Aviation News

August 4, 2010

ExpressJet to Merge with SkyWest

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Written by: BNO News
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Skywest ERJ-145LR and SkyWest CRJ-200ER
Skywest ERJ-145LR and SkyWest CRJ-200ER

An ExpressJet ERJ-145LR (N14558) makes an appearance at JFK (Photo by Eric Dunetz), while a SkyWest CRJ-200ER (N506CA) approaches Philadelphia International. (Photo by Joe Osciak).

SkyWest, Inc. on Wednesday announced that it has entered into a definitive merger agreement with ExpressJet Holdings, Inc..

According to SkyWest, Atlantic Southeast Airlines, Inc., SkyWest’s wholly-owned subsidiary, will acquire all of the outstanding shares of common stock of ExpressJet for $6.75 per share in cash, representing a net purchase price of approximately $133 million after giving effect for shares already owned by Atlantic Southeast. ExpressJet’s primary operating entity is ExpressJet Airlines, Inc.

According to SkyWest, the definitive merger agreement has been unanimously approved by the SkyWest and ExpressJet boards of directors. The transaction is not subject to financing conditions, but is subject to receipt of certain regulatory approvals, approval of ExpressJet stockholders and other customary conditions. The transaction will close during the fourth quarter of 2010.

Atlantic Southeast has negotiated the principal terms of a new, long-term, capacity purchase agreement with Continental Airlines, Inc. which is intended to become effective upon consummation of the ExpressJet merger.

Upon completion of the merger, ExpressJet will become a wholly-owned subsidiary of Atlantic Southeast, with the intention of combining the operations of ExpressJet Airlines and Atlantic Southeast, subject to receipt of necessary regulatory approvals, and utilizing Atlantic Southeast’s existing facilities in Atlanta, Georgia as the operating headquarters of the combined company.

The parties anticipate that both airlines will continue to operate under separate airline operating certificates until the regulatory process can be completed for combining the airlines under a single operating certificate.

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