SkyWest To Sell ExpressJet Airlines To United JV ManaAir - Quick Facts

(RTTNews) - SkyWest, Inc. (SKYW) said Tuesday that it has entered into definitive agreements to sell ExpressJet Airlines, Inc. to United Airlines (UAL) joint venture ManaAir, LLC.

According to SkyWest, consideration for the transaction includes about $70 million in cash for the majority of the assets and the assumption of liabilities of ExpressJet, subject to a working capital adjustment. The ExpressJet assets excluded from the transaction will be utilized or liquidated by SkyWest.

Skywest noted that the expected realizable value to the company of the remaining inventory is estimated to approximate the value of the working capital adjustment. SkyWest will retain ownership of the CRJ aircraft currently in service at ExpressJet.

The transaction also includes certain protections around existing SkyWest Airlines flying, as well as priority position to add 25 new dual-cabin aircraft with United should those opportunities arise.

As part of the transaction, SkyWest has also agreed to lease 20 CRJ200s to ExpressJet for up to five years.

The transaction is expected to close in early 2019, subject to customary closing conditions.