SkyWest Airlines 2010 Annual Report Download - page 18

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Detroit International Airport and 20 flights to or from Cincinnati/Northern Kentucky International
Airport.
As of December 31, 2010, SkyWest Airlines, Atlantic Southeast and ExpressJet scheduled the
following daily flights as a United Express carrier: 460 flights to or from Chicago O’Hare International
Airport, 376 flights to or from Denver International Airport, 256 flights to or from Los Angeles
International Airport, 276 flights to or from San Francisco International Airport, 122 flights to or from
Washington Dulles and 64 flights to or from other outlying airports.
As of December 31, 2010, ExpressJet scheduled the following daily flights as a Continental Express
carrier: 620 flights to or from Houston International Airport, 168 flights to or from Cleveland
International Airport and 296 flights to or from Newark International Airport.
As of December 31, 2010, SkyWest Airlines scheduled 56 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, Atlantic Southeast and ExpressJet 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, Atlantic Southeast and ExpressJet
crew members and maintenance personnel at their respective training facilities. SkyWest Airlines,
Atlantic Southeast and ExpressJet 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,
United and Continental 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 fuel vendors for our United Express aircraft under contract operated out
of Chicago, San Francisco, Los Angeles and Denver; Continental purchased all of the fuel for our
Continental aircraft directly from Continental’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, 2010, approximately 76% of our fuel purchases were associated with our
Delta and United code-share agreements and were reimbursed or paid directly by our major partners
and approximately 24% of our fuel purchases were associated with our pro-rate operations. 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 or liquidity.
14