ASA (Atlantic Southeast Airlines) (Delta Connection) Bombardier CRJ200 (CL-600-2B19) N653BR (msn 7438) IAD (Brian McDonough), originally uploaded by Airliners Gallery.

Atlantic Southeast Airlines (Atlanta), a wholly owned subsidiary of SkyWest, Inc. (St. George), yesterday (July 13) announced that “SureJet” will be its new company name upon completion of its merger with ExpressJet Airlines. The airline acquired ExpressJet in November 2010 and is in the process of merging the two companies and operations, with the intent of achieving a single operating certificate from the FAA by the end of 2011. The combined airline’s headquarters are in Atlanta.

While the combined airline will be known by an altogether new name, qualities from the current Atlantic Southeast and ExpressJet brands were used to create the combined airline’s new logo.

• Icon
  A modified icon from the current Atlantic Southeast brand identity will be used in the SureJet logo.
  • Red is a color that denotes strength and boldness, characteristics that the people of our combined airline personify on a daily basis, and that the airline stands for as it works to become the world’s first super regional carrier.
  • The forward-moving box continues to represent our momentum and direction as a combined company.
  • The modified curved edge of the box reflects ExpressJet brand elements.
  • The modified grey bar continues to represent our business partners we rely on to be successful. The design also reflects ExpressJet brand elements.

• Type Font
  • Similar to the ExpressJet logo font, the SureJet font has forward-moving momentum. It is bold, strong and confident to balance our icon and reflect these characteristics of the combined airline.

• Tag Line: Partner. Ally. Friend.
  • The combined airline is focused on being a strong partner to mainline carriers, an ally passengers can rely on and a friend employees can trust.

Copyright Photo: Brian McDonough. Please click on the photo for additional information.

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:

ASA (Atlantic Southeast Airlines) de Havilland Canada DHC-7-102 Dash 7 N4860J (msn 19) ATL (Norbert G. Raith) (historic photo), originally uploaded by Airliners Gallery.

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

SkyWest, Inc. (St. George) today reported operating revenues of $921.2 million for the quarter ended March 31, 2012, compared to $866.0 million for the same period last year.  SkyWest also reported a net loss of $(0.7) million, or $(0.01) per diluted share, for the quarter ended March 31, 2012, compared to $(11.1) million of net loss, or $(0.21) per diluted share, for the same period last year.

The full report:

Quarter Summary

SkyWest’s operating and financial results for the quarter ended March 31, 2012 reflected a significant improvement compared to the first quarter of 2011.  Specifically, SkyWest generated positive revenue growth, period over period, primarily as a result of flying approximately 16,500 additional block hours during the first quarter of 2012.  SkyWest’s improved results also reflected the implementation of cost reduction programs during 2011 from which SkyWest achieved reduced maintenance costs, as well as other benefits.  SkyWest also produced better results than it had forecast for the quarter ended March 31, 2012, principally as a result of executing on its return to profitability objectives for 2012.  As a consequence of SkyWest’s improved results, SkyWest’s pre-tax loss for the quarter ended March 31, 2012 was $17.3 million less than the quarter ended March 31, 2011. SkyWest reported a pre-tax loss of $1.2 million for the quarter ended March 31, 2012, compared to a pre-tax loss of $18.5 million for the first quarter of 2011.  Following are the primary items that affected SkyWest’s financial results for the first quarter of 2012:

• Recorded approximately $30.1 million in additional revenues related to increased block hour production, improved utilization and ground handling contracts
• Reduction of $4.6 million in prorate flying loss
• Recorded an additional $5.7 in United CRJ200 engine overhaul costs
• Recorded an additional $3.8 million in employer benefit costs
• Recorded an additional $4.1 million of loss attributable to SkyWest’s minority investments in Trip Linhas Aereas (“TRIP”) and Mekong Aviation Joint Stock Company (“Air Mekong”)

Commenting on the results, Jerry C. Atkin, Chairman and CEO said “We are very pleased with the improvement in our financial results, quarter over quarter, as well as how we performed compared to our first quarter operating plan for 2012.”  He continued, “We executed well on our action plan items and also experienced a higher completion factor of our scheduled flights and on-time arrivals due to better weather in the quarter compared to the same period last year. We remain committed to our return to profitability program for 2012.”

