SkyWest, Bombardier enter into termination agreement

SkyWest Airlines and Bombardier entered (13-Dec-2016) into a termination agreement covering Bombardier's residual value guarantee agreements on 76 CRJ-200 aircraft owned by SkyWest and ExpressJet. Bombardier agreed to pay SkyWest USD90 million by Jan-2017 along with certain other consideration in exchange for the release. The carrier said the termination agreement eliminates both the required sale of each aircraft and the cost of returning the aircraft to mid-time condition, which were "points of risk and uncertainty." SkyWest is evaluating its total 50 seat CRJ-200 fleet and related longlived assets for impairment in 4Q2016. The carrier currently anticipates it will record a non-cash impairment charge of approximately USD440 million to USD490 million on its CRJ200 aircraft and other 50 seat aircraft assets in 4Q2016, net of the USD90 million in cash proceeds from the Bombardier termination agreement. [more - original PR]