Delta agrees to sell regional airline to SkyWest for $425 million
Delta Air Lines said Monday it has entered into a definitive agreement to sell its wholly owned regional airline subsidiary Atlantic Southeast Airlines (ASA) to SkyWest Inc. for $425 million in cash, subject to regulatory approval.
Delta said it will use the proceeds for general corporate purposes and to pay down $100 million of outstanding borrowings under its credit facility with GE Commercial Finance and other lenders.
“As we continue to implement Delta’s transformation plan, this transaction not only enhances our ability to operate our business as efficiently and cost effectively as we can, it also improves Delta’s liquidity position,” said Gerald Grinstein, Delta’s chief executive officer.
Delta purchased ASA in 1999. ASA operates a fleet of 151 aircraft and employs nearly 6,000 staff.
Under terms of the deal, ASA and SkyWest Airlines will continue to serve as Delta’s connecting regional carriers through 2020.
Delta said it expects the transaction to be completed by September.