SkyWest Airlines 2005 Annual Report Download - page 28

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24
ATR-72 Turboprops
While ASA currently operates twelve ATR-72 turboprops out of Atlanta, we expect that these aircraft will be removed from
service by August 2007.
Ground Facilities
SkyWest Airlines and ASA own or lease the following principal properties:
SkyWest Airlines Facilities
• SkyWest Airlines owns a 56,600 square foot aircraft maintenance facility in Palm Springs, California
• SkyWest Airlines leases a 131,300 square foot facility at the Salt Lake International Airport. This facility consists of a
58,400 square foot aircraft maintenance hangar and 72,900 square feet of training and office space. In January 2002, we
entered into a sale lease-back agreement with the Salt Lake Airport Authority. Under the agreement, we 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 Airlines 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 40,000 square feet of maintenance facilities and 50,000 square feet of
training and other facilities. We originally constructed the Salt Lake City facility which we subsequently sold to and
leased back from the Salt Lake City Airport Authority. SkyWest Airlines is leasing the facility under an operating lease
arrangement over a 36-year term.
• SkyWest Airlines leases a 90,000 square foot maintenance hanger and a 15,000 square foot office facility in Fresno,
California.
• SkyWest Airlines leases a 28,000 square foot maintenance hanger in Tucson, Arizona.
• SkyWest Airlines 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 those facilities with SkyWest Airlines personnel. Other airlines, including
Delta and United, provide ticket handling and/or ground support services for SkyWest Airlines in 54 of the 121 airports
to which SkyWest Airlines flies.
• We own the corporate headquarters facilities of SkyWest and SkyWest Airlines, located in St. George, Utah, in two
adjacent buildings of 63,000 and 55,000 square feet, respectively. Both facilities were internally funded with cash
generated from operations and were subsequently refinanced with third-party debt.
ASA Facilities
• ASA leases 61,000 square feet in an office building located at the Hartsfield-Jackson Atlanta International Airport which
serves as ASA’s corporate headquarters. The lease expires on April 30, 2008.
• ASA leases a 78,550 square foot aircraft maintenance facility in Macon, Georgia. The Macon facility also contains a
7,500 square foot training and storage facility. The Macon facility is bond-financed, with the lease expiring in 2018.
• ASA leases a 39,000 square foot aircraft maintenance facility in Baton Rouge, Louisiana. ASA has the right to occupy
the Baton Rouge facility rent-free until 2022.
• ASA leases a 63,800 square foot parts storage facility located near the Hartsfield-Jackson Atlanta International Airport.