SkyWest Airlines 2005 Annual Report Download - page 29

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25
• ASA leases smaller aircraft line maintenance facilities in Atlanta, Georgia; Salt Lake City, Utah; Columbia, South
Carolina; Fort Walton Beach, Florida; Montgomery, Alabama; and Shreveport, Louisiana.
• ASA uses 26 gates at the Hartsfield-Jackson Atlanta International Airport: 13 gates are leased directly from the airport
authority, six gates are subleased from US Air, five gates are subleased from Delta and two gates are used pursuant to a
month-to-month arrangement. ASA intends to lease from Delta three additional gates effective December 1, 2005.
• ASA 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 ASA personnel. Other airlines, including Delta, provide ticket
handling and/or ground support services for ASA in 84 of 123 airports ASA serves.
Our management deems SkyWest Airlines’ and ASA’s current facilities as being suitable and necessary to support
existing operations and believes these facilities will be adequate for the foreseeable future.
ITEM 3. LEGAL PROCEEDINGS
We are subject to certain legal actions which we consider routine to our business activities. As of December 31, 2005,
our management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters is not likely to
have a material adverse effect on our financial position, liquidity or results of operations. The most significant of these matters is
summarized below:
Securities and Exchange Commission
Effective January 1, 2002, we changed our method of accounting for CRJ200 engine overhaul expenses. In connection with the
change in accounting method, we restated our financial statements for the year ended December 31, 2001 and the first and second
quarters of the year ended December 31, 2002. The restated financial information, together with a discussion of the change in
accounting method, was presented in Amendment No. 1 on our Form 10-K/A for the year ended December 31, 2001 and
Amendments No. 1 on our Forms 10-Q/A for the quarters ended June 30, 2002 and June 30, 2002. The staff of the SEC is currently
conducting an investigation of the facts pertaining to the change in our accounting method and other changes presented in the
restatement of our financial statements. We do not believe that any of the matters under investigation constitute a violation of law. In
June 2005, after extensive discussions with the SEC staff, we presented to the SEC an offer to enter into a cease and desist order
pursuant to which we would agree not to violate federal securities laws in the future. The SEC is currently evaluating our proposal;
however, there can be no assurance that our offer will be accepted. We continue to cooperate with the SEC in an effort to resolve the
investigation.
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, 2005.