SkyWest Airlines 2010 Annual Report Download - page 21

ExpressJet’s employee groups and on maintaining productive employee relations. The integration of
ExpressJet and Atlantic Southeast workforces will be challenging. Completing the integration of the
workforces of the two airlines will require the resolution of potentially difficult issues relating to
representation of various work groups and the relative seniority of the work groups at each carrier.
Unexpected delays or expenses or other challenges to integrating the workforces could impact the
anticipated synergies from the combination of Atlantic Southeast and ExpressJet and affect our
financial performance.
As of December 31, 2010, SkyWest and SkyWest Airlines collectively employed 9,067 full-time
equivalent employees consisting of 4,475 pilots and flight attendants, 2,956 customer service personnel,
1,146 mechanics and other maintenance personnel, and 490 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. Neither SkyWest nor SkyWest Airlines has ever
experienced a work stoppage due to a strike or other labor dispute, and we consider SkyWest Airlines’
relationships with its employees to be good.
Government Regulation
All interstate air carriers, including SkyWest Airlines, Atlantic Southeast and ExpressJet, are
subject to regulation by the U.S. Department of Transportation (the ‘‘DOT’’), the U.S. Federal
Aviation Administration (the ‘‘FAA’’) and other governmental agencies. Regulations promulgated by the
DOT primarily relate to economic aspects of air service. The FAA requires operating, air worthiness
and other certificates; approval of personnel who may engage in flight, maintenance or operating
activities; record-keeping procedures in accordance with FAA requirements; and FAA approval of flight
training and retraining programs. Generally, governmental agencies enforce their regulations through,
among other ways, certifications, which are necessary for the continued operations of SkyWest Airlines,
Atlantic Southeast and ExpressJet, and proceedings, which can result in civil or criminal penalties or
revocation of operating authority. The FAA can also issue maintenance directives and other mandatory
orders relating to, among other things, grounding of aircraft, inspection of aircraft, installation of new
safety-related items and the mandatory removal and replacement of aircraft parts.
We believe SkyWest Airlines, Atlantic Southeast and ExpressJet are operating in compliance with
FAA regulations and hold all operating and airworthiness certificates and licenses which are necessary
to conduct their respective operations. We incur substantial costs in maintaining current certifications
and otherwise complying with the laws, rules and regulations to which SkyWest Airlines, Atlantic
Southeast and ExpressJet are subject. SkyWest Airlines’, Atlantic Southeast’s and ExpressJet’s flight
operations, maintenance programs, record keeping and training programs are conducted under FAA
approved procedures. SkyWest Airlines, Atlantic Southeast and ExpressJet do not currently operate at
any airports where landing slots are restricted.
All air carriers are required to comply with federal laws and regulations pertaining to noise
abatement and engine emissions. All air carriers are also subject to certain provisions of the Federal
Communications Act of 1934, as amended, because of their extensive use of radio and other
communication facilities. SkyWest Airlines, Atlantic Southeast and ExpressJet are also subject to certain
other federal and state laws relating to protection of the environment, labor relations and equal
employment opportunity. We believe SkyWest Airlines, Atlantic Southeast and ExpressJet are in
compliance in all material respects with these laws and regulations.
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