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Wed, Oct 12, 2005

Delta Bankruptcy Court Approves Delta Connection Agreements for SkyWest Airlines

Approval Sets Stage for Release of Escrow Payment

SkyWest says it has been notified that the US Bankruptcy Court for the Southern District of New York, which is administering the Chapter 11 proceeding for Delta Air Lines, has authorized Delta to assume its obligations under the Delta Connection Agreements executed between Delta and SkyWest and Atlantic Southeast Airlines, respectively.

This in connection with SkyWest's acquisition of ASA from Delta on September 7th. The approval granted by Judge Prudence C. Beatty on October 6th, if not appealed, would satisfy the conditions for release of the full amount of the escrow funds deposited by SkyWest at closing of the ASA acquisition.

The Delta Connection Agreements executed by SkyWest Airlines and ASA provide for each of SkyWest Airlines and ASA to continue flying as a Delta Connection carrier for a term of 15 years from inception and as a result, both carriers can operate in partnership with Delta through 2020.

SkyWest Airlines, based in St. George, Utah, and ASA, based in Atlanta, Georgia, are wholly owned subsidiaries of SkyWest Airlines.

FMI: www.skywest.com

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