SkyWest Airlines 2007 Annual Report Download - page 25

24
• ASA leases ticket counters, check-in and boarding and other facilities in the passenger terminal areas in the
majority of the airports it serves and staffs those facilities with ASA personnel. Other airlines, including Delta,
provide ticket handling and/or ground support services for ASA in 96 of 136 airports ASA serves.
Our management deems SkyWest Airlines’ and ASA’ s current facilities as being suitable and necessary to support
existing operations and believes these facilities will be adequate for the foreseeable future.
ITEM 3. LEGAL PROCEEDINGS
We are subject to certain legal actions which we consider routine to our business activities. As of December 31,
2007, our management believed, after consultation with legal counsel, that the ultimate outcome of such legal matters is not
likely to have a material adverse effect on our financial position, liquidity or results of operations.
Atlantic Southeast Airlines, Inc. and SkyWest Airlines, Inc. v. Delta Air Lines
During the quarter ended December 31, 2007, Delta notified SkyWest, SkyWest Airlines and ASA of a dispute
under the SkyWest Airlines and ASA Delta Connection Agreements. The dispute relates to allocation of liability for certain
irregular operations (“IROP”) expenses that are paid by SkyWest Airlines and ASA to Delta Connection passengers under
certain situations. As a result of the dispute, Delta withheld a combined total of approximately $25 million (pretax) from one
of the weekly scheduled wire payments to SkyWest and ASA during December 2007. On February 1, 2008, SkyWest
Airlines and ASA filed a lawsuit in Georgia state court disputing treatment of the matter. The position Delta has taken with
respect to IROP expenses is inconsistent with the parties’ treatment of those expenses under the SkyWest Airlines and ASA
Delta Connection Agreements since their execution in September 2005. We have not recorded an allowance related to the
dispute in our consolidated financial statements. There can be no assurance that the dispute will be resolved consistent with
the position taken by SkyWest Airlines and ASA. If the dispute is not resolved consistent with the position taken by SkyWest
Airlines and ASA, our financial results would be negatively impacted. The litigation may have other negative effects on our
relationship with Delta and our operations under the existing Delta Connection Agreements.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth quarter of the year ended December 31,
2007.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
Market Price for Our Common Stock
Our common stock is traded on The Nasdaq National Market under the symbol “SKYW.” At February 18, 2008,
there were approximately 1,080 stockholders of record. Securities held of record do not include shares held in securities
position listings. The following table sets forth the range of high and low closing sales prices for our common stock, during
the periods indicated.
2007 2006
Quarter High Low High Low
First................................................................................................. $28.43 $24.70 $29.79 $26.02
Second ............................................................................................ 28.17 23.83 29.46 21.46
Third............................................................................................... 25.44 21.94 25.99 22.12
Fourth ............................................................................................. 28.99 23.75 28.05 24.60
The transfer agent for our common stock is Zions First National Bank, Salt Lake City, Utah.