SkyWest Airlines To Transition To All-Jet Fleet

(RTTNews) - SkyWest Inc. (SKYW) announced that its wholly-owned subsidiary, SkyWest Airlines, Inc., intends to transition to an all-jet fleet by removing all remaining 30-seat Embraer 120 Brasilia turboprop aircraft from service by summer 2015. The EMB 120 fleet retirement comes, in part, in response to increased costs and additional challenges associated with new FAR117 flight and duty rules, implemented in January 2014.

SkyWest also announced that ExpressJet Airlines, Inc., its wholly-owned subsidiary, has executed an agreement with United Airlines, Inc. to reduce the term of the existing 50-seat ERJ145 contract between ExpressJet and United from November 2020 to December 2017. ExpressJet Airlines anticipates the reduction in the ERJ145 operations will improve its overall operational reliability and financial results.

As a result of the decision to remove the EMB 120 aircraft from service by June 2015 and as a result of the reduced term to operate the ERJ145 aircraft, SkyWest, Inc. anticipates recording pre-tax special charges (primarily non-cash) ranging from $55 million - $70 million in the fourth-quarter of 2014.