Utah-based SkyWest, Inc. (NASDAQ: SKYW) has announced it has agreed to sell ExpressJet Airlines, Inc. to ManaAir, LLC, a joint venture with United Airlines, the company said.
The transaction is expected to close in early 2019, subject to customary closing conditions.
Consideration for the transaction includes approximately USD 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.
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.
SkyWest, Inc. airline companies provide commercial air service in cities throughout North America with more than 2,500 daily flights carrying approximately 50 million passengers annually.