SkyWest Airlines 2011 Annual Report Download - page 18

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Airport, 94 flights to or from Detroit International Airport and 8 flights to or from Cincinnati/Northern
Kentucky International Airport.
As of December 31, 2011, SkyWest Airlines, Atlantic Southeast and ExpressJet Delaware
scheduled the following daily flights as a United or Continental Express carrier: 572 flights to or from
Houston International Airport, 486 flights to or from Chicago O’Hare International Airport, 412 flights
to or from Denver International Airport, 306 flights to or from San Francisco International Airport,
284 flights to or from Los Angeles International Airport, 214 flights to or from Newark International
Airport, 148 flights to or from Washington Dulles International Airport, 128 flights to or from
Cleveland International Airport and 64 flights to or from other airports.
As of December 31, 2011, SkyWest Airlines scheduled 15 daily flights as an Alaska carrier to or
from Portland International Airport and 15 daily flights as an Alaska carrier to or from Seattle
International Airport.
As of December 31, 2011, SkyWest Airlines scheduled ten daily flights as an US Airways Express
carrier to or from Phoenix International Airport
Our flight schedules are structured to facilitate the connection of our passengers with flights of our
major partners at the airports we serve.
Training and Aircraft Maintenance
SkyWest Airlines and ExpressJet employees perform substantially all routine airframe and engine
maintenance and periodic inspection of equipment at their respective maintenance facilities, and
provide substantially all training to SkyWest Airlines and ExpressJet crew members and maintenance
personnel at their respective training facilities. SkyWest Airlines and ExpressJet also contract with third
party vendors for non-routine airframe and engine maintenance.
Fuel
Historically, we have not experienced problems with the availability of fuel, and believe we will be
able to obtain fuel in quantities sufficient to meet our existing and anticipated future requirements at
competitive prices. Standard industry contracts generally do not provide protection against fuel price
increases, nor do they ensure availability of supply; however, our code-share agreements with Delta,
United, Continental, Alaska and US Airways provide for fuel used in the performance of the
code-share agreements to be reimbursed by our major partners, thereby reducing our exposure to fuel
price fluctuations. During the year ended December 31, 2011, United purchased fuel directly from fuel
vendors for our United Express aircraft under contract operated out of Chicago, San Francisco, Los
Angeles and Denver; Continental purchased all of the fuel for our Continental aircraft directly from
Continental’s fuel vendors; and Delta purchased the majority of the fuel for our Delta aircraft under
contract directly from its fuel vendors. A substantial increase in the price of jet fuel, to the extent our
fuel costs are not reimbursed, or the lack of adequate fuel supplies in the future, could have a material
adverse effect on our business, financial condition, results of operations or liquidity.
Employee Matters
Railway Labor Act
Our relations with labor unions in the U.S. are governed by the Railway Labor Act. Under the
Railway Labor Act, a labor union seeking to represent an unrepresented craft or class of employees is
required to file with the National Mediation Board (the ‘‘NMB’’) an application alleging a
representation dispute, along with authorization cards signed by at least 35% of the employees in that
craft or class. The NMB then investigates the dispute and, if it finds the labor union has obtained a
sufficient number of authorization cards, conducts an election to determine whether to certify the labor
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