SkyWest Airlines 2009 Annual Report Download - page 30

If we incur problems with any of our third-party service providers, our operations could be adversely affected.
Our reliance upon others to provide essential services on behalf of our operations may limit our
ability to control the efficiency and timeliness of contract services. We have entered into agreements
with contractors to provide various facilities and services required for our operations, including fuel
supply and delivery, aircraft maintenance, services and ground facilities, and software and expect to
enter into additional similar agreements in the future. These agreements are generally subject to
termination after notice. Any material problems with the efficiency and timeliness of our automated or
contract services could have a material adverse effect on our business, financial condition and results of
operations.
Interruptions or disruptions in service at one of our hub airports, due to adverse weather or for any other
reason, could have a material adverse impact on our operations.
We currently operate primarily through hubs in Atlanta, Los Angeles, Milwaukee, San Francisco,
Salt Lake City, Chicago, Denver, Cincinnati/Northern Kentucky and the Pacific Northwest. Nearly all of
our flights either originate from or fly into one of these hubs. Our revenues depend primarily on our
completion of flights and secondarily on service factors such as timeliness of departure and arrival. Any
interruptions or disruptions could, therefore, severely and adversely affect us. Extreme weather can
cause flight disruptions, and during periods of storms or adverse weather, fog, low temperatures, etc.,
our flights may be canceled or significantly delayed. Hurricanes Katrina and Rita, in particular, caused
severe disruption to air travel in the affected areas and adversely affected airlines operating in the
region, including ASA. We operate a significant number of flights to and from airports with particular
weather difficulties, including Atlanta, Salt Lake City, Chicago, Milwaukee and Denver. A significant
interruption or disruption in service at one of our hubs, due to adverse weather or otherwise, could
result in the cancellation or delay of a significant portion of our flights and, as a result, could have a
severe adverse impact on our, operations and financial performance.
Our investment in a foreign airline may negatively impact our profitability.
On September 4, 2008, we announced our intention to acquire a 20% interest in a Brazilian
regional airline, Trip Linhas Aereas (‘‘Trip’’), for $30 million. As of December 31, 2009, we had
invested $20 million for a 16.4% interest in Trip, which is recorded under ‘‘Other assets’’ on our
consolidated balance sheet. If Trip meets or exceeds certain financial targets, we are scheduled to make
another $10 million investment on March 1, 2010. There is no assurance that Trip will ultimately
succeed in its business plan. In the event that Trip incurs operating losses or files for bankruptcy, our
investment may have little or no value and our financial results and condition would be negatively
impacted.
Our business could be harmed if we lose the services of our key personnel.
Our business depends upon the efforts of our chief executive officer, Jerry C. Atkin, and our other
key management and operating personnel. We may have difficulty replacing management or other key
personnel who leave and, therefore, the loss of the services of any of these individuals could harm our
business. We do not maintain key-man insurance on any of our executive officers.
Risks Related to the Airline Industry
We may be materially affected by uncertainties in the airline industry.
The airline industry has experienced tremendous challenges in recent years and will likely remain
volatile for the foreseeable future. Among other factors, the financial challenges faced by major
carriers, including Delta and United, the slowing U.S. economy and increased hostilities in Iraq, the
Middle East and other regions have significantly affected, and are likely to continue to affect, the U.S.
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