Tag Archives: Atlantic Southeast Airlines

Delta to remain at Dallas Love Field until (at least) the end of the year

Delta Air Lines (Atlanta) has won a reprieve with the City of Dallas. The airline will be able to retain Delta Connection service to the Atlanta hub from Love Field in Dallas through the end of this year according to the Dallas News.

Last week as we reported, Delta had received notice from the airport that it had to vacate the airport on October 13. The carrier had been subleasing two gates from American Airlines which go to Virgin America on this date.

Delta had been threatening to sue the airport according to the report.

Read the full report: CLICK HERE

Read the analysis by Bloomberg Businessweek: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. The route is operated with Bombardier CRJ200s operated by ExpressJet Airlines (formerly ASA). Bombardier CRJ200 (CL-600-2B19) N848AS (msn 7339) arrives in Atlanta.

Delta Air Lines: AG Slide Show

Delta Connection: AG Slide Show

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SkyWest reports increased net income of $20.7 million in the second quarter

SkyWest, Inc. (SkyWest Airlines and Atlantic Southeast Airlines) (St. George) today reported net income of $20.7 million, or $0.39 per diluted share, for the quarter ended June 30, 2013, compared to net income of $17.0 million, or $0.33 per diluted share, for the same period last year.

SkyWest also reported net income of $24.0 million, or $0.46 per diluted share, for the six months ended June 30, 2013, compared to $16.3 million, or $0.32 per diluted share, for the same period last year.

Quarter Highlights

SkyWest experienced improved financial results for the quarter ended June 30, 2013 compared to its financial results for the quarter ended June 30, 2012.  SkyWest generated additional block hour production and corresponding operating revenues (after giving effect to reduced fuel and certain engine overhaul pass through revenues) as a result of increased utilization and increasing the size of its aircraft fleet between June 30, 2013 and June 30, 2012.  Following are selected highlights from SkyWest’s quarter ended June 30, 2013, compared to the quarter ended June 30, 2012:

  • Increased pretax income 17.8% to $33.7 million, compared to $28.6 million
  • Increased fully-diluted EPS 18.2% to $0.39, compared to $0.33
  • Increased block hour production 6.1% to 609,711 block hours, compared to 574,884 block hours
  • Recorded approximately $28.2 million in additional revenues (net of fuel and certain engine overhaul pass through revenues), primarily related to increased block hour production
  • Increased total aircraft fleet to 760 aircraft as of June 30, 2013, compared to 725 aircraft as of June 30, 2012

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO, said “We are pleased with the progress we continue to make in producing improved operational and financial performance as compared to the same period last year.”  He continued, “We will remain focused on our profit improvement objectives while continuing to deal with the ever-present challenges in the airline industry.”

Financial and Operating Results

Operating revenues totaled $839.1 million for the quarter ended June 30, 2013, compared to $937.2 million for the same period last year or a decrease of $98.1 million.  The decrease was due primarily to the reduction of $117.9 million of fuel and certain engine overhaul amounts which were directly reimbursed by SkyWest’s major partners and recorded as operating revenues.  However, this reduction was partially offset by recording approximately $28.2 million in additional operating revenues primarily resulting from a 6.1% increase total block hours for the quarter ended June 30, 2013, compared to the quarter ended June 30, 2012.

Total airline expenses (consisting of total operating and interest expenses) decreased $103.7 million, or 11.4%, during the quarter ended June 30, 2013, compared to the same period in 2012.  However, after excluding pass-through costs for fuel and certain engine overhaul expenses, total airline expenses increased $14.2 million or only 1.9% which was less than the 6.1% increase in block hours produced.

Under certain of its agreements with its major partners, SkyWest recognizes revenue at fixed hourly rates for mature engine maintenance on regional jet engines and SkyWest recognizes engine maintenance expense on its CRJ200 regional jet engines on an as-incurred basis as maintenance expense.  During the quarter ended June 30, 2013, CRJ200 engine expense under these agreements decreased $3.2 million to $10.6 million compared to $13.8 million for the quarter ended June 30, 2012, as a result of decreased engine overhaul expense due to the timing of scheduled engine maintenance events.  SkyWest was reimbursed approximately $12.8 million and $10.2 million for engine overhaul expense, under its agreements, in each of the periods ended June 30, 2013 and 2012, respectively.

