Category Archives: SkyWest Airlines

American to add new domestic routes later this year

American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N955SW (msn 7817) PHX (Keith Burton). Image: 946556.

American Airlines is planning to add new domestic routes from its hubs later this year according to Airline Route:

Chicago O’Hare – Charleston, WV – daily SkyWest CRJ200 effective September 4, 2019
Dallas/Ft. Worth – St. George – daily SkyWest CRJ200 effective September 26, 2019


Miami – Bentonville/Northwest Arkansas – daily Republic Airline Embraer 175 effective December 18, 2019


Miami – Columbia, SC – daily Envoy Air Embraer ERJ 145 effective December 18, 2019
Miami – Oklahoma City – daily Republic Airline Embraer 175 effective December 18, 2019
Philadelphia – Vail/Eagle, CO – weekly mainline Boeing 757-200 effective December 21, 2019
Phoenix – Rapid City, SD (Black Hills/Mount Rushmore) – daily SkyWest CRJ200 effective September 4, 2019

Top Copyright Photo: American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N955SW (msn 7817) PHX (Keith Burton). Image: 946556.

American Eagle-SkyWest aircraft slide show:

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SkyWest invests in Southern Airways Express, new pilot pipeline established

Southern Airways Corporation, the parent company of Southern Airways Express and Mokulele Airlines, has announced a strategic minority investment by SkyWest, Inc.

Southern now has more than 200 pilots in its combined pilot corps, many of whom are looking to advance their aviation careers to regional and mainline carriers.

SkyWest is the largest regional carrier in the world as measured by fleet size, number of passengers carried and cities served. This strategic investment by SkyWest will enhance Southern’s recruiting capabilities by providing a career pathway from flight school through Southern’s cadet program and ultimately to SkyWest.

Southern, with operational footprints in the Gulf South, the mid-Atlantic and South Florida, recently acquired Mokulele Airlines, a carrier providing service throughout the Hawaiian Islands and in Southern California.

Southern began service in 2013 by offering flights from Memphis, Tenn. to Destin, Fla. using a total of four pilots and three aircraft. In 2015, Southern acquired Executive Express Aviation, an Illinois-based charter company that was previously contracted to operate the Southern flight schedule. In February 2016, Southern acquired Sun Air Express, an airline operating Essential Air Service (EAS) routes in the mid-Atlantic. Three years later, in February of 2019, Southern acquired Mokulele. Following the integration of the two airlines, expected to be complete by mid-summer, the new Southern Airways will operate 1,380 weekly flights, more than any other carrier in the 50 states.
Route Map:

SkyWest, Inc. announces a first quarter 2019 profit

American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N710SK (msn 10170) LAX (Michael B. Ing). Image: 946297.

SkyWest, Inc. today reported financial and operating results for Q1 2019, including net income of $88 million, or $1.69 per diluted share, compared to net income of $54 million, or $1.03 per diluted share, for Q1 2018. Adjusted net income in Q1 2019 was $69 million, up 27% from Q1 2018 primarily due to SkyWest’s ongoing fleet transition, as SkyWest has added 43 new aircraft since Q1 2018, and reduced aircraft ownership costs resulting from early lease buyouts executed in early 2019.

Commenting on the results, Chip Childs, Chief Executive Officer and President of SkyWest, said, “This quarter was significant for SkyWest as we move forward as one airline with a smaller, but more efficient footprint.  Our team performed well this quarter through a series of severe weather events.  We are encouraged with our progress and are working together with our 14,000 employees to deliver the best possible product to our partners.”

Financial Highlights
Revenue was $724 million in Q1 2019, down from $783 million in Q1 2018 due to the sale of ExpressJet Airlines (“ExpressJet”) in January 2019. Excluding ExpressJet revenue in both periods, revenue increased to $700 million in Q1 2019 from $622 million in Q1 2018 primarily from the impact of adding 35 new E175 and eight new CRJ900 aircraft since Q1 2018.

