SkyWest Airlines 2007 Annual Report Download - page 13

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12
Current Combined Route System:
Training and Aircraft Maintenance
SkyWest Airlines’ and ASA’ s employees perform substantially all routine airframe and engine maintenance and
periodic inspection of equipment at their respective maintenance facilities, and provide substantially all training to SkyWest
Airlines and ASA crew members and maintenance personnel at their respective training facilities. SkyWest Airlines and ASA
also contract with third party vendors for non-routine airframe and engine maintenance.
Fuel
Historically, we have not experienced problems with the availability of fuel, and believe that we will be able to
obtain fuel in quantities sufficient to meet our existing and anticipated future requirements at competitive prices. Standard
industry contracts generally do not provide protection against fuel price increases, nor do they ensure availability of supply.
However, our code-share agreements with Delta, United and Midwest allow fuel used in the performance of the code-share
agreements to be reimbursed by our major partner, thereby reducing our exposure to fuel price fluctuations. During the year
ended December 31, 2007, approximately 97.4% of our fuel purchases were associated with our Delta, United and Midwest
code-share agreements. A substantial increase in the price of jet fuel, to the extent our fuel costs are not reimbursed, or the
lack of adequate fuel supplies in the future, could have a material adverse effect on our business, financial condition, results
of operations and liquidity.
Employees
As of December 31, 2007, SkyWest and SkyWest Airlines collectively employed 10,249 full-time equivalent
employees consisting of 4,587 pilots and flight attendants, 4,084 customer service personnel, 1,095 mechanics and other
maintenance personnel, and 483 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 2007, SkyWest Airlines’ pilots
voted against a resolution to join an officially recognized union. Under governing rules, SkyWest Airlines’ pilots may again