Liquidity

At June 30, 2013, SkyWest had $665.6 million in cash and marketable securities, compared to $709.4 million as of December 31, 2012.  The decrease in cash and marketable securities of $43.8 million was primarily the result of the payment of scheduled semi-annual lease and debt payments as well as making deposits on recent aircraft orders.  Cash and marketable securities increased $34.1 million during the quarter ended June 30, 2013 compared to the balance of $631.5 as of the quarter ended March 31, 2013.  SkyWest’s long-term debt was $1.38 billion as of June 30, 2013, compared to $1.47 billion as of December 31, 2012.  The decrease in long-term debt for the six-months ended June 30, 2013 was due primarily to SkyWest’s payment of normal recurring debt obligations.  SkyWest has significant long-term lease obligations that are recorded as operating leases and are not reflected as liabilities on SkyWest’s consolidated balance sheets.  At a 4.7% discount rate, the present value of these lease obligations was approximately $1.5 billion as of June 30, 2013.

Recent Business Developments

On May 21, 2013, SkyWest announced it had entered into a Capacity Purchase Agreement (“CPA”) with United Airlines, Inc. (Chicago) to operate 40 new Embraer ERJ 175 dual-class regional jet aircraft. The CPA is for 12 years and the aircraft will be operated by SkyWest’s wholly-owned subsidiary, SkyWest Airlines, Inc. (St. George). Deliveries for these aircraft are scheduled to begin in April 2014 and continue through August 2015.

Additionally, on May 21, 2013 SkyWest announced it reached an agreement with Embraer S.A. for the purchase of 100 new ERJ 175 dual-class regional jet aircraft, 40 of which are considered firm and 60 aircraft remain conditional upon SkyWest entering into capacity purchase agreements with other major airlines. SkyWest intends to place the 40 new aircraft into service under the terms of the United CPA discussed above.

On June 17, 2013, SkyWest and Embraer jointly announced an aircraft purchase agreement covering 100 E175-E2 dual-class regional jet aircraft and an option to purchase an additional 100 of the same aircraft.  Deliveries for these E2 aircraft are tentatively planned for 2020.

On August 2, 2012, SkyWest announced the award of 34 additional dual-class aircraft and the removal of 66 CRJ200 aircraft under its Delta Connection Agreements with Delta Airlines, Inc. (Atlanta) and by end of May 2013, all 34 of these dual-class aircraft had been delivered. As of June 30, 2013 SkyWest had removed 24 (22 placed in contract with another partner; other 2 removed from fleet) of the 66 CRJ200 aircraft and currently anticipates removing another 24 CRJ200 aircraft during the months of September 2013 through December 2013.  These 24 aircraft have been financed by Delta and will be returned to Delta with no further obligation by SkyWest.  SkyWest believes the remaining 18 aircraft will be removed at various times through 2014 and early 2015.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. The CRJ200s will be totally removed from the Delta Connection contract by early 2015. SkyWest Airlines Bombardier CRJ200 (CL-600-2B19) N423SW (msn 7456) approaches Los Angeles International Airport.

Delta Connection-SkyWest Airlines: AG Slide Show

 

Delta to start weekly seasonal nonstop Atlanta-Fargo, North Dakota flights on December 21

Delta Air Lines (Atlanta) will add new nonstop seasonal service between Fargo, North Dakota and Atlanta, effective on December 21, 2013. Fargo is a growing market.

The Saturday-only service between Fargo’s Hector International Airport and Hartsfield-Jackson Atlanta International Airport will be operated by Delta Connection carrier ExpressJet Airlines (Atlanta) using a two-class Bombardier CRJ900, equipped with 12 First Class seats, 12 Economy Comfort seats and 52 seats in the main cabin.

Delta’s new nonstop seasonal service between Fargo and Atlanta is scheduled as follows:

Service Flight Departs Arrives Service Begins Service Ends
ATL-FAR 5180 7:15 p.m. 9:30 p.m. Dec. 21, 2013 March 29, 2014
FAR-ATL 5181 6:15 a.m. 10:10 a.m. Dec. 21, 2013 March 29, 2014

Copyright Photo: Jay Selman/AirlinersGallery.com. CRJ900 (CL-600-2D24) N131EV (msn 15217) prepares to taxi from the gate at the Atlanta hub.

