SkyWest Airlines to Transition to All-Jet Fleet; Details on how this will impact Rock Springs/Sweetwater County Airport still under discussion

ROCK SPRINGS – SkyWest Airlines has announced they will be transitioning to an all-jet fleet. How this will affect the Rock Springs/Sweetwater County airport is still being worked out.

On Wednesday, SkyWest spokesperson Marissa Snow spoke to SweetwaterNOW about the changes. Snow said sometime between January and May of 2015 the change will take place. Snow said they are working closely with airports impacted by the change. Specific details such as changes to the flight schedule, costs and how many flights there will be are being discussed with each airport.

“SkyWest Airlines will transition to an all-jet fleet by May 2015,” SkyWest said in a statement. “We are currently evaluating fleet availability with our partners and will be working close with airport officials and community leaders on the potential for regional jet service into Rock Springs Sweetwater County Airport.”

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Snow said they hope to have all the final details worked out by the end of the year.

On Monday, SkyWest, Inc. (NASDAQ: SKYW) announced the 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 (“SkyWest Airlines”), intends to transition to an all-jet fleet by removing all remaining 30-seat Embraer 120 Brasilia turboprop aircraft (the “EMB 120s”) 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 (“ExpressJet Airlines”), has executed an agreement with United Airlines, Inc. (“United”) to reduce the term of the existing 50-seat ERJ145 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 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 $55-70 million in Q4 2014.