SkyWest Airlines 2007 Annual Report Download - page 22

21
Risks Related to Our Common Stock
We can issue additional shares without shareholder approval.
Our Restated Articles of Incorporation, as amended (the “Restated Articles”), authorize the issuance of up to
120,000,000 shares of common stock, all of which may be issued without any action or approval by our shareholders. As of
December 31, 2007, we had 60,478,615 shares outstanding. In addition, as of December 31, 2007, we had equity-based
incentive plans under which 3,600,448 shares are reserved for issuance and an employee stock purchase plan under which
1,884,469 shares are reserved for issuance, both of which may dilute the ownership interest of our shareholders. Our Restated
Articles also authorize the issuance of up to 5,000,000 shares of preferred stock. Our board of directors has the authority to
issue preferred stock with the rights and preferences, and at the price, which it determines. Any shares of preferred stock
issued would likely be senior to shares of our common stock in various regards, including dividends, payments upon
liquidation and voting. The value of our common stock could be negatively affected by the issuance 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 and amount of
cash dividends will depend upon our financial condition and results of operations, loan covenants and other factors deemed
relevant by our board of directors. There can be no assurance that we will continue our practice of paying dividends on our
common stock or that we will have the financial resources to pay such 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 may have the effect of delaying or
preventing a change in control and may adversely affect the voting 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 Acquisitions Act may also discourage the acquisition of a significant interest in or control of our company.
Additionally, our code-share agreements contain termination and extension trigger provisions related to change in control
type transactions that may have the effect of deterring a change in control of our company.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None
ITEM 2. PROPERTIES
Flight Equipment
As of December 31, 2007, we owned or leased a fleet of aircraft, consisting of 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....................................... 82 164 50 1,500 530 6.2
CRJ700s....................................... 48 54 70 1,600 530 3.3
CRJ900s....................................... 7 10 90 1,500 530 1.1
Brasilia Turboprops ..................... 12 47 30 300 300 10.7
ATR-72 Turboprops .................... — 12 66 300 300 14.2
SkyWest Airlines has firm orders to acquire 18 new CRJ700s, four new CRJ900s and four used CRJ 200s. In
addition, we intend to sublease two additional CRJ700s from Delta during the year ending December 31, 2008. Gross
committed expenditures for these 28 aircraft and related equipment, including estimated amounts for contractual price
escalations will be approximately $557.8 million through the first quarter of 2010. SkyWest Airlines and ASA have also
obtained combined options for another 22 Bombardier Regional Jets that can be delivered in either 70 or 90-seat
configurations.