SkyWest Airlines 2011 Annual Report Download - page 22

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 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 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 coverage 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
on our financial condition, operating revenues and net income unless we are able to enter into
satisfactory substitute arrangements for the utilization of the affected aircraft by other code-share
partners, or, alternatively, obtain the airport facilities and gates and make the other arrangements
necessary to fly as an independent airline. We may not be able to enter into substitute code-share
arrangements, and any such arrangements we might secure may not be as favorable to us as our
current agreements. Operating our airline independent from major partners would be a significant
departure from our business plan, would likely be very difficult and would likely require significant time
and resources, which may not be available to us at that point.
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