SkyWest Airlines 2006 Annual Report Download - page 21

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As of December31, 2006, ASA employed approximately 5,658 full-time equivalent employees
consistingof 2,376 pilots andflightattendants, 2,135 customer service personnel, 853mechanics and other
maintenancepersonnel, and 294administration and support personnel. Three of ASA’s employee groups
are represented by unions. ASA’s pilots arerepresented by theAir Line Pilots Association International,
ASA’s flight attendants are represented by the Association of Flight Attendants—CWA, and ASA’s flight
controllers arerepresented by the Professional Airline Flight Control Association. The collective
bargainingagreements between ASA and its pilots andflight attendants became amendableSeptember 15,
2002 and September 26, 2003, respectively. ASA has been negotiatingwith 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 collectivebargaining agreement between ASA
and its flight controllers became amendablein April 2006. ASAhasnever experienced a work
stoppage dueto a strikeor other labor dispute, and considers its relationships with employees to be good.
GovernmentRegulation
All interstate aircarriers, including SkyWest Airlines andASA, aresubject to regulation by the U.S.
Department of Transportation (the“DOT”), theU.S. Federal Aviation Administration (the “FAA”) and
other governmental agencies. Regulations promulgatedby the DOTprimarily relate to economic aspects
of airservice. TheFAA requires operating, air worthiness and other certificates; approval of personnel
whomayengage in flight, maintenance or operating activities; record-keeping procedures in accordance
with FAA requirements; andFAA approval of flight training and retraining programs. Generally,
governmental agencies enforce theirregulations through, amongother 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 canalso issue maintenance
directives and othermandatory 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 operatingincompliance with FAA regulations and hold all
necessary operating and airworthinesscertificates and licenses. We incur substantial costs in maintaining
current certifications and otherwise complying with the laws, rules and regulations to which SkyWest
Airlines andASAaresubject. SkyWest Airlines’ and ASA’s flight operations, maintenance programs,
record keeping and training programs are conducted under FAAapprovedprocedures. SkyWest Airlines
and ASA do notoperateat any airports where landing slots are restricted.
All air carriers are required to complywithfederal laws and regulationspertaining to noise abatement
and engine emissions. All air carriers are also subjectto certain provisions of theFederal Communications
Act of 1934, as amended, because of their extensive useofradio 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 employmentopportunity. We believe that SkyWest Airlines
and ASA are in compliance in all material respects with these laws and regulations.
Environmental Matters
SkyWest Airlinesand ASA aresubject to various federal,state,local and foreign laws andregulations
relating to environmental protection matters. These laws and regulations govern such matters as
environmental reporting, storage and disposalof materials and chemicals and aircraft noise. We are, and
expect in the futuretobe, involvedin various environmental mattersand conditions at, or related to,our
properties. We are not currentlysubjecttoany environmental cleanup orders or actionsimposedby
regulatory authorities. We are not aware of any active material environmental investigations related to our
assets or properties.