SkyWest Orders 100 Mitsubishi Regional Jets

July 11, 2012

Bookmark and Share

US regional carrier SkyWest has reached an agreement to buy 100 Mitsubishi Regional Jets in a deal with a potential value of USD$4 billion at list prices, the companies announced on Wednesday at the Farnborough Airshow.

Brad Rich, president of SkyWest, said a majority of the Mitsubishi jets would be used to replace aircraft. His company has about 725 planes.

"We're trying to be very proactive in two ways," Rich said. "We're trying to use our size and our volume to restructure and recreate an aircraft model that will deliver more of what our major partners are requiring today and trying to combine that with the new technology that is coming on to market."

Under terms of the deal, Mitsubishi Aircraft would start delivery of the jets in 2017 and complete them in 2020. The MRJ, a family of 70- to 90-seat jets, is the first new airliner produced in Japan in nearly 50 years.

Mitsubishi Aircraft is financed by companies including Mitsubishi Heavy Industries and Toyota Motor.

The agreement is also a boost for Pratt & Whitney, whose geared turbofan engines will power the Mitsubishi jets.

SkyWest operates as United Express and Delta Connection under agreements with United Continental and Delta Air Lines.

(Reuters)