SkyWest Airlines 2010 Annual Report Download - page 9

regional jet (‘‘ERJ145’’). We also operate the 30-seat Embraer Brasilia EMB-120 turboprop (the
‘‘Brasilia turboprop’’).
We were incorporated in Utah in 1972. Our principal executive offices are located at 444 South
River Road, St. George, Utah 84790, and our primary telephone number is [phone]. We
maintain an Internet web site at www.skywest.com. Our website provides a link to the web site of the
SEC, through which our annual, quarterly and current reports, as well as amendments to those reports,
are available. In addition, we provide electronic or paper copies of our filings free of charge upon
request.
Our Operating Platforms
SkyWest Airlines
SkyWest Airlines provides regional jet and turboprop service primarily located in the midwestern
and western United States. SkyWest Airlines offered approximately 1,700 daily scheduled departures as
of December 31, 2010, of which approximately 1,180 were United Express flights, 490 were Delta
Connection flights and 30 were AirTran-coded flights. SkyWest Airlines’ operations are conducted from
hubs located in Chicago (O’Hare), Denver, Los Angeles, Milwaukee, San Francisco and Salt Lake City.
SkyWest Airlines’ fleet as of December 31, 2010 consisted of 21 CRJ900s, all of which were flown for
Delta, 83 CRJ700s, of which 70 were flown for United and 13 for Delta; 142 CRJ200s, of which 83
were flown for United, 52 were flown for Delta, four were flown for AirTran, and three were used as
spare maintenance aircraft, and 48 Brasilia turboprops, of which 38 were flown for United and 10 were
flown for Delta.
SkyWest Airlines currently conducts its Delta Connection operations pursuant to the terms of an
Amended and Restated Delta Connection Agreement which obligates Delta to compensate SkyWest
Airlines for its direct costs associated with operating Delta Connection flights, plus a payment based on
block hours flown (the ‘‘SkyWest Airlines Delta Connection Agreement’’). SkyWest Airlines’ United
code-share operations are conducted under a United Express Agreement pursuant to which SkyWest
Airlines is paid primarily on a fee-per-completed block hour and departure basis, plus a margin based
on performance incentives (the ‘‘SkyWest Airlines United Express Agreement’’). Under the SkyWest
Airlines United Express Agreement, excess margins over certain percentages must be returned or
shared with United, depending on various conditions.
On November 4, 2009, SkyWest Airlines entered into a code-share agreement with AirTran. Under
the terms of the code-share agreement, SkyWest Airlines operates four CRJ200s for AirTran under a
pro-rate arrangement. The AirTran code-share agreement has a three-year term; however, after
May 15, 2010, either party may terminate the agreement upon 120 days written notice.
Atlantic Southeast
Atlantic Southeast provides regional jet service principally in the United States, primarily from
hubs located in Atlanta, Cincinnati, Chicago (O’Hare) and Washington Dulles. Atlantic Southeast
offered more than 900 daily scheduled departures as of December 31, 2010, of which approximately 800
were Delta Connection flights and 100 were United Express flights. Atlantic Southeast’s fleet as of
December 31, 2010, consisted of ten CRJ900s (all of which were flown for Delta), 42 CRJ700s (all of
which were flown for Delta) and 114 CRJ200s (98 of which were flown for Delta and 16 of which were
flown for United). Under the terms of a Second Amended and Restated Delta Connection Agreement
executed by Atlantic Southeast and Delta (the ‘‘Atlantic Southeast Delta Connection Agreement’’),
Delta has agreed to compensate Atlantic Southeast for its direct costs associated with operating Delta
Connection flights, plus, if Atlantic Southeast completes a certain minimum percentage of its Delta
Connection flights, a specified margin on such costs. Additionally, the Atlantic Southeast Delta
Connection Agreement provides for incentive compensation upon satisfaction of certain performance
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