SkyWest Airlines 2011 Annual Report Download - page 45

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis presents factors that had a material effect on our results of
operations during the years ended December 31, 2011, 2010 and 2009. Also discussed is our financial
position as of December 31, 2011 and 2010. You should read this discussion in conjunction with our
consolidated financial statements, including the notes thereto, appearing elsewhere in this Report or
incorporated herein by reference. This discussion and analysis contains forward-looking statements. Please
refer to the sections of this Report entitled ‘‘Cautionary Statement Concerning Forward-looking Statements’’
and ‘‘Item 1A. Risk Factors’’ for discussion of some of the uncertainties, risks and assumptions associated
with these statements.
Overview
Through SkyWest Airlines and ExpressJet, we operate the largest regional airline in the United
States. As of December 31, 2011, SkyWest Airlines and ExpressJet offered scheduled passenger and air
freight service with approximately 4,000 total daily departures to destinations in the United States,
Canada, Mexico and the Caribbean. As of December 31, 2011, we operated a combined fleet of 732
aircraft consisting of the following:
CRJ 200 ERJ 145 CRJ700 CRJ 900 EMB 120 Total
Delta ................................ 160 — 67 31 10 268
United ............................... 96 36 70 — 35 237
Continental ........................... — 206 — — — 206
Alaska ............................... — — 5 — — 5
US Airways ........................... 2 — — — — 2
Maintenance Spare ...................... 8 — — — — 8
Subleased to an un-affiliated entity .......... 2 — — — — 2
Subleased to an affiliated entity ............. — — — 4 — 4
Total ................................ 268 242 142 35 45 732
For the year ended December 31, 2011, approximately 65.2% of our aggregate capacity was
operated under the United Express Agreements and the Continental Express Agreement,
approximately 33.6% was operated under the Delta Connection Agreements, approximately 0.9% was
operated under the Alaska capacity purchase agreement, approximately 0.1% was operated under the
US Airways code-share agreement and approximately 0.2% was operated under a code-share
agreement with 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. In May 2011, SkyWest Airlines entered into a capacity purchase agreement with Alaska. In
addition, during November 2011 SkyWest Airlines entered into a code share agreement with US
Airways. As of December 31, 2011, SkyWest Airlines operated as a Delta Connection carrier in Salt
Lake City and Minneapolis, a United Express carrier in Los Angeles, San Francisco, Denver, Houston,
Chicago and the Pacific Northwest, an Alaska carrier in Seattle/ Tacoma and Portland and a US
Airways carrier in Phoenix.
On November 17, 2011, Atlantic Southeast and ExpressJet Delaware consolidated their operations
under a single operating certificate, and on December 31, 2011, Atlantic Southeast and ExpressJet
Delaware completed the ExpressJet Combination. At the time of the ExpressJet Combination, Atlantic
Southeast had been a code-share partner with Delta in Atlanta since 1984 and United since
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