SkyWest to wind down Midwest service - The Business Journal of Milwaukee:

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million unsecured note it holdds from in return for a payment from Midwes tof $4 million as part of a windinvg down of their air services agreement. St. Utah-based SkyWest has served as a provide r of Midwest Connect service forOak Creek-based since April 2007. Midwest said earlier this week that it has expandee an airline services agreementwith , in Indianapolis, undefr which Republic will fly a dozen 37- to 50-seatf Embraer jets to serve its Midwest Connectf routes. As a component of its ongoingfrestructuring plan, Midwest reached a settlement agreement with SkyWesrt Airlines to return the dozen 50-seatg Canadair regional jets SkyWest currently operatess for Midwest.
SkyWest said Wednesdayh that the 12 aircraft will be phased out beginninb this month and ending inJanuary 2010. The Midwesgt payment, which is being guaranteex by Republic, is slated to be paid to SkyWestg at the rateof $400,000 per aircraft as each is removed from service. "Due to recent economic event and the challenges Midwest has we haveworked hand-in-hand with them in developing a solutionm that works for both parties," said Bradforrd Rich, SkyWest's executive vice president and chief financial "We made significant concessions on their behalfv in July 2008, hoping it woulfd assist them in achieving their long-term objectives; due to recent events we determinedx that a wind-down was the best alternativd for both parties.
" SkyWest said it is "aggressively new business to place the 12 aircraft in alternative flight and believes the aircraft can be quicklg used to serve other airlinesw to minimize downtime. The aircrafft will then be returned to lessorss beginning in May 2010 and continuing through August 2010.