The parent of SkyWest Airlines and Atlantic Southeast Airlines said Tuesday it reached an agreement with United Airlines involving operational funding and a codeshare arrangement.
SkyWest Inc. said SkyWest Airlines extended to United, a unit of UAL Corp., a secured term loan of $80 million at an interest rate of 11 percent.
The term loan is secured by certain ground equipment and airport slot rights held by United. SkyWest Airlines also agreed to defer certain amounts otherwise payable to SkyWest Airlines under the existing United Express Agreement. The maximum deferral amount is $49 million and any amounts so deferred accrue a deferral fee of 8%, payable weekly. United's right to defer such payments is scheduled to terminate in ten years.
source
MSN
Reuters
