SkyWest Airlines 2010 Annual Report Download - page 74

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
(1) Nature of Operations and Summary of Significant Accounting Policies
SkyWest, Inc. (the ‘‘Company’’), through its subsidiaries, SkyWest Airlines, Inc. (‘‘SkyWest
Airlines’’) Atlantic Southeast Airlines, Inc. (‘‘Atlantic Southeast’’) and ExpressJet Airlines Inc.
(‘‘ExpressJet’’), operates the largest regional airline in the United States. As of December 31, 2010,
SkyWest, Atlantic Southeast and ExpressJet offered scheduled passenger and air freight service with
approximately 4,000 total daily departures to different destinations in the United States, Canada,
Mexico and the Caribbean. Additionally, the Company provides ground handling services for other
airlines throughout its system. As of December 31, 2010, the Company had combined fleet of 710
aircraft consisting of the following:
CRJ 200 ERJ 145 CRJ700 CRJ 900 EMB 120 Total
Delta ................................ 150 — 55 31 10 246
United ............................... 99 35 70 — 38 242
Continental ........................... — 206 — — — 206
AirTran .............................. 4 — — — — 4
Maintenance Spare ...................... 3 — — — — 3
Charter .............................. — 3 — — — 3
Subleased to an un-affiliated entity .......... 2 — — — — 2
Subleased to an affiliated entity ............. — — — 4 — 4
Total ................................ 258 244 125 35 48 710
For the year ended December 31, 2010, approximately 47.5% of the Company’s aggregate capacity
was operated under United Express Agreements executed by SkyWest Airlines, Atlantic Southeast and
ExpressJet with United, approximately 46.5% was operated under Delta Connection Agreements
executed by SkyWest Airlines and Atlantic Southeast with Delta, approximately 5.3% was operated
under a capacity purchase agreement (the ‘‘Continental CPA’’) executed between ExpressJet and
Continental and approximately 0.7%% was operated pursuant to a code-share agreement executed
between SkyWest Airlines and AirTran Airways, Inc. (‘‘AirTran’’).
SkyWest Airlines has been a code-share 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. On November 4, 2009, SkyWest Airlines entered into a code-share agreement with AirTran.
As of December 31, 2010, 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, and
an AirTran carrier in Milwaukee, operating more than 1,700 total daily flights.
Atlantic Southeast has been a code-share partner with Delta in Atlanta since 1984 and United
since February 2010. As of December 31, 2010, Atlantic Southeast operated as a Delta Connection
carrier in Atlanta and Cincinnati and a United Express carrier in Chicago and Washington, D.C.
(Dulles International Airport), operating approximately 900 daily flights.
On February 10, 2010, Atlantic Southeast and United entered into a United Express Agreement,
pursuant to which Atlantic Southeast agreed to operate 16 Bombardier Aerospace (‘‘Bombardier’’)
CRJ200 Regional Jets (‘‘CRJ200s’’) as a United Express carrier. As of December 31, 2010, Atlantic
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