SkyWest Airlines 2005 Annual Report Download - page 16

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ASA’s flight controllers are represented by the Professional Airline Flight Control Association. The collective bargaining
agreements between ASA and its pilots and flight attendants became amendable September 15, 2002 and September 26, 2003,
respectively. ASA has been negotiating with the pilots and flight attendants unions since 2002 and 2003, respectively. Each of
these negotiations is currently under the jurisdiction of mediators supplied by the National Mediation Board. The collective
bargaining agreement between ASA and its flight controllers becomes amendable in April 2006. ASA has never experienced a
work stoppage due to a strike or other labor dispute, and considers its relationships with employees to be good.
Government Regulation
All interstate air carriers, including SkyWest Airlines and ASA, are subject to regulation by the DOT, the FAA and other
governmental agencies. Regulations promulgated by the DOT primarily relate to economic aspects of air service. The FAA requires
operating, air worthiness and other certificates; approval of personnel who may engage in flight, maintenance or operating activities;
record-keeping procedures in accordance with FAA requirements; and FAA approval of flight training and retraining programs.
Generally, governmental agencies enforce their regulations through, among other ways, certifications, which are necessary for the
continued operations of SkyWest Airlines and ASA, and proceedings, which can result in civil or criminal penalties or revocation of
operating authority. The FAA can also issue maintenance directives and other mandatory orders relating to, among other things,
grounding of aircraft, inspection of aircraft, installation of new safety-related items and the mandatory removal and replacement of
aircraft parts.
We believe SkyWest Airlines and ASA are operating in compliance with FAA regulations and hold all necessary operating and
airworthiness certificates and licenses. We incur substantial costs in maintaining current certifications and otherwise complying with
the laws, rules and regulations to which SkyWest Airlines and ASA are subject. SkyWest Airlines’ and ASA’s flight operations,
maintenance programs, record keeping and training programs are conducted under FAA approved procedures. SkyWest Airlines and
ASA do not operate at any airports where landing slots are restricted.
All air carriers are required to comply with federal laws and regulations pertaining to noise abatement and engine emissions. All
air carriers are also subject to certain provisions of the Federal Communications Act of 1934, as amended, because of their extensive
use of radio and other communication facilities. SkyWest Airlines and ASA are also subject to certain other federal and state laws
relating to protection of the environment, labor relations and equal employment opportunity. We believe that SkyWest Airlines and
ASA are in compliance in all material respects with these laws and regulations.
Environmental Matters
SkyWest Airlines and ASA are subject to various federal, state, local and foreign laws and regulations relating to environmental
protection matters. These laws and regulations govern such matters as environmental reporting, storage and disposal of materials and
chemicals and aircraft noise. We are, and expect in the future to be, involved in various environmental matters and conditions at, or
related to, our properties. We are not currently subject to any environmental cleanup orders or actions imposed by regulatory
authorities. We are not aware of any active material environmental investigations related to our assets or properties.
Safety and Security
We are committed to the safety and security of our passengers and employees. Since the September 11, 2001 terrorist attacks,
SkyWest Airlines and ASA have taken many steps, both voluntarily and as mandated by governmental agencies, to increase the
safety and security of their operations. Some of the safety and security measures we have taken, along with our code-share partners,
include: aircraft security and surveillance, positive bag matching procedures, enhanced passenger and baggage screening and search
procedures, and securing of cockpit doors. We are committed to complying with future safety and security requirements.
Insurance
SkyWest Airlines and ASA maintain insurance policies that we believe are of types customary in the industry and in amounts we
believe are adequate to protect against material loss. These policies principally provide coverage for public liability, passenger
liability, baggage and cargo liability, property damage, including coverages for loss or damage to our flight equipment, and workers’
compensation insurance. We cannot assure, however, that the amount of insurance we carry will be sufficient to protect us from
material loss.