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SkyWest Inc. Announces Funding Arrangement With United Airlines - Quick Facts

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

SkyWest Inc. (SKYW) announced that it has reached an agreement with United Air Lines Inc. that provides operational funding to United, extends the current code-sharing relationship between SkyWest Airlines Inc., a subsidiary of SkyWest and creates the opportunity to develop a new relationship with Atlantic Southeast Airlines Inc., another subsidiary of SkyWest.

SkyWest Airlines extended to United a secured term loan in the original principal amount of $80 million. The term loan bears interest at a rate of 11%, with a ten-year amortization period.

SkyWest Airlines also agreed to defer certain amounts otherwise payable to SkyWest Airlines under the existing United Express Agreement. The maximum deferral amount is $49 million and any amounts so deferred accrue a deferral fee of 8%, payable weekly.

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