Operating expenses were $627 million in Q1 2019, down from $695 million in Q1 2018 due to the sale of ExpressJet. Excluding ExpressJet operating expenses in both periods, operating expenses increased to $599 million in Q1 2019 from $528 million in Q1 2018, primarily from the additional aircraft placed into service, higher labor costs and special item operating expenses in Q1 2019.

The adjusted results for the quarter exclude $24.7 million of pre-tax earnings comprised of the gain on the sale of ExpressJet of $46.6 million (pre-tax) and a $21.9 million (pre-tax) expense primarily due to a non-cash write-off of aircraft manufacturer part credits forfeited to settle future lease return obligations.

Operational Update
Flying contract extension
SkyWest announced today that it has agreed to a multi-year extension with American Airlines on 38 CRJ700 aircraft (top).  These aircraft previously had contract maturities scheduled to begin in late 2019.  SkyWest also expects to add two used CRJ700 aircraft to the American contract in Q2 2019 under a multi-year term.

Lease agreement with a third-party for 29 CRJ700 aircraft
SkyWest also announced today that it has agreed to lease 29 CRJ700 aircraft to a third-party for a ten-year term, subject to the finalization of their flying contract.  SkyWest anticipates the aircraft will be placed under lease in increments from mid-2019 to mid-2020.

Delivery schedule under previously announced agreements
E175 aircraft to be financed by SkyWest and operated for Delta Air Lines and Alaska Airlines:

  • Took delivery of one aircraft during Q1 2019 (Delta contract)
  • Scheduled to take delivery of four aircraft in Q2 2019 (Delta contract)
  • Scheduled to take delivery of four aircraft in mid-2020 (Delta contract)
  • Scheduled to take delivery of three aircraft in 2021 (Alaska contract)

SkyWest expects to remove a used CRJ900 aircraft from its contract with Delta as each of these ERJ175 aircraft is placed into service with Delta (total of nine CRJ900 expected removals).  As previously announced, SkyWest anticipates leasing five CRJ900s to a third party under a six-year term and returning four CRJ900s to a lessor following removal of service with Delta.

CRJ900 aircraft to be financed by Delta and operated by SkyWest for Delta:

  • Took delivery of three aircraft during Q1 2019
  • Scheduled to take delivery of four aircraft in mid-2019
  • Scheduled to take delivery of eight aircraft in 2020

SkyWest expects to remove a used CRJ700 from its contract with Delta as each of these CRJ900 financed by Delta is placed into service.  As previously announced, SkyWest anticipates transitioning the CRJ700s removed under this arrangement with Delta to an agreement with American.

Joint venture with Regional One
SkyWest entered into a joint venture with Regional One during Q1 2019.  The primary purpose of the joint venture is to lease spare engines to third parties.  SkyWest anticipates initiating transactions through the joint venture beginning in Q2 2019, including the transfer of 14 engines into the joint venture.

Previously announced transactions that closed in Q1 2019
In January 2019, SkyWest completed the previously announced sale of ExpressJet to ManaAir, LLC.  The transaction was completed in two parts, through an asset sale and stock sale, for an aggregate sales price of $77 million.  SkyWest loaned $26 million to ManaAir in conjunction with the closing.

SkyWest also completed the previously-announced early leveraged lease buyout on 16 CRJ700s and 36 CRJ200s.  SkyWest used $110 million in Q1 2019 to acquire these aircraft off lease.  SkyWest assumed no debt on these aircraft.

Capital and Liquidity
SkyWest had $544 million in cash and marketable securities at March 31, 2019, down from $689 million at December 31, 2018. During the first quarter of 2019, SkyWest:

  • Used $110 million to acquire 52 CRJ aircraft under an early lease buyout
  • Used $90 million to acquire 16 used CRJ700s previously operated and leased by a SkyWest entity. SkyWest anticipates leasing the majority of airframes and engines to third parties and using a portion of aircraft components as spare parts.
  • Received $51 million net cash from the sale of ExpressJet
  • Used $25 million to repurchase stock, of which $21 million was purchased under SkyWest’s $250 million share repurchase program approved during Q1 2019
  • Used $4 million toward the purchase of one E175 aircraft
  • Used $28 million for other capital investments, primarily related to spare engines, aircraft parts and maintenance assets

Total debt at March 31, 2019 was $3.1 billion, down from $3.2 billion as of December 31, 2018.   Q1 2019 ending debt balance included debt issued for one E175 aircraft acquired during the quarter, offset by principal payments.

