As a result of the agreement to wind down these services, SkyWest has agreed to remove its remaining 12 CRJ200 regional jet aircraft from Midwest service on the following schedule: one aircraft will be removed in June 2009, one in July 2009, three in October 2009, two in November 2009, two in December 2009 and the final three aircraft will be removed in January 2010.

The airline also agreed to cancel the unsecured note from Midwest of approximately USD9.3m in exchange for Midwest giving SkyWest a payment of USD4.0m, guaranteed by Republic Airways Holdings Inc. The Midwest payment will be paid to SkyWest at the rate of USD400,000 per aircraft when each aircraft is removed from service.

Midwest will continue to pay existing rates and charges to SkyWest in accordance with the Midwest agreement, as previously amended, until the aircraft are removed from service.

According to SkyWest, it is now actively pursuing other opportunities to place the remaining 12 aircraft in alternative flight schedules. The airline stated that it believes the aircraft will be placed in other major airline codes on a schedule coinciding with the Midwest wind-down.

((Comments on this story may be sent to [email protected]))