Aero Engines LLC Enters Long-Term Lease Agreement for Portfolio of CF34 Engines

Aero Engines LLC., the Joint Venture between SkyWest, Inc. ("SkyWest") and Regional One, Inc. ("Regional One"), a subsidiary of Exchange Income Corporation, has entered into an agreement to lease its current portfolio of 14 CF34 engines for a 10-year term. The engines are being paired up with CRJ700 airframes owned by Regional One and will be leased for 10 years to a US operator. These assets are expected to enter lease in phases between now and June 2020, with the first commencing this month.

"The execution of this initial transaction demonstrates the value of this venture to the industry and to our leasing business," said Wade Steel, SkyWest Chief Commercial Officer and Manager of Aero Engines LLC. "We look forward to continuing to develop these opportunities within our operational scope under this partnership."

"We are very pleased with this first Joint Venture transaction, which has also enabled Regional One to generate long-term revenue streams for its CRJ700 airframes," said Hank Gibson, Regional One's President. "This transaction successfully achieves our entity's strategic objective: to combine our market expertise with SkyWest's depth of knowledge and experience as the largest operator of CRJ aircraft."