Top Copyright Photo (all others by the airline): American Eagle Airlines (2nd)-SkyWest Airlines Bombardier CRJ700 (CL-600-2C10) N710SK (msn 10170) LAX (Michael B. Ing). Image: 946297.

American Eagle-SkyWest aircraft slide show:

Alaska SkyWest route map:

American Eagle route map:

Delta Connection route map:

United Express route map:

Propeller Airports welcomes United Airlines back to Paine Field

First arrival at Paine Field, Everett, WA

Propeller Airports issued this statement:

Paine Field’s Passenger Terminal added to its commercial flight offerings on March 31 as United Airlines’ first passenger flight arrived from Denver and its first departure left for San Francisco. United’s launch comes just one month after Alaska Airlines inaugurated commercial service at the terminal, owned and operated by Propeller Airports under an innovative Public Private Partnership with Snohomish County.

Photos: Paine Field.

The new service will provide additional flexibility and options for Seattle-area travelers, with United offering four daily nonstops to San Francisco and two daily nonstops to Denver. This launch represents a homecoming for United – the first airline to operate a commercial flight from Paine Field when the airport opened nearly 80 years ago.

Sunday is also an opportunity for Propeller to celebrate its first month operating the new passenger terminal, on which the company finished construction in late 2018. Paine Field has seen strong passenger demand from day one and expects that to continue with the introduction of United’s service. From Paine Field, travelers are able to reach every major west coast city with easy connections to anywhere in the world.

To mark this special occasion, aviation legend Clay Lacy joined United Managing Director of West Coast Sales Marie Downey and Propeller CEO Brett Smith to cut the ribbon for United’s first departure to San Francisco. Clay Lacy began flying at the age of 12 and joined United in 1952 where he flew nine aircraft types including the DC-3, Boeing’s 727 and the iconic 747. Clay holds 29 world speed records, including a 36-hour, 54-minute, 15-second around-the-world record in 1988 flying a Boeing 747 that raised money for children’s charities. He has flown more than 300 aircraft types, logged more than 50,000 flight hours and has accumulated more miles flying jet aircraft than anyone on Earth. Clay retired from United with seniority No. 1 in 1992 after more than 41 years of incident-free flying.

“We are excited to offer our Seattle and Northwest Washington area customers with four daily flights to San Franciscoand two daily flights to Denver,” said United’s Managing Director of West Coast Sales, Marie Downey. “This new service from Paine Field will give our customers in Northern Seattle, Snohomish and Northern King County areas access to hundreds of destinations while making their travel experience more convenient.”

United’s entry to Paine Field is the latest in a wide array of partners to ramp up operations at the airport this month, including Uber, Lyft, Avis Rent A Car, Enterprise Holdings, and Beecher’s Cheese. Beecher’s, the exclusive concessions vendor, will be opening a full-service restaurant in the terminal later this year.

The new service is operated by SkyWest Airlines for United Airlines.

Top Copyright Photo: The first UA arrival at PAE. United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N103SY (msn 17000390) PAE (Nick Dean). Image: 946133.

United Express-SkyWest aircraft slide show:

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Embraer and SkyWest, Inc. sign contract for nine E175 jets

Embraer and SkyWest, Inc. have signed a firm order for nine E175 jets, with deliveries expected to begin in 2019. The order has a value of $422 million, based on current list prices, and was already included in Embraer’s 2018 fourth-quarter backlog. SkyWest Airlines will operate all nine E175s, featuring a 76-seat configuration.

