SkyWest Airlines 2011 Annual Report Download - page 9

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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 1,650 daily scheduled departures as
of December 31, 2011, of which approximately 1,110 were United Express flights, 500 were Delta
Connection flights, 30 were Alaksa-coded flights and 10 were US Airways Express flights. SkyWest
Airlines’ operations are conducted from hubs located in Chicago (O’Hare), Denver, Los Angeles,
Houston, Portland, Seattle, Phoenix, San Francisco and Salt Lake City. SkyWest Airlines’ fleet as of
December 31, 2011 consisted of 21 CRJ900s, all of which were flown for Delta; 96 CRJ700s, of which
70 were flown for United, 21 were flown for Delta and five were flown for Alaska; 153 CRJ200s, of
which 82 were flown for United, 61 were flown for Delta, eight were in preparation for service under a
code-share agreement with US Airways and two were flown for US Airways; and 45 Brasilia
turboprops, of which 35 were flown for United and ten 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’’). During 2011, SkyWest
Airlines entered into code-share agreements with Alaska and US Airways, pursuant to which SkyWest
Airlines is paid primarily on a fee-per-completed block hour and departure basis, plus a fixed margin
per aircraft each month.
ExpressJet
ExpressJet provides regional jet service principally in the United States, primarily from hubs
located in Atlanta, Cleveland, Cincinnati, Chicago (O’Hare), Denver, Houston, Newark and Washington
Dulles. The combined operations of Atlantic Southeast and ExpressJet Delaware offered more than
2,100 daily scheduled departures as of December 31, 2011, of which approximately 650 were Delta
Connection flights and 1,450 were Continental Express or United Express flights. As of December 31,
2011, the combined fleet of Atlantic Southeast and ExpressJet Delaware consisted of ten CRJ900s (all
of which were flown for Delta), 46 CRJ700s (all of which were flown for Delta), 113 CRJ200s (99 of
which were flown for Delta and 14 of which were flown for United) and 242 ERJ145s all of which were
flown for United or Continental.
Under the terms of a Second Amended and Restated Delta Connection Agreement initially
executed between Delta and Atlantic Southeast and to which ExpressJet is now a party (the
‘‘ExpressJet Delta Connection Agreement’’), Delta has agreed to compensate ExpressJet for its direct
costs associated with operating Delta Connection flights, plus, if ExpressJet completes a certain
minimum percentage of its Delta Connection flights, a specified margin on such costs. Additionally, the
ExpressJet Delta Connection Agreement provides for incentive compensation upon satisfaction of
certain