ST. GEORGE, Utah, Dec. 18, 2018 /PRNewswire/ -- SkyWest,
Inc. (NASDAQ: SKYW) today announced that it is has entered into definitive agreements to sell ExpressJet Airlines, Inc.
("ExpressJet") to United Airlines ("United") joint venture ManaAir, LLC. 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.
"Today's announcement provides further clarity and focus for the future," said Chip Childs,
SkyWest, Inc. President and Chief Executive Officer. "We want to thank the employees of ExpressJet for their valued contributions
and we look forward to continuing to strengthen our partnership with United."
About SkyWest
Based in St. George, Utah, SkyWest, Inc. is the holding company for two scheduled passenger
airline operations and an aircraft leasing company with more than 17,000 employees. SkyWest's airline companies provide
commercial air service in cities throughout North America with more than 2,500 daily flights
carrying approximately 50 million passengers annually. SkyWest Airlines operates through partnerships with United Airlines
("United"), Delta Air Lines ("Delta"), American Airlines ("American") and Alaska Airlines. ExpressJet Airlines operates through
partnerships with United and American. This press release and additional information regarding SkyWest can be accessed at
inc.skywest.com.
Forward-Looking Statements
In addition to historical information, this release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Words such as "forecasts," "expects," "intends," "believes," "anticipates,"
"estimates", "should," "likely" and similar expressions identify forward-looking statements. Such statements include, but are not
limited to, statements about the expected terms, timing and benefits related to the ExpressJet transaction, SkyWest's future
financial and operating results, plans, objectives, expectations, estimates, intentions and outlook, and other statements that
are not historical facts. All forward-looking statements included in this release are made as of the date hereof and are based on
information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statement. Readers
should note that many factors could affect the future operating and financial results of SkyWest, SkyWest Airlines or ExpressJet,
and could cause actual results to vary materially from those expressed in forward-looking statements set forth in this release
including the risk that the ExpressJet transaction may not close on the terms or timing described herein, or at all. Additional
risk factors, cautionary statements and other conditions which could cause SkyWest's actual results to differ materially from
management's current expectations are contained in SkyWest's filings with the Securities and Exchange Commission, including its
most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
View original content to download multimedia:http://www.prnewswire.com/news-releases/skywest-inc-enters-into-agreement-to-sell-expressjet-airlines-300767922.html
SOURCE SkyWest, Inc.