SkyWest Airlines 2010 Annual Report Download - page 39

• Atlantic Southeast leases from the City of Columbia, South Carolina an aircraft hangar complex
located at the Columbia Metropolitan Airport in Lexington County. The complex includes a
35,350 square-foot hangar, utility and office facility, and 321,098 square feet of ramp and
parking space adjoining the hangar. The lease agreement has a five year term and is scheduled
to expire on June 30, 2015.
• Atlantic Southeast leases from the City of Atlanta Department of Aviation 34 gates and other
premises of the Central Passenger Terminal Complex (CPTC) located on Concourse C and
Concourse D at Hartsfield-Jackson Atlanta International Airport. On September 20, 2010 the
CPTC lease agreement was extended for a seven year term and is currently scheduled to expire
on September 20, 2017.
• Atlantic Southeast leases smaller aircraft line maintenance facilities in Atlanta, Georgia;
Chattanooga, Tennessee and Washington, D.C. (Dulles International Airport).
ExpressJet Facilities
• ExpressJet leases a 42,000 square foot office facility in Houston, Texas, which it has used as its
administrative headquarters. ExpressJet also leases a second building in Houston, Texas, that
consists of 68,000 square feet, of which 18,000 square feet is used for executive and
administrative staff and 50,000 square feet is used by one of ExpressJet’s wholly-owned
subsidiaries for production and warehouse space. To reduce overhead expenses, we moved
executive and administrative staff from this second building to the headquarters building and are
working to sublease the space. Additionally, ExpressJet leases a 57,000 square foot training
center located in Houston, Texas.
• ExpressJet currently operate six major maintenance facilities in Houston, Cleveland, Newark,
Knoxville, Shreveport and Richmond, as well as four satellite line maintenance facilities in other
cities. Additionally, XJT Mexico, Inc., a wholly owned subsidiary of ExpressJet, owns three
buildings consisting of approximately 96,000 square feet of hangar space and 3,000 square feet of
administrative space in Saltillo, Mexico that is leased to another of ExpressJet’s wholly-owned
subsidiaries, Saltillo Jet Center S. de R.L. de C.V., for use in its aircraft painting business.
• ExpressJet leases all of its airport passenger facilities either directly with the airport authorities
or in some cases, through arrangements with Continental, on a net-rental basis. ExpressJet’s
largest operational centers are located at Houston’s George Bush Intercontinental Airport,
which is approximately 155,000 square feet consisting of various passenger loading bridges and
hardstand positions; Cleveland’s Hopkins International Airport, which is approximately 106,000
square feet consisting of passenger loading bridges, hardstand positions and overflow gates; and
Newark Liberty International Airport, which consists of passenger loading bridges and ERJ
compatible gates. In addition, at each of Continental’s three domestic hubs and various other
locations, our passenger and baggage handling space is provided by Continental on varying terms
depending on the prevailing practice at each location.
Our management deems the current facilities of SkyWest, SkyWest Airlines, Atlantic Southeast and
ExpressJet as being suitable to support existing operations and believes these facilities will be adequate
for the foreseeable future.
ITEM 3. LEGAL PROCEEDINGS
We are subject to certain legal actions which we consider routine to our business activities. As of
December 31, 2010, our management believed, after consultation with legal counsel, that the ultimate
outcome of such legal matters is not likely to have a material adverse effect on our financial position,
liquidity or results of operations. However, the following are significant outstanding legal matters,
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