SkyWest files complaint over dispute with Delta Air Lines

SkyWest, reported that a complaint has been filed in the Superior Court of Fulton County, State of Georgia, against Delta Air Lines, Inc. (“Delta”) related to a dispute under the Delta Connection Agreements entered into between Delta and SkyWest Airlines (“SkyWest Airlines”) and Atlantic Southeast Airlines (“ASA”). SkyWest Airlines and ASA are wholly-owned subsidiaries of SkyWest. The dispute is related to the allocation of liability for certain irregular operations (“IROP”) expenses that are paid by SkyWest Airlines and ASA to their passengers under certain situations. As a result of the dispute, Delta unilaterally withheld a combined total of approximately $25 million (pretax) from one of the weekly scheduled wire payments to SkyWest Airlines and ASA during December 2007 and has indicated that Delta does not believe the majority of IROP expenses SkyWest Airlines and ASA have paid on behalf of customers is reimbursable under the Delta Connection Agreements.

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