“Since 2013, SkyWest has purchased a total of 158 E175s, including these nine, in order to expand their large existing fleet of Embraer aircraft,” said Charlie Hillis, Vice President, Sales & Marketing, North America, Embraer Commercial Aviation. “We are extremely proud of their ongoing support for the E-Jets program and the fact that the E175 continues to outperform in North America. Without a doubt, the E175 has become the backbone of the regional aviation market in the U.S.”

Including this new contract, Embraer has sold more than 565 E175s to airlines in North America, since January 2013, earning more than 80% of all orders in this 70-76-seat jet segment.

SkyWest, Inc. is a premier regional airline company and the holding company of SkyWest Airlines. SkyWest holds a long history with Embraer as early customers for the Embraer EMB 120 Brasilia turboprop aircraft.

Since entering revenue service, the E-Jets family has received more than 1,800 orders and over 1,500 aircraft have been delivered. Today, E-Jets are flying in the fleet of 70 customers in 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.

Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N403SY (msn 17000738) LAX (Michael B. Ing). Image: 945520.

Above Copyright Photo: Alaska SkyWest (SkyWest Airlines) Embraer ERJ 170-200LR (ERJ 175) N403SY (msn 17000738) LAX (Michael B. Ing). Image: 945520.

Below Copyright Photo: Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N244SY (msn 17000588) SNA (Michael B. Ing). Image: 945470.

Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N244SY (msn 17000588) SNA (Michael B. Ing). Image: 945470.

Bottom Copyright Photo: United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N151SY (msn 17000503) LAX (Michael B. Ing). Image: 945522.

United Express-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N151SY (msn 17000503) LAX (Michael B. Ing). Image: 945522.

Delta adds Santa Barbara to its route map with service from the Salt Lake City hub

Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N250SY (msn 17000610) SNA (Michael B. Ing). Image: 945472.

Delta Air Lines has made this announcement:

Delta is making the ‘American Riviera’ more accessible than ever with the launch of three daily year-round flights from Salt Lake City International Airport to Santa Barbara Airport, a new destination on Delta’s route map, on August 12, 2019.

Santa Barbara will become the 330th destination in Delta’s expanding network and the 13th city in California served by the airline. Combined with the start of other new routes – including Detroit-San Jose in November 2018, Atlanta-Ontario in April, Detroit-Sacramento in June, and Atlanta-Burbank in July – Delta will grow the number of seats it offers from California by eight percent.

​For Delta’s hub in Salt Lake City, Santa Barbara is the latest in a series of destinations that have been added in the last two years, including Cleveland, Ohio; Columbus, Ohio; El Paso, Texas; Fort Lauderdale, Florida; Milwaukee, Wisconsin; Pittsburgh, Pennsylvania; and Tampa, Florida.

The flights will operate on the following schedule and are now available for sale:

Departs Arrives
Salt Lake City (SLC) at 11:05 a.m. Santa Barbara (SBA) at 12:16 p.m.
Salt Lake City (SLC) at 3 p.m. Santa Barbara (SBA) at 4:11 p.m.
Salt Lake City (SLC) at 8:30 p.m. Santa Barbara (SBA) at 9:39 p.m.
Santa Barbara (SBA) at 6 a.m.* Salt Lake City (SLC) at 8:57 a.m.
Santa Barbara (SBA) at 1:05 p.m. Salt Lake City (SLC) at 4 p.m.
Santa Barbara (SBA) at 4:45 p.m. Salt Lake City (SLC) at 7:40 p.m.

*First flight departing SBA is on Aug. 13, 2019

Salt Lake City-Santa Barbara service will be operated by Delta Connection carrier SkyWest on a 76-seat Embraer E-175 aircraft with 12 seats in First Class, 20 seats in Delta Comfort+ and 44 seats in the Main Cabin. All flights will offer free entertainment through Delta Studio, as well as free messaging, access to Wi-Fi, and complimentary snacks and beverages.

Delta offers more than 280 departures to more than 90 destinations from its Salt Lake City hub, linking Santa Barbara to dozens of West Coast, Mountain West, East Coast and international destinations with a single, easy connection. Salt Lake City is a fast growing hub for Delta with seats up nearly 30 percent since 2014. As Salt Lake City’s largest carrier, Delta has invested in and worked closely with the airport on a multi-billion dollar infrastructure project to build the airport of the future in SLC, with the first phase expected to open in 2020.

