SkyWest Airlines 2011 Annual Report Download - page 72

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2011
(1) Nature of Operations and Summary of Significant Accounting Policies
SkyWest, Inc. (the ‘‘Company’’), through its subsidiaries, SkyWest Airlines, Inc. (‘‘SkyWest
Airlines’’) and ExpressJet Airlines, Inc. (‘‘ExpressJet,’’ which consists of the combined operations
formerly conducted by Atlantic Southeast Airlines, Inc. (‘‘Atlantic Southeast’’) and ExpressJet
Airlines, Inc. (‘‘ExpressJet Delaware’’) prior to the merger of ExpressJet Delaware with and into
Atlantic Southeast on December 31, 2011 (the ‘‘ExpressJet Combination’’)) operates the largest
regional airline in the United States. As of December 31, 2011, SkyWest 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, 2011,
the Company had 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 the Company’s aggregate capacity
was operated under the United Express Agreements and 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 Express Agreement and approximately 0.2% was operated under a code-share agreement
with 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. 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 an US
Airways carrier in Phoenix.
On November 17, 2011, Atlantic Southeast and ExpressJet Delaware completed their work with
the Federal Aviation Administration (‘‘FAA’’) to consolidate their operations under a single operating
certificate. Atlantic Southeast was a code-share partner with Delta in Atlanta from 1984 through the
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