SkyWest Airlines 2003 Annual Report Download - page 15

Ground Facilities
Employees of SkyWest perform substantially all routine airframe and engine maintenance and periodic inspection of equipment.
Maintenance is performed primarily at facilities in Palm Springs, California; Salt Lake City, Utah; and Fresno, California.
SkyWest owns a 56,600 square foot maintenance facility in Palm Springs, California and leases a 90,000 square foot aircraft
maintenance and training facility at the Salt Lake City International Airport. The Salt Lake City facility consists of a 40,000
square foot maintenance hangar and 50,000 square feet of training and other facilities. The Salt Lake City facility was originally
constructed by the Company and sold to and leased back from the Salt Lake City Airport Authority. SkyWest is leasing the
facility under an operating lease arrangement over a 36-year term. The Company also leases a 90,000 square foot maintenance
hanger and 15,000 square foot office facility in Fresno, California. During July 2002, the Company entered into a new lease
agreement for a 28,000 square foot maintenance hanger in Tucson, Arizona. SkyWest finished construction on an additional
aircraft maintenance and training facility in Salt Lake City during November 2001. This facility is 131,300 square feet, consisting
of a 58,400 square foot maintenance hangar and 72,900 square feet of training and office space. In January 2002, the Company
entered into a sale lease-back agreement with the Salt Lake Airport Authority. Under the agreement the Company received
approximately $18 million in cash in exchange for the newly constructed facility and entered into a 26 year operating lease
agreement. The sales price was equal to the construction costs and no gain or loss was recognized. SkyWest leases ticket counters,
check-in and boarding and other facilities in the passenger terminal areas in the majority of the airports it serves and staffs these
facilities with SkyWest personnel. Delta and United provide ticket handling and/or ground support services for SkyWest in 53 of
the 105 airports SkyWest serves.
The Company's corporate headquarters are located in a 63,000 square foot building and a newly constructed 55,000 square foot
building in St. George, Utah. The newly constructed facility is adjacent to the old office building and includes office space for
maintenance management and flight operations including pilot management, dispatch and flight attendant management. Both
facilities are owned by the Company and were internally funded with cash generated from operations and were subsequently
refinanced with third-party debt. Management deems the Company's current facilities as being suitable and necessary to support
existing operations and believes the Company's facilities will be adequate for the foreseeable future.
ITEM 3. LEGAL PROCEEDINGS
The Company is subject to certain legal actions, which it considers routine to its business activities. As of December 31, 2003,
management believes, after the consultation with legal counsel, that the ultimate outcome of such legal matters will not have a
material adverse effect on the Company's financial position, liquidity or results of operations.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter of the year ended December 31, 2003.
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