The contract calls for SkyWest Airlines to provide a minimum of 15 and as many as 25 Canadair regional jets that will fly as Midwest Connect and carry Midwest colors. SkyWest also will provide crews and maintenance services for the 50-seat jets.
While financial terms were not disclosed, St. George-based SkyWest said Thursday the five-year deal will allow the company to diversify its business by adding another customer. Most of its revenue comes from flying for Delta Air Lines as Delta Connection and United Airlines as United Express. Delta is flying under bankruptcy protection. United exited bankruptcy earlier this year.
The contract also exposes SkyWest to a new part of the airline industry. Although Midwest offers a low-fare service, many customers pay extra for business-class seating, which includes roomy leather chairs and fresh-baked chocolate chip cookies, SkyWest chief financial officer Bradford Rich said.
Because SkyWest will operate the jets out of Midwest's hubs in Milwaukee and Kansas City, the St. George-based carrier is gaining a toehold in airports it doesn't already serve, Rich said.
"To us, it's a very big deal," he said. "Fifteen aircraft, on their own, is not that significant, relative to the total size of SkyWest Inc. But there's obviously more value to us than just the income that would be generated by the airplanes."
Midwest will take care of route planning, scheduling, marketing and sales for the new flights. The airline said the deal will allow it to add new destinations, increase flight frequencies on existing routes and upgrade several routes to jet service.
"We chose SkyWest because of their experience, their excellent record of operational performance and a commitment to customer service that mirrors that of Midwest," said Scott Dickson, chief marketing officer at Midwest.
The new contract comes one month after Delta chose SkyWest Inc. to take over some of the regional flying business operated by its Comair subsidiary. Delta is trying to cut expenses and return from bankruptcy next spring.
Beginning in February, Delta will shift the flying of 12 70-seat jets to SkyWest. The jets will be operated out of Comair's hub in Cincinnati. Delta is considering bids from SkyWest and other airlines to fly another 131 aircraft.
Those twin developments may require SkyWest to hire more than 300 new pilots during the next six months. Each aircraft needs nine pilots, Rich said.
The contract also follows a disclosure last week by AirTran Holdings Inc. that its $290 million offer for the parent company of Midwest was rejected. AirTran, which made the offer in October, said it would continue trying to buy the regional carrier, which wants to remain independent.
SkyWest Airlines provides an average of 1,208 daily departures for United and 454 departures for Delta.
On Tuesday, Delta filed a reorganization plan to emerge from Chapter 11 bankruptcy next year.
At the same time, its board of directors formally rejected a merger bid from US Airways. Delta's westernmost hub in Salt Lake employs about 3,900 people.
pbeebe@sltrib.com


