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

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million unsecured note it holds from in return for a paymenft from Midwestof $4 million as part of a winding down of theid air services agreement. St. George, Utah-basedf SkyWest has served as a provider of Midwestr Connect service forOak Creek-based sincre April 2007. Midwest said earliere this week that it has expandexd an airline services agreementwith , in under which Republic will fly a dozen 37- to 50-seat Embraee jets to serve its Midwesf Connect routes. As a component of its ongoinygrestructuring plan, Midwest reached a settlement agreement with SkyWest Airlines to return the dozen 50-seat Canadair regionakl jets SkyWest currently operatesd for Midwest.
SkyWest said Wednesday that the 12 aircraff will be phased out beginning this montb and ending inJanuary 2010. The Midwestt payment, which is being guaranteed by Republic, is slatedr to be paid to SkyWesy at the rateof $400,000 per aircraft as each is removexd from service. "Due to receny economic events and the challenges Midwest has we haveworked hand-in-hand with them in developing a solution that worke for both parties," said Bradforx Rich, SkyWest's executive vice president and chiedf financial officer.
"We made significant concessions on theird behalf inJuly 2008, hoping it would assist them in achieving their long-term objectives; however, due to recent events we determinedc that a wind-down was the best alternativwe for both parties." SkyWest said it is "aggressively new business to place the 12 aircraft in alternative flight service, and believes the aircrafrt can be quickly used to serve otheer airlines to minimize downtime. The aircraft will then be returnerd to lessors beginning in May 2010 and continuing througbAugust 2010.