SkyWest Airlines 2009 Annual Report Download - page 17

As of December 31, 2009, SkyWest Airlines scheduled 10 daily flights as an AirTran carrier to or
from Milwaukee International Airport.
Our flight schedules are structured to facilitate the connection of our passengers with flights of our
major partners at the airports we serve.
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 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
and United provide for fuel used in the performance of the code-share agreements to be reimbursed by
our major partners, thereby reducing our exposure to fuel price fluctuations. United purchased fuel
directly from a fuel vendor for our United Express aircraft under contract operated out of Chicago,
San Francisco, Los Angeles and Denver; Midwest purchased all of the fuel for our Midwest aircraft
directly from Midwest’s fuel vendors and as of June 1, 2009, Delta purchased the majority of the fuel
for our Delta aircraft under contract directly from its fuel vendors. During the year ended
December 31, 2009, approximately 92.2% of our fuel purchases were associated with our Delta and
United code-share agreements and were reimbursed by our major partners. 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, 2009, SkyWest and SkyWest Airlines collectively employed 8,654 full-time
equivalent employees consisting of 4,232 pilots and flight attendants, 2,833 customer service personnel,
1,106 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. If unionization efforts are successful, we may
be subjected to risks of work interruption or stoppage and/or incur additional expenses associated with
increased union representation of our employees. SkyWest Airlines has never experienced a work
stoppage due to a strike or other labor dispute, and we consider SkyWest Airlines’ relationships with its
employees to be good.
As of December 31, 2009, ASA employed approximately 3,604 full-time equivalent employees
consisting of 2,227 pilots and flight attendants, 240 customer service personnel, 901 mechanics and
other maintenance personnel, and 236 administration and support personnel. Three of ASA’s employee
groups are represented by unions. ASA’s pilots are represented by the Air Line Pilots Association
International, ASA’s flight attendants are represented by the Association of Flight Attendants—CNA,
and ASA’s flight controllers are represented by the Professional Airline Flight Control Association.
ASA’s collective bargaining agreement with its pilots will become amendable on November 20, 2010.
ASA’s collective bargaining agreement with its flight attendants will become amendable in July 20, 2011.
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