Skywest Airlines rescue deal stalls

Old Feb 7, 02, 9:09 pm
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Skywest Airlines rescue deal stalls

Posted: Fri, 8 Feb 2002 14:46 AEDT

Skywest Airlines rescue deal stalls
A multimillion dollar Western Australian deal to rescue regional carrier Skywest Airlines from the Ansett collapse, is stalled.

There are worrying similarities with the delay over the sale of Ansett II.

The Skywest deal, accepted by Ansett administrators in December, was due to settle a week ago.

But spokesman and former Skywest chief executive officer Bill Meeke says third party lease agreements are the sticking point.

"Things like the aircraft for example, we really can't operate an airline without aircraft so that matter has to be finalised and that has been causing problems," he said.

Another nasty surprise awaits the new owners - a potentially massive increase in insurance premiums in the aftermath of September 11.

The consortium is meeting today with administrators Andersen in a bid to resolve the outstanding issues.

Mr Meeke says investors remain confident, but cannot wait forever.

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