SkyWest, United reach agreements

SkyWest, United reach funding agreement, extend codeshare arrangement

• On 10:50 am EDT, Tuesday October 20, 2009

ST. GEORGE, Utah (AP) -- The parent of SkyWest Airlines and Atlantic Southeast Airlines said Tuesday it reached an agreement with United Airlines involving operational funding and a codeshare arrangement.

SkyWest Inc. said SkyWest Airlines extended to United, a unit of UAL Corp., a secured term loan of $80 million at an interest rate of 11 percent.

The loan is secured by ground equipment and airport slot rights held by United.

SkyWest Airlines also agreed to defer certain amounts otherwise payable to SkyWest Airlines under its existing agreement to provide connecting service to United.

SkyWest said the arrangements extend SkyWest Airlines' existing rights to operate 40 regional jet aircraft under the United Express agreement until the end of their current lease terms.

SkyWest Airlines currently operates as United Express, Delta Connection and Midwest Connect carriers under contractual agreements with United, Delta Air Lines and Midwest Airlines. ASA currently operates as a Delta Connection carrier under a contractual agreement with Delta.

ASA will begin operating as a United Express carrier starting in the first quarter of 2010.