From Will Horton (CAPA Aviation)
The Virgin/Skywest deal was four -500s (three delivered so far), four -600s (to be delivered starting next year), and options on five -600s. Leasing company “Aviation” owns the aircraft, which are operated by Skywest for Virgin — an arrangement conducted as Virgin did not have the time and resources, particularly pilot training, to launch its own operation. This deal has since caused some friction between Virgin and Skywest as their CEOs disagree over how/where the ATRs should be deployed. Virgin envisions one day operating its ATRs by itself without Skywest, with some potentially interesting tie-ins and synergies with Air New Zealand, who last week ordered 12 ATR72-600s to complement its -500 fleet and is keen to work with Virgin.
The Skywest operation has cost commands and base transfers at Virgin Australia and if they had of taken a few of the pilots who put in EOI's it would have shown the Virgin pilot group that Skywest pilots understood the situation and perhaps opened the door for movement from the ATR into Virgin Australia. Instead the actions taken have now rocked the boat of the second biggest pilot group in Australia and both VIPA and the AFAP have put clauses in their log of claims for Virgin Australia's new EBA to ensure it doesn't happen again.
As you can see from what Will wrote, the only reason Skywest got the gig was due to a resource issue. The routes and bases (and size) will depend on where Virgin want's the aircraft to go. Some of these routes will always be turboprop routes while others will grow to be all jet or a mix of both. The contract between Virgin and Skywest will have get out clauses for both parties should they decide to end it before the 10 years (almost 9 years now) are up.