SkyWest Airlines 2010 Annual Report Download - page 22

Environmental Matters
SkyWest, SkyWest Airlines, Atlantic Southeast and ExpressJet are subject to various federal, state,
local and foreign laws and regulations relating to environmental protection matters. These laws and
regulations govern such matters as environmental reporting, storage and disposal of materials and
chemicals and aircraft noise. We are, and expect in the future to be, involved in various environmental
matters and conditions at, or related to, our properties. We are not currently subject to any
environmental cleanup orders or actions imposed by regulatory authorities. We are not aware of any
active material environmental investigations related to our assets or properties.
Safety and Security
We are committed to the safety and security of our passengers and employees. Since the
September 11, 2001 terrorist attacks, SkyWest Airlines, Atlantic Southeast and ExpressJet have taken
many steps, both voluntarily and as mandated by governmental agencies, to increase the safety and
security of their operations. Some of the safety and security measures we have taken with our
code-share partners include: aircraft security and surveillance, positive bag matching procedures,
enhanced passenger and baggage screening and search procedures, and securing of cockpit doors. We
are committed to complying with future safety and security requirements.
Insurance
SkyWest, SkyWest Airlines, Atlantic Southeast and ExpressJet maintain insurance policies we
believe are of types customary in the industry and in amounts we believe are adequate to protect
against material loss. These policies principally provide coverage for public liability, passenger liability,
baggage and cargo liability, property damage, including coverages for loss or damage to our flight
equipment, and workers’ compensation insurance. We cannot assure, however, that the amount of
insurance we carry will be sufficient to protect us from material loss.
Seasonality
Our results of operations for any interim period are not necessarily indicative of those for the
entire year, since the airline industry is subject to seasonal fluctuations and general economic
conditions. Our operations are somewhat favorably affected by pleasure travel on our pro-rate routes,
historically contributing to increased travel in the summer months, and are unfavorably affected by
decreased business travel during the months from November through January and by inclement
weather which occasionally results in cancelled flights, principally during the winter months.
ITEM 1A. RISK FACTORS
In addition to factors discussed elsewhere in this Report, the following are important risks which could
adversely affect our future results. Additional risks and uncertainties not presently known to us or that we
currently do not deem material may also impair our business operations. If any of the risks we describe
below occur, or if any unforeseen risk develops, our operating results may suffer, our financial condition may
deteriorate, the trading price of our common stock may decline and investors could lose all or part of their
investment in us.
Risks Related to Our Operations
We are highly dependent on Delta, United and Continental.
If any of our code-share agreements with Delta, United or Continental are terminated, we would
be significantly impacted and likely would not have an immediate source of revenue or earnings to
offset such loss. A termination of any of these agreements would likely have a material adverse effect
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