SkyWest Airlines 2005 Annual Report Download - page 63

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70 or 90-seat configurations. The Company presently anticipates that delivery dates for these aircraft could start in May 2007 and
continue through April 2010; however, actual delivery dates remain subject to final determination as agreed upon by the
Company and its code-share partners.
Legal Matters
The Company is subject to certain legal actions which it considers routine to its business activities. As of December 31, 2005,
management believes, after consultation with legal counsel, that the ultimate outcome of such legal matters is not likely to have a
material adverse effect on the Company’s financial position, liquidity or results of operations.
Concentration Risk and Significant Customers
The Company requires no collateral from its major partners or customers but monitors the financial condition of its major
partners. The Company maintains an allowance for doubtful accounts receivable based upon expected collectability of all
accounts receivable. The Company’s allowance for doubtful accounts totaled $58,000 and $24,000 as of December 31, 2005 and
2004, respectively. For the years ended December 31, 2005, 2004 and 2003, the Company’s contractual relationships with Delta
and United combined accounted for approximately 98.5% of the Company’s total revenues.
Employees
As of December 31, 2005 SkyWest and SkyWest Airlines collectively employed 8,095 full-time equivalent employees
consisting of 3,480 pilots and flight attendants, 3,303 customer service personnel, 843 mechanics and other maintenance
personnel, and 469 administration and support personnel. None of these employees are currently represented by a union. We are
aware, however, that collective bargaining group organization efforts among SkyWest Airlines’ employees occur from time to
time and we anticipate that such efforts will continue in the future. During 2004, SkyWest Airlines’ pilots voted against a
resolution to join an officially recognized union. Under governing rules, SkyWest Airlines’ pilots may again vote on this issue at
any time because one year has passed since the previous vote. If unionization efforts are successful, we may be subjected to risks
of work interruption or stoppage and/or incur additional expenses associated with increased union representation of our
employees. SkyWest Airlines has never experienced a work stoppage due to a strike or other labor dispute, and we consider
SkyWest Airlines’ relationships with its employees to be good.
As of December 31, 2005, ASA employed approximately 5,552 full-time equivalent employees consisting of 2,481 pilots and
flight attendants, 1,747 customer service personnel, 895 mechanics and other maintenance personnel, and 429 administration and
support personnel. Three of ASA’s employee groups are represented by unions. ASA’s pilots are represented by the Air Line
Pilots Association International, ASA’s flight attendants are represented by the Association of Flight Attendants – CWA, and
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.
Allowance against receivable
The Company currently has a dispute with one of its major partners regarding the calculation of certain revenues. Due to the
dispute, the Company has recorded certain reserves against the applicable revenues and receivable until such time the dispute is
resolved.
(6) Capital Transactions
Preferred Stock
The Company is authorized to issue 5,000,000 shares of preferred stock in one or more series without shareholder approval.
No shares of preferred stock are presently outstanding. The Company’s Board of Directors is authorized, without any further