Top Copyright Photo (all others by SkyWest): Delta Connection-SkyWest Airlines Embraer ERJ 170-200LR (ERJ 175) N250SY (msn 17000610) SNA (Michael B. Ing). Image: 945472.

Delta Connection-SkyWest aircraft slide show:

SkyWest’s routes flown for Delta:

Delta’s Domestic Route Map:

SkyWest, Inc. enters into an agreement to sell ExpressJet Airlines

United Express-ExpressJet Airlines Embraer ERJ 145LR (EMB-145LR) N13949 (msn 145057) DCA (Brian McDonough). Image: 906356.

SkyWest, Inc. today announced that it is has entered into definitive agreements to sell ExpressJet Airlines, Inc. to ManaAir, LLC, a company in which United Airlines owns a minority interest.

The transaction is expected to close in early 2019, subject to customary closing conditions.

Consideration for the transaction includes approximately $70 million in cash for the majority of the assets and the assumption of liabilities of ExpressJet, subject to a working capital adjustment. The ExpressJet assets excluded from the transaction will be utilized or liquidated by SkyWest. The expected realizable value to SkyWest of the remaining inventory is estimated to approximate the value of the working capital adjustment. SkyWest will retain ownership of the CRJ aircraft currently in service at ExpressJet.

The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priority position to add 25 new dual-cabin aircraft with United should those opportunities arise.

As part of the transaction, SkyWest has also agreed to lease 20 CRJ200s to ExpressJet for up to five years.

ExpressJet Airlines, Inc. operates a fleet of Bombardier and Embraer regional jet aircraft to more than 110 destinations in the U.S., Canada and Mexico.

ExpressJet has nearly 70 years of flying history and was formed through multiple airline mergers and transformations that occurred during that time. Today, ExpressJet is headquartered in Atlanta and operates as American Eagle and United Express.

Starting in early 2019, ExpressJet will begin flying exclusively as United Express, with flight operations centered out of Houston, Chicago, Cleveland and Newark. ExpressJet currently flies the Bombardier CRJ200, CRJ700 and Embraer ERJ145 for United Express.

ExpressJet Fact Sheet

Crew domiciles

Chicago (ORD); Cleveland (CLE); Dallas (DFW); Houston (IAH); Knoxville (TYS); Newark (EWR)

Maintenance bases (including line stations)

Baton Rouge, La. (BTR); Chicago (ORD); Cleveland (CLE); Houston (IAH); Knoxville, Tenn. (TYS); Newark, N.J. (EWR); Richmond, Va. (RIC)

Airports currently served

111 airports in 36 U.S. states, District of Columbia, Canada and Mexico

Employees

3,000 (active)

Average number of daily scheduled departures

System: 493

Mainline Partners

American Airlines (ExpressJet operating as American Eagle)
United Airlines (ExpressJet operating as United Express)

Passengers carried in 2017

15.5 million

Total revenue passenger miles flown in 2017

7.6 billion

Total aircraft in operating fleet

126 Bombardier and Embraer Jet Aircraft

Aircraft

(11) 65-passenger Bombardier CRJ700 regional jets
(10) 50-passenger Bombardier CRJ200 regional jets
(105) 50-passenger Embraer ERJ145 regional jets

Our Values

Our core values guide us as we work to achieve our vision:

  • Putting safety first in everything we do.
  • Treating people with dignity and respect.
  • Operating with honesty, integrity and transparency in everything we do.
  • Working smart with commitment to continuous self improvement.
  • Taking pride in making sure the job is done right.

Top Copyright Photo: United Express-ExpressJet Airlines Embraer ERJ 145LR (EMB-145LR) N13949 (msn 145057) DCA (Brian McDonough). Image: 906356.

United Express-ExpressJet aircraft slide show:

Route Map: Routes flown for United Airlines: