August 5, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — SkyWest, Inc. (NASDAQ: SKYW) said that it has entered into a definitive merger agreement with ExpressJet Holdings, Inc. (NYSE: XJT) under which Atlantic Southeast Airlines, Inc., SkyWest's wholly-owned subsidiary, will acquire all of the outstanding shares of common stock of ExpressJet Holdings, Inc. for $6.75 per share in cash, representing a net purchase price of around $133 million after giving effect for shares already owned by Atlantic Southeast.

ExpressJet's primary operating entity is ExpressJet Airlines, Inc. The definitive merger agreement has been unanimously approved by the SkyWest and ExpressJet boards of directors.

SkyWest said that the transaction is not subject to financing conditions, but is subject to receipt of certain regulatory approvals, approval of ExpressJet stockholders and other customary conditions. The parties said they currently anticipate that the transaction will close during the fourth quarter of 2010.

Atlantic Southeast has negotiated the principal terms of a new, long-term, capacity purchase agreement with Continental Airlines, Inc., which is intended to become effective upon consummation of the ExpressJet merger.

Upon completion of the merger, ExpressJet will become a wholly-owned subsidiary of Atlantic Southeast, with the intention of combining the operations of ExpressJet Airlines and Atlantic Southeast, subject to receipt of necessary regulatory approvals, and utilizing Atlantic Southeast's existing facilities in Atlanta, Georgia as the operating headquarters of the combined company.

The parties anticipate that both airlines will continue to operate under separate airline operating certificates until the regulatory process can be completed for combining the airlines under a single operating certificate.

Atlantic Southeast, based in Atlanta, Georgia, and SkyWest Airlines, Inc., based in St. George, Utah, are wholly-owned subsidiaries of SkyWest.

Atlantic Southeast operates as a Delta Connection carrier under a contractual agreement with Delta Air Lines and as a United Express carrier under a contractual agreement with United Air Lines.

SkyWest Airlines operates as United Express and Delta Connection carriers under contractual agreements with United and Delta, respectively. SkyWest Airlines also has a marketing agreement with AirTran Airways, Inc.

System-wide, SkyWest currently serves a total of around 225 cities in the United States, Canada, Mexico and the Caribbean, with around 2,800 daily departures.

Texas-based ExpressJet’s subsidiaries include ExpressJet Airlines, Inc. and ExpressJet Services, LLC.

ExpressJet Airlines serves 134 scheduled destinations in North America and the Caribbean with around 1,200 departures per day. Operations include capacity purchase agreements for United and Continental, as well as providing clients customized 50-seat charter options; and supplying third-party aviation and ground handling services.

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