Financial and Operating Results

SkyWest’s total operating revenues increased $55.2 million, or 6.4%, during the quarter ended March 31, 2012, over the same period in 2011.  The increase in operating revenues was the result of higher pass-through costs (primarily fuel and engine overhaul costs) under SkyWest’s agreements with its major partners and an increase in block hour production.  The increase in operating revenues was offset by a planned reduction in prorate flying block hours of 13.4% resulting in reduced revenues of approximately $6.0 million.  In spite of the reducing operating revenues from prorate flying, SkyWest’s revenue per available seat mile for this flying increased 14.6% from improved pricing. After excluding the increased pass-through costs of approximately $31.1 million, for fuel and engine overhauls, and the reduction in prorate flying revenue of $6.0, total operating revenues increased approximately $30.1 million due to the additional block hour production of 3.1% and improved utilization. Total block hours for the quarter ended March 31, 2012 were 556,421 compared to 539,910 for the same period last year.

Total airline expenses (consisting of total operating and interest expenses) increased $34.6 million, or 3.9%, during the quarter ended March 31, 2012, over the same period in 2011.  After excluding the increase in fuel costs of $20.7 million, total operating costs and expenses increased $13.8 million or 1.8% which was less than the rate of increase in block hours of 3.1%.

Under United Express agreements for SkyWest Airlines and ExpressJet Airlines, SkyWest recognizes revenue at a fixed hourly rate 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 March 31, 2012, CRJ200 engine expense under these agreements increased $5.7 million to $21.5 million compared to $15.8 million for the quarter ended March 31, 2011, as a result of increased engine overhaul expense due to the timing of scheduled engine maintenance events.  SkyWest was reimbursed approximately $9.4 million and $8.2 million for engine overhaul expense, under its United Express agreements, in each of the periods ended March 31, 2012 and 2011, respectively.

Liquidity

At March 31, 2012, SkyWest had $583.3 million in cash and marketable securities, compared to $646.5 million as of December 31, 2011. The reduction in cash and marketable securities during the year ended March 31, 2012 was primarily related to increases in its prepaid aircraft lease amounts and changes in certain other working capital accounts of approximately $65.5 million offset by the issuance of $2.2 million of common stock under SkyWest’s employee stock purchase program. SkyWest’s long-term debt was $1.58 billion as of March 31, 2012, compared to $1.71 billion as of December 31, 2011.  The decrease in long-term debt 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 5.2% discount rate, the present value of these lease obligations was approximately $1.9 billion as of March 31, 2012.

Other Items

During the quarter ended March 31, 2012, SkyWest achieved the following milestones:

• Completed implementation with US Airways for 14 CRJ200 regional jets
• Completed corporate merger between ExpressJet Holdings and Atlantic Southeast effective on January 1, 2012, with the surviving entity named ExpressJet Airlines, Inc.
• Total fleet as of March 31, 2012 consisted of 727 total aircraft compared to 713 aircraft for the same period last year

SkyWest is the holding company for two scheduled passenger airline operations and an aircraft leasing company and is headquartered in St. George, Utah. SkyWest’s scheduled passenger airline operations consist of SkyWest Airlines also based in St. George, Utah and ExpressJet Airlines based in Atlanta, Georgia.  SkyWest Airlines operates as United Express and Delta Connection carriers under contractual agreements with United Airlines, Inc. and Delta Air Lines, Inc.  SkyWest Airlines also operates as US Airways Express under a contractual agreement with US Airways, Inc., and operates flights for Alaska Airlines under a contractual agreement.  ExpressJet Airlines operates as United Express and Delta Connection carriers under contractual agreements with United and Delta. System-wide, SkyWest serves markets in the United States, Canada, Mexico and the Caribbean with approximately 3,900 daily departures and a fleet of approximately 727 regional aircraft.

Top Copyright Photo: Michael B. Ing.

