SkyWest Airlines 2006 Annual Report Download - page 31

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25
Risks Related to Our Common Stock
We can issue additional shares without shareholder approval.
Our Restated Articles of Incorporation, as amended (the “Restated Articles”), authorizethe issuance
of up to 120,000,000 shares of common stock, all of which may be issued without anyaction or approval by
our shareholders. As of December 31, 2006, we had 63,958,618 shares outstanding, netof treasury shares.
In addition, as of December 31, 2006, we had equity-based incentive plans under which 4,801,537 shares
are reserved for issuance and an employee stockpurchase plan under which 2,338,631 shares arereserved
for issuance, both of which may dilutethe ownership interest of our stockholders. Our Restated Articles
also authorize the issuance of up to 5,000,000 shares of preferred stock. Our boardof directors hasthe
authority to issuepreferred stock with the rights and preferences, and at the price, which it determines.
Any shares of preferredstock issued would likely be senior to shares of our common stock in various
regards, including dividends,payments upon liquidation and voting. Thevalue of our common stock could
be negatively affected by theissuance of any shares of preferred stock.
Distribution of dividends may decrease or cease.
Historically, we have paid dividends in varying amounts on our common stock. The future payment
andamount of cash dividendswill depend upon our financialconditionandresultsofoperations, loan
covenantsand otherfactors deemed relevantby our boardof directors.There can be no assurance that we
will continue our practice of paying dividendsonour common stock or that we will have the financial
resources to paysuch dividends.
Provisions of our charter documents and code-share agreements may affect the ability or desire of others
to gain control of our company.
Our ability to issue preferred and common shares without shareholder approval mayhave theeffect of
delaying or preventing a change in control and may adversely affect thevoting and other rights of the
holders of our common stock, even in circumstances where such a change in control would be viewed as
desirable by most investors. The provisions of the Utah Control Shares Acquisition Act may also
discourage the acquisition of asignificant interest in or controlof our company.Additionally,our code-
shareagreements contain termination and extension trigger provisions related to changeincontroltype
transactions that mayhave the effect of deterring a change in control of ourcompany.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None
ITEM 2. PROPERTIES
Flight Equipment
As of December 31,2006, we owned or leased a fleet of aircraft, consistingof the following types of
aircraft:
Aircraft Type
Number of
Owned Aircraft
Number of
Leased Aircraft
Passenger
Capacity
Scheduled Flight
Range (miles)
Average Cruising
Speed (mph)
Average Age
(years)
CRJ200s. .......... 81 154501,500 530 5.1
CRJ700s. .......... 47 45 70 1,600 530 2.1
CRJ900s. .......... —9901,500 530 0.3
Brasilia Turboprops .14 48 30 300 300 9.9
ATR-72
Turboprops ...... —12 66 300 300 13.2