SkyWest Airlines 2009 Annual Report Download - page 37

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2008, the Court granted in part and denied in part the Motion to Dismiss. The Court denied the
Motion to Dismiss with respect to the breach of contract claim contained in the Complaint. The Court
denied in part the Motion to Dismiss with respect to the action for declaratory judgment contained in
the Complaint, and granted in part the Motion to Dismiss to the extent the Complaint seeks to read
alternative or supplemental obligations created by prior conduct into the Delta Connection
Agreements. The Court granted the Motion to Dismiss with respect to claims for estoppel, unilateral
mistake, and mutual mistake contained in the Complaint. The Court’s ruling affects the current posture
of the case, but does not preclude pursuit of the claim for breach of contract or the claim for
declaratory relief, under which SkyWest Airlines and ASA continue to seek recovery of all amounts
withheld by Delta.
On July 31, 2009, SkyWest Airlines and ASA filed an Amended Complaint in the lawsuit adding
claims under Georgia law for voluntary payment and mutual departure from the strict terms of the
Delta Connection Agreements. Under those theories, SkyWest Airlines and ASA seek recovery of all of
the approximately $25 million withheld by Delta during December 2007. SkyWest Airlines and ASA are
also seeking recovery of additional amounts withheld by Delta subsequent to December 2007. Discovery
on all of SkyWest’s Airlines’ and ASA’s claims and defenses is in process. On September 4, 2009, Delta
filed a motion to dismiss the Amended Complaint in part. Delta asserts that the claims added by
SkyWest Airlines and ASA in the Amended Complaint should be dismissed based on legal arguments
set forth in Delta’s memorandum in support of its motion. On January 22, 2010, the Court granted
Delta’s motion in part, dismissing the claims under Georgia law for voluntary payment and mutual
departure from the strict terms of the Connection Agreements. SkyWest Airlines and ASA have filed
an application seeking an interlocutory appeal of the Court’s order and continue to vigorously pursue
their claims set forth in the Amended Complaint, to the extent permitted by the Court’s ruling on the
Motion to Dismiss, and their defenses to Delta’s counterclaims.
For financial reporting purposes we accrue an estimated loss if the loss is probable and reasonably
estimable. Because these conditions have not been satisfied, we have not recorded a loss related to the
preceding dispute in the consolidated financial statements as of December 31, 2009.
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, 2009.
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