SkyWest Slide Show: CLICK HERE

Delta Connection-Atlantic Southeast Slide Show: CLICK HERE

Delta Connection-ExpressJet Slide Show: CLICK HERE

Delta Connection-SkyWest Slide Show: CLICK HERE

ExpressJet Slide Show: CLICK HERE

United Express-ExpressJet Slide Show: CLICK HERE

United Express-SkyWest Slide Show: CLICK HERE

Middle Copyright Photo: Mark Durbin.

Bottom Copyright Photo: Brian McDonough.

United Airlines (Chicago) has announced plans to launch daily nonstop service linking its Denver hub with two new markets: Shreveport, Louisiana, and Grand Forks, North Dakota. In addition, United will expand existing summer-season flights between Denver and Anchorage to year-round service.

This new announcement comes one week after United announced daily, nonstop service between Denver and its hub at Tokyo Narita International Airport, starting in the spring of 2013.

Shreveport: Once-daily, nonstop service between Denver and Shreveport starts on August 28.  United Express carrier ExpressJet Airlines (Atlanta) will operate the flight with 50-seat Embraer ERJ 145 regional jets (above).  Shreveport Regional Airport serves north Louisiana, east Texas and southwest Arkansas.

Top Copyright Photo: Brian McDonough.

United Express-ExpressJet: 

Grand Forks: Twice-daily, nonstop service between Denver and Grand Forks International Airport begins on October 3.  United Express carrier SkyWest Airlines (St. George) will operate the flights with 50-seat Canadair CRJ200 regional jets.

Middle Copyright Photo: Michael B. Ing.

United Express-SkyWest: 

Anchorage: United’s seasonal service between Denver and Anchorage, launched on May 1 with Boeing 737-800 aircraft, will operate year-round.

Bottom Copyright Photo: Tony Storck.

United Airlines: 

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

SkyWest, Inc. (St. George) announced today that it has signed a Capacity Purchase Agreement (CPA) with American Airlines, Inc. (Dallas/Fort Worth) to operate 23 Bombardier CRJ200 regional jet aircraft under the American Eagle designation.  SkyWest currently anticipates that it will commence its American flights on November 15, 2012, with all 23 aircraft being placed in service prior to end of the first quarter 2013.   SkyWest intends to source the aircraft from its existing fleet where they have previously been operated in behalf of another major partner and anticipates that 12 of the aircraft will be flown by SkyWest Airlines, Inc. and 11 aircraft will be flown by ExpressJet Airlines, Inc. (Atlanta). SkyWest also anticipates that the American aircraft will be primarily operated out of Los Angeles International Airport and Dallas/Fort Worth International Airport.

The CPA, which has a term of four years, provides for SkyWest, through its operating airlines SkyWest Airlines and ExpressJet Airlines, to be compensated in similar fashion to existing capacity purchase agreements with SkyWest’s other major partners.

SkyWest is the holding company for two scheduled passenger airline operations and an aircraft leasing company and is headquartered in St. George, Utah. SkyWest’s scheduled passenger airline operations consist of SkyWest Airlines, also based in St. George, Utah, and ExpressJet Airlines, based in Atlanta, Georgia.  SkyWest Airlines operates as United Express and Delta Connection carriers under contractual agreements with United Airlines, Inc. and Delta Air Lines, Inc.  SkyWest Airlines also operates as US Airways Express under a contractual agreement with US Airways, Inc., and operates flights for Alaska Airlines under a contractual agreement.  ExpressJet Airlines operates as United Express and Delta Connection carriers under contractual agreements with United and Delta. System-wide, SkyWest serves markets in the United States, Canada, Mexico and the Caribbean with approximately 4,000 daily departures and a fleet of approximately 725 regional aircraft.

Copyright Photo: Michael B. Ing. Bombardier CRJ200 N496CA (msn 7791) arrives at Los Angeles.

SkyWest: 

United Airlines (Chicago) has announced plans to launch daily nonstop service from its Cleveland hub at Hopkins International Airport to Nashville and Oklahoma City, Oklahoma. The United Express flights will be operated by ExpressJet Airlines (United Express) (Atlanta) using 50-seat regional jet aircraft, with the Nashville service beginning on December 19, 2012, and the Oklahoma City service beginning on February 14, 2013.