Delta Air Lines: AG Slide Show

Delta to drop Newburgh-Atlanta service on September 1

Delta Air Lines (Atlanta) will drop the Newburgh (Stewart International Airport)-Atlanta route on September 1 due to low numbers. The route is operated by ExpressJet Airlines. Atlantic Southwest Airlines (ASA) was merged with ExpressJet on December 31, 2011 and adopted the ExpressJet name.

Read the full story from recordonline.com: CLICK HERE

Copyright Photo: Bruce Drum.

Delta Connection-Atlantic Southeast Airlines: CLICK HERE

Delta to end Washington Reagan National-Jackson, MS service

Delta Air Lines (Atlanta) is ending Washington (Reagan National)-Jackson, Mississippi service on March 2, 2012. The move is part of its swap deal with US Airways and DL is reducing its presence at DCA and building up at LGA. The route was operated by Atlantic Southeast Airlines (soon ExpressJet Airlines) as a Delta Connection flight.

Copyright Photo: Jay Selman. Please click on the photo for additional information.

Atlantic Southeast Airlines and ExpressJet Airlines receive FAA approval for a single operating certificate

SkyWest, Inc. (St. George) announced today its wholly owned subsidiary, Atlantic Southeast Airlines (Atlanta) and ExpressJet Airlines (Houston), a wholly owned subsidiary of Atlantic Southeast, received approval on November 17, 2011 from the Federal Aviation Administration (FAA) for a single operating certificate. This was the final regulatory step for the two merging airlines to operate as one.

As a result of this approval, effective on December 31, 2011, the combined airline will operate solely as ExpressJet Airlines and will be the largest regional airline in the world with more than 400 aircraft operating over 2,350 flights each day. The Atlantic Southeast Airlines name will pass into aviation history on this date.

Historic Copyright Photo: Norbert G. Raith. Please click on the photo for the full story of ASA.

ASA Slide Show: CLICK HERE

Atlantic Southeast Airlines name to be retired, will adopt the ExpressJet name

Atlantic Southeast Airlines (ASA) (Atlanta) name will disappear with the new year. However the logo will continue as the new ExpressJet brand.

Atlantic Southeast, a wholly owned subsidiary of SkyWest, Inc. (St. George), today (October 14) announced that it will adopt the ExpressJet Airlines, Inc. (Houston) name for its combined identity upon completion of its merger with ExpressJet Airlines. The merger is expected to be completed by December 31, 2011, at which time the name would be effective.

The combined airline’s brand identity borrows key elements of the legacy Atlantic Southeast and legacy ExpressJet brands.

Atlantic Southeast and ExpressJet will continue operating as separate airlines, with separate operating certificates, until single operating certificate (SOC) status is achieved based on approval from the FAA. SOC approval is currently expected by the end of 2011. In the meantime, both airlines will continue using their current names for operational and corporate purposes. The Atlantic Southeast corporate name will officially change on December 31, 2011.

Atlantic Southeast completed its acquisition of ExpressJet Airlines on November 12, 2010, and has since been working to harmonize business functions and operational functions through the post merger integration and single operating certificate processes (SOC). The combined airline’s headquarters are in Atlanta.

The merger of these two airlines will create the world’s largest regional airline with about 10,000 aviation professionals, 2,400 daily flights and an all-jet fleet of approximately 400 aircraft. Together, Atlantic Southeast and ExpressJet fly to more than 190 airports in 41 U.S. states, the District of Columbia, the Caribbean, Canada, and Mexico. Through capacity purchase agreements with Delta Air Lines and United Airlines, Atlantic Southeast operates as Delta Connection and United Express. ExpressJet operates as Continental Express and United Express through capacity purchase agreements with Continental Airlines and United Airlines.

Atlantic Southeast Airlines (ASA) was established on March 12, 1979. Scheduled passenger operations commenced on June 27, 1979 with one 19-passenger de Havilland Canada DHC-6 Twin Otter operating between Atlanta and Columbus, Georgia.

Combined Route Map: