SkyWest Airlines 2009 Annual Report Download - page 67

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009
(1) Nature of Operations and Summary of Significant Accounting Policies
SkyWest, Inc. (the ‘‘Company’’), through its wholly-owned subsidiaries, SkyWest Airlines, Inc.
(‘‘SkyWest Airlines’’) and Atlantic Southeast Airlines, Inc. (‘‘ASA’’), operates the largest regional airline
in the United States. As of December 31, 2009, SkyWest and ASA offered scheduled passenger and air
freight service with approximately 2,300 total daily departures to 217 different destinations in the
United States, Canada, Mexico and the Caribbean. Additionally, the Company provides ground
handling services for approximately eight other airlines throughout its system. As of December 31,
2009, the Company operated a fleet of 449 aircraft consisting of 250 50-seat Bombardier CRJ200
Regional Jet aircraft (‘‘CRJ200s’’) (81 assigned to United Air Lines, Inc. (‘‘United’’), 164 assigned to
Delta Air Lines, Inc. (‘‘Delta’’), three assigned to Midwest Airlines, Inc. (‘‘Midwest’’) and two assigned
to AirTran, 117 70-seat Bombardier CRJ 700 Regional Jet aircraft (‘‘CRJ700s’’) (66 assigned to United
and 51 assigned to Delta), 31 70-90-seat Bombardier CRJ900 Regional Jet aircraft (‘‘CRJ900’’) (all
assigned to Delta) and 51 Embraer Brasilia EMB-120 turboprops (‘‘Brasilia Turboprops’’) (39 assigned
to United and 12 assigned to Delta) For the year ended December 31, 2009, approximately 55.8% of
the Company’s capacity was operated under the Delta code, approximately 42.4% was operated under
the United code, approximately 1.7% was operated under the Midwest code and approximately 0.1%
was operated under the AirTran code.
SkyWest Airlines has been a partner with Delta in Salt Lake City and United in Los Angeles since
1987 and 1997, respectively. In 1998, SkyWest Airlines expanded its relationship with United to provide
service in Portland, Seattle/Tacoma, San Francisco and additional Los Angeles markets. In 2004,
SkyWest Airlines expanded its United Express operations to provide service in Chicago. In December
2007, SkyWest Airlines and Midwest entered into the Midwest Services Agreement. Effective January 1,
2010, SkyWest Airlines terminated its agreement with Midwest. In December 2009, SkyWest Airlines
entered into a flying agreement with AirTran. SkyWest Airlines currently serves markets from AirTran’s
hub in Milwaukee. As of December 31, 2009, SkyWest Airlines operated as a Delta Connection carrier
in Salt Lake City, a United Express carrier in Los Angeles, San Francisco, Denver, Chicago and the
Pacific Northwest, a Midwest Connect carrier and an AirTran carrier in Milwaukee operating more
than 1,500 total daily flights.
ASA has been a code-share partner with Delta in Atlanta since 1984. ASA expanded its operations
as a Delta Connection carrier to also include Cincinnati and Salt Lake City in September 2002 and
April 2003, respectively. As of December 31, 2009, ASA operated approximately 780 daily flights, all in
the Delta Connection system.
Basis of Presentation
The Company’s consolidated financial statements include the accounts of SkyWest, Inc. and its
wholly-owned subsidiaries, SkyWest Airlines and ASA, with all inter-company transactions and balances
having been eliminated.
In preparing the accompanying consolidated financial statements, the Company has reviewed, as
determined necessary by the Company’s management, events that have occurred after December 31,
2009, up until the issuance of the consolidated financial statements, which occurred on February 22,
2010.
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