Regional airline SkyWest has acquired a 25% stake in Tennessee-based commuter carrier Contour Airlines for $25 million.
The move, said CEO Chip Childs during SkyWest's Q4 earnings call on Thursday, is geared toward enabling the company to make more use of its fleet of Bombardier CRJ200 aircraft while providing more opportunity for SkyWest pilots to accrue flight hours toward becoming a captain.
SkyWest is short approximately 500 captains compared to before the pandemic. The shortage is hampering SkyWest's ability to grow operations for its major airline partners. SkyWest is the largest regional airline in the U.S., operating routes for American Eagle, Delta Connection, United Express and Alaska Airlines.
SkyWest also has a pending application with the Department of Transportation to fly regularly scheduled public charters with CRJ200 aircraft. Under the proposal, SkyWest Charters would fly as its own brand.
The CRJ200s, which can transport up to 50 passengers, would be configured with just 30 seats, which is the maximum number of seats allowed for certified operators of public charters.
Contour also has CRJ200s configured with 30 seats and flies regional routes using public charter authority.
SkyWest's charter application has been under review since June 2022. It appears to be held up by a broader FAA process that could result in a reworking of the regulations that govern public charters so that the largest such operators, most notably JSX, have to adhere to the same security and safety requirements as commercial airlines.
Under SkyWest's agreement with Contour, SkyWest will provide aircraft for use by Contour, which flies several regional routes.