SkyWest Airlines 2009 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2009 SkyWest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 184

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184

• if SkyWest Airlines’ operations fall below certain performance levels for a period of three
consecutive months;
• subject to limitations imposed by the U.S. Bankruptcy Code, if the other party becomes
insolvent, fails to pay its debts when due, takes action leading to its cessation as a going concern,
makes an assignment of substantially all of its assets, or ceases or suspends operations;
• if bankruptcy proceedings are commenced against the other party (subject to limitations imposed
by the U.S. Bankruptcy Code) and certain specified conditions are not satisfied; or
• if SkyWest Airlines operates, subject to certain exceptions, any additional regional jets or
turboprop aircraft pursuant to a marketing or code-share relationship with any party other than
United to provide hub service at United’s hubs in Chicago (O’Hare), Denver, San Francisco,
Seattle/Tacoma, or Washington, D.C. (Dulles International Airport).
ASA United Express Agreement
On February 10, 2010, ASA and United entered into the ASA United Express Agreement,
pursuant to which ASA has agreed to operate 14 CRJ200 aircraft as a United Express carrier. On
February 11, 2010, ASA began operating as a United Express carrier, and we anticipate that the 14
United Express regional jets to be flown by ASA will be in operation by May of 2010. The ASA United
Express Agreement is a capacity purchase agreement with a five-year term, and other terms which are
generally consistent with the SkyWest Airlines United Express Agreement.
AirTran
On November 4, 2009, SkyWest Airlines entered into a code-share agreement with AirTran. Under
the terms of the code-share agreement, SkyWest Airlines has agreed to operate five CRJ200s for
AirTran under a pro-rate arrangement. SkyWest Airlines commenced AirTran service with two aircraft
in December 2009 and added three additional aircraft in January and February of 2010. The code-share
agreement has a three-year term; however, after May 15, 2010, either party may terminate the
agreement upon 120 days written notice.
Midwest Airline Services Agreement
On June 10, 2009, SkyWest Airlines announced the wind down of the Midwest Services
Agreement. As a result, SkyWest Airlines and Midwest terminated the Midwest Services Agreement on
December 31, 2009 and SkyWest Airlines removed the remaining 12 CRJ200s out of Midwest service
by January 2010.
Markets and Routes
As of December 31, 2009, SkyWest Airlines and ASA scheduled the following daily flights as Delta
Connection carriers: 754 flights to or from Hartsfield- Jackson Atlanta International Airport, 388 flights
to or from Salt Lake City International Airport and 22 flights to or from Cincinnati/Northern Kentucky
International Airport.
As of December 31, 2009, SkyWest Airlines scheduled the following daily flights as a United
Express carrier: 250 flights to or from Chicago O’Hare International Airport, 320 flights to or from
Denver International Airport, 210 flights to or from Los Angeles International Airport, 238 flights to or
from San Francisco International Airport and 42 flights to or from other outlying airports.
As of December 31, 2009, SkyWest Airlines scheduled 20 daily flights as a Midwest Connect
carrier to or from Milwaukee International Airport.
12