide Show

AG Prints-Lustre-Glossy-Matte-Metallic