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Fri, Jun 12, 2009

SkyWest Drops Midwest Airlines Service Agreement

The Two Companies Have Reached A "Mutual Agreement"

Saying that financial problems at Midwest Airlines are dragging down the bottom line, SkyWest announced Wednesday it will no longer operate regional service for Midwest Airlines.

Under the terms of a mutual agreement between the two, SkyWest will cancel Midwest's $9.3 million unsecured note. Midwest will pay $400,000 for each aircraft SkyWest takes out of service up to a total of $4 million.

According to an AP report in Forbes, there are currently 12 SkyWest regional jets in service for Milwauke-based Midwest. The company expects to begin drawing down the fleet this month,and complete the job by January of next year.  Skywest is looking to make deals with other carriers to put those planes back in service.

Along with SkyWest airlines, the company operates Atlantic Southeast Airlines, and runs flights as Delta Connection and United Express.

FMI: http://www.skywest.com/

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