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Recent Sale Won't Alter ASA's Plan to Add Flights in Tulsa, Airline Says

Posted on: Thursday, 18 August 2005, 18:00 CDT

Aug. 18--Atlantic Southeast Airlines' plans to add two more flights in Tulsa will stay on track as the company is sold to SkyWest Airlines.

Delta Airlines has agreed to sell ASA to SkyWest for $425 million to help the ailing Delta, the third-largest U.S. airline. The sale must be approved by federal regulatory agencies.

Standard and Poor's on Tuesday listed Delta on "credit watch with negative implications" because of growing concern that the airline is near bankruptcy. Delta has reported close to $10 billion in losses since 2001. In May, Delta allowed ASA to take over all its service in Tulsa. Delta said the use of regional jets would be more profitable to the company. ASA and Delta also operate flights in Oklahoma City. Service at Will Rogers World Airport should not be affected by the sale, airline officials said.

"As a spoke airport, Tulsa is just fitting into the new business model," said Mary Smith, spokeswoman for Tulsa International Airport. "We won't stay fully loaded with mainline jets. We welcome any approach into our market where they can make money and they are going to stay."

In September, ASA will add a flight to Salt Lake City and a flight to Atlanta from Tulsa. SkyWest has a hub in Salt Lake City, and ASA has a hub in Atlanta.

"ASA says it's going to be aggressive about expanding service, and I hope that's the case," Smith said. "We are going to gain seats and frequency to Salt Lake City and frequency to the Atlanta market."

Delta announced the additional flights before the sale to SkyWest was finalized, said Anthony Black, spokesman for Delta Airlines. Officials with SkyWest say they have no immediate plans to change service schedules or personnel.

ASA employees will continue to have union representation, but employee seniority will not be merged. SkyWest employees are not unionized, and ASA pilots and flight attendants are working with an open contract.

SkyWest, based in St. George, Utah, purchased Delta's regional carrier as Delta is struggling to secure enough money for an agreement to continue processing credit cards from Visa International and MasterCard International. The purchase of the Georgia-based airline will give SkyWest access to gates in Atlanta and additional east-bound routes.

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DAL, SKYW,

Source: The Daily Oklahoman

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