The weekday flight schedules are as follows:

Separately, United will also discontinue service between Cleveland and Green Bay, Wisconsin, effective December 18, 2012. United will continue to offer connecting service between Cleveland and Green Bay through Chicago (O’Hare).

In other news, United is dropping the twice-weekly Guam-Okinawa route on October 31.

Copyright Photo: Tony Storck. Embraer ERJ 145LR (EMB-145LR) N14959 (msn 145091) prepares to land at Baltimore/Washington.

United Airlines: 

United Express-ExpressJet Airlines: 

United Airlines (Chicago) will restore two United Express routes from the Cleveland hub. The Cleveland-Nashville route will be restored on January 13, 2013 followed by Cleveland-Oklahoma City on February 14, 2013 per Airline Route.

In other news, United Airlines yesterday (October 1) announced that it exceeded its 80 percent on-time domestic performance goal for the month of September, and is rewarding its eligible employees with a $50 on-time bonus to recognize this performance. The airline ended the month with an 82.0 percent domestic on-time arrival rate, showing continued significant improvement from the prior months.

Copyright Photo: Brian McDonough. Embraer ERJ 145LR (EMB-145LR) N15555 (msn 145594) prepares to land at Washington (Reagan National).

United Express-ExpressJet Airlines: 

United Airlines (Chicago) has announced plans to launch twice-daily nonstop service from its Denver hub to Dickinson, North Dakota, beginning on June 6, 2013. ExpressJet Airlines (United Express) (Atlanta) will operate the United Express service using 50-seat regional jet aircraft.

“These new flights underscore United’s ongoing commitment to the Denver hub and complement our existing service to other energy markets in North Dakota,” said Randle Loveland, United’s director of regional sales in Denver. “North Dakota travelers will not only have access to Denver, but also convenient connections from the hub to other destinations, including the U.S. West Coast and Gulf Coast, Canada, Latin America and the Caribbean.

The flight schedules are as follows:

Copyright Photo: Keith Burton. Embraer ERJ 145LR (EMB-145LR) N12921 (msn 145354) of ExpressJet Airlines approaches Toronto (Pearson) for landing.

United Airlines: 

United Express-ExpressJet Airlines: 

Route Map for the United Express operation:

Please click on the map for the full-size view.

ExpressJet Airlines (Atlanta) has joined the JetBlue University Gateway Program to give pilots a career path. The following statement was released:

The highly-successful University Gateway Program, a four-way collaboration with JetBlue Airways (New York), Cape Air (Hyannis), the University of North Dakota (UND) and Embry-Riddle Aeronautical University (ERAU), has added another airline.  ExpressJet Airlines, the largest regional airline in the world, will partner with Cape Air to provide a parallel path for aspiring pilots to join JetBlue. The Gateway Program has been designed to facilitate the early-entry of highly-qualified pilots from Aviation Accreditation Board International (AABI) programs, who have appropriate flight instructor experience, into Cape Air, where they further hone their skills. After gaining their Captain’s credentials at Cape Air, pilots can choose to interview with ExpressJet.  If accepted, they will be slotted for a training class providing valuable time as pilots in command.  They then will be eligible for a final interview with JetBlue after gaining their necessary hours.

There are now 140 pilots in the Gateway Program.  To date, four pilots have successfully completed the necessary steps and have been hired by JetBlue, with more qualifying for a final interview every month.  Cape Air expects as many as 50 pilots per year will eventually join JetBlue via the program.

Copyright Photo: Mark Durbin. ExpressJet’s Embraer ERJ 145XR (EMB-145XR) N16147 (msn 145749) is pictured at the Houston (Bush Intercontinental) hub operating as an United Express carrier.

United Express-ExpressJet: 

Routes flown for United Airlines:

Please click on the map for the full size view.

SkyWest Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George) has signed a firm order for 100 Embraer E175-E2 aircraft, with another 100 Purchase Rights, bringing the total potential of the order to 200 aircraft. The announcement was made today at a press conference at the 50th International Paris Airshow. If all the orders are exercised, the contract has an estimated value, at list price, of $9.36 billion.

This new contract is in addition to SkyWest’s previous order in May 2013 for up to 200 current generation E175 aircraft, and therefore the potential order of E-Jets at SkyWest may reach 400 aircraft.

As the first operator to order the E175-E2, SkyWest becomes the launch customer for that aircraft, one of three E-Jets E2 models. SkyWest is the largest regional airline group in the world.  It is the parent company of SkyWest Airlines and ExpressJet Airlines, both of which have been long time operators of Embraer aircraft.  More than 40 EMB-120 Brasilia turboprops continue to fly in the SkyWest Airlines network, primarily in the western states. ExpressJet Airlines operates 249 aircraft from the ERJ 145 family and has the largest ERJ fleet in the world.

The E-Jets E2 represent Embraer’s commitment to continuously invest in the company’s line of commercial jets and maintain its leadership in the 70 to 130 seats market. The three new airplanes (E175-E2, E190-E2, E195-E2) carry the designator “E2” which signifies generational changes in technology that have been incorporated in the design. Each of the three aircraft has the versatility for a range of single class, multi-class or high-density seat capacities to suit operator requirements with new ‘look and feel’ and improved comfort levels.

State-of-the-art engines in combination with new aerodynamically advanced wings, full fly-by-wire flight controls, and advancements in other systems will result in double-digit improvements in fuel burn, maintenance costs, emissions and external noise.

The first delivery of an E-Jets E2 (the E190-E2) is planned for the first semester of 2018. The E195-E2 is slated to enter service in 2019 and the E175-E2 in 2020. Over 950 E-Jets have been delivered to date. Currently, 65 customers from 47 countries have added Embraer E-Jets to their fleets.

Pratt & Whitney will provide exclusive power for up to 100 firm plus 100 purchase right Embraer Second Generation E-Jets for an order announced today by Embraer and SkyWest, Inc. Deliveriesare scheduled to begin in 2020. Pratt & Whitney is a division of United Technologies Corporation.

Each Embraer Second Generation E2 E-Jet will be powered by two PurePower engines. Pratt & Whitney has announced orders for more than 3,500 engines that include announced and unannounced firm orders, plus options. The PurePower family of engines uses an advanced gear system allowing the engine’s fan to operate at a different speed than the low-pressure compressor and turbine. The combination of the gear system and an all-new advanced core deliver the improvements in fuel efficiency, environmental emissions and noise.

Image: Embraer.

SkyWest Airlines: 

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:

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: 

United Airlines (Chicago) has announced plans to launch new nonstop service from its Chicago hub at O’Hare International Airport to Elmira, New York, and State College, Pennsylvania. The airline also plans to begin new service from Chicago O’hare to Topeka, Kansas, subject to government approval. ExpressJet Airlines (Atlanta) will operate the United Express flights using 50-seat regional jet aircraft. The State College and Topeka flights will begin on January 7, 2014, and the Elmira service will begin on February 13, 2014.

The weekday flight schedules follow. Weekend schedules may vary. Schedules are subject to change.

Elmira and Topeka are both new destinations in United’s route network. The airline currently serves State College from its hub at Washington Dulles.

With these new routes, United has added service to ten new destinations from Chicago O’Hare since the beginning of 2013. Other new year-round and seasonal destinations include Mobile, Alabama; Fairbanks, Alaska; Nassau, Bahamas; Shannon, Ireland; San Jose, Costa Rica; Thunder Bay, Ontario; and Saskatoon, Saskatchewan.

United and United Express operate nearly 570 daily flights from the O’Hare hub to more than 125 domestic and more than 30 international destinations.

Copyright Photo: ExpressJet’s Embraer ERJ 145XR (EMB-145XR) N11194 (msn 145940) arrives at the Dulles International hub near Washington.

United Express-ExpressJet: 

United Airlines (Chicago) today announced the airline will inaugurate service at Atlantic City International Airport, offering customers daily nonstop flights to United’s hubs at Chicago O’Hare International Airport and Houston’s George Bush Intercontinental Airport beginning on April 1, 2014..

From Houston, United’s flight to Atlantic City will depart at 7 p.m. (1900) daily, arriving at 11:20 p.m. (2320). The return flight will depart Atlantic City at 6 a.m. (0600) and arrive in Houston at 8:49 a.m. (0849).

United Express carrier ExpressJet Airlines (Atlanta) will operate the Atlantic City flights with 50-seat Embraer ERJ 145 aircraft.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. ExpressJet Airlines’ Embraer ERJ 145XR (EMB-145XR) N12136 (msn 145719) arrives at the Chicago O’Hare hub.

United Airlines: 

United Express-ExpressJet: 

United Airlines (Chicago) is ending United Express service from Topeka, Kansas to the Chicago (O’Hare) hub on September 3 according to Airline Route.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Embraer ERJ 145XR (EMB-145XR) N18101 (msn 145590) arrives at the Chicago O’Hare hub.

United Airlines (current): 

United Express/ExpressJet: 

United Airlines (Chicago) will drop the Washington (Dulles)-New York (JFK) route on October 26. ExpressJet Airlines (Atlanta) currently operates the United Express route with CRJ200s per Airline Route.

Copyright Photo: Brian McDonough/AirlinersGallery.com. ExpressJet Airlines’ Bombardier CRJ200 (CL-600-2B19) N877AS (msn 7579) arrives at the Washington Dulles hub.

United Airlines (current): 

United Express-ExpressJet: 

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) today reported financial and operating results for the third quarter ended September 30, 2014. Highlights are as follows:

SkyWest’s net income was $41.3 million (inclusive of $15.3 million after-tax related to TRIP gain from below), or $0.79 per diluted share, for the quarter ended September 30, 2014. This compares to net income of $26.4 million, or $0.50 per diluted share, for the same period last year.

Significant financial items related to the third quarter included:

Operating income, which excludes TRIP gain, increased $2.9 million from the same period last year, despite the negative financial impact of FAR117 flight and duty rules implemented January 2014

The completion of the Trip Linhas Aereas S.A. stock sale resulted in a pre-tax gain of $24.9 million and interest income of $2.1 million

Operating revenues, after excluding a reduction in direct contract reimbursement for pass-through cost expenses, increased 1.9% compared to the prior period, despite a 6.0% reduction in departures and 3.8% reduction in block hours from the prior period

Significant operational and commercial items include:

16 ERJ145s were removed from contract during the third quarter of 2014. SkyWest anticipates 18 ERJ145s will be removed during the fourth quarter of 2014, and 23 ERJ145s and 9 ERJ135s will be removed during the first half of 2015.

As of September 30, 2014, SkyWest had 14 E175 jet aircraft in the United Airlines contract and took delivery of one additional E175 in October 2014. SkyWest expects delivery of six additional E175 aircraft by December 31, 2014 and the remaining 19 additional aircraft by August 2015.

ExpressJet appointed Alexandria Marren as its COO effective October 1, 2014

Operational reliability at ExpressJet improved to 99.4% adjusted completion for the September 30, 2014 quarter from 99.0% from the same period last year

SkyWest invested approximately $35.7 million for E175 specific spare parts, engines and tooling as of September 30, 2014. SkyWest also invested $56.0 million into E175 ownership equity as of September 30, 2014.

Commenting on the results, Jerry C. Atkin, SkyWest’s Chairman and CEO said, “The increase in operating income from last year is positive news when factoring the significant cost impact of FAR117 we’ve experienced in 2014 and the reduction in departures and block hours since last year.” He continued, “As we pursue opportunities to remove our older 50-seat aircraft from service and add new larger dual-class aircraft, we are optimistic that our operational reliability and financial results will continue to improve. We remain committed to our major partners and our process to improve both financial and operating performance.”

Financial Performance

Total operating revenues, excluding the significant direct contract reimburses for fuel, landing fees, station rents, and engine maintenance, increased by $12.7 million during the quarter ended September 30, 2014 from the same period last year. The improvement was primarily due to certain contract renewals and modifications, operating additional E175 aircraft, and increased government subsidies for operating certain routes.

Flight crew costs and related crew hotels expenses associated with FAR117 and training costs for the introduction of the new E175 aircraft, that resulted in an increase of $13.8 million in operating costs compared to the quarter ended September 30, 2013.

Direct maintenance expense, excluding engine maintenance expense, decreased $12.2 million during the quarter ended September 30, 2014 compared to the same period last year due to a reduction in scheduled events and removal of older aircraft after June 30, 2013. Certain other operating expenses, primarily related to the E175 aircraft and pro-rate operations, increased during the three months ended September 30, 2014 compared to the same period last year.

Liquidity

At September 30, 2014, SkyWest had $555.7 million in cash and marketable securities, compared to $467.0 million as of June 30, 2014 and $670.1 million as of December 31, 2013. Cash and marketable securities decreased $114.4 million from December 31, 2013 to September 30, 2014, primarily due to SkyWest’s investment of approximately $91.7 million in E175 assets and E175 equity investment in the debt financing and timing of semi-annual aircraft lease payments resulting in an increase of prepaid aircraft rents of $20.3 million. The cash and marketable securities balance increased from June 30, 2014 primarily due to pre-tax income generated during the quarter.

Long-term debt increased $130.8 million from December 31, 2013 to September 30, 2014. During this period, $323.7 million of long-term debt was used for the 14 E175 aircraft delivered in 2014, offset by principal payments made on outstanding debt.

Copyright Photo: Mark Durbin/AirlinersGallery.com. As the Embraer ERJ 135 and ERJ 145 fleet shrinks at ExpressJet, SkyWest Airlines had 14 Embraer ERJ 175 jet aircraft in the United Airlines contract at the end of September and took delivery of one additional ERJ 175 this month. SkyWest expects delivery of six additional E175 aircraft by December 31, 2014 and the remaining 19 additional aircraft by August 2015. Embarrass ERJ 170-200LR (ERJ 175) N118SY (msn 17000420) taxies at the San Francisco hub.

United Express-SkyWest Aircraft Slide Show: 

SkyWest, Inc. (SkyWest Airlines and ExpressJet Airlines) (St. George, Utah) has announced fleet transitions and contract updates designed to improve SkyWest’s overall efficiency and long-term profitability.

Specifically, SkyWest announced that SkyWest Airlines, Inc., its wholly-owned subsidiary, intends to transition to an all-jet fleet by removing all remaining 30-seat Embraer EMB-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.

Separately, SkyWest 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 ERJ 145 contract between ExpressJet and United from November 2020 to December 2017, subject to certain extension rights by United. ExpressJet Airlines anticipates the reduction in the ERJ 145 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 ERJ 145 aircraft, SkyWest, Inc. anticipates recording pre-tax special charges (primarily non-cash) ranging from $55-70 million in the fourth quarter of 2014.

It is unclear how the grounding and retirement of the Brasilia fleet will affect air service to remote communities.

Top Copyright Photo: Michael B. Ing/AirlinersGallery.com. SkyWest Airlines mainly operates its Brasilias under the United Express brand however 13 EMB-120s wear the SkyWest house livery (below). Embraer EMB-120ER brasilia N294SW (msn 120321) arrives in Los Angeles.

United Express-SkyWest Airlines aircraft slide show: 

SkyWest Airlines aircraft slide show: 

Bottom Copyright Photo: Michael B. Ing/AirlinersGallery.com. Embraer EMB-120ER Brasilia N217SW (msn 120286) arrives in Las Vegas.

United Airlines (Chicago) is ending Houston (Bush Intercontinental) – Dallas (Love Field) United Express service on March 16. Currently ExpressJet Airlines operates seven daily flights on the route per Airline Route.

Previously Southwest Airlines had announced it was sub-leasing two gates from United Airlines at Love Field. Southwest will now operate from 18 gates at DAL and will start new flights to nine cities in April.

Copyright Photo: Brian McDonough/AirlinersGallery.com. ExpressJet Airlines Embraer ERJ 145XR (EMB-145XR) N17169 (msn 145844) arrives at Dulles International Airport near Washington.

United Express-ExpressJet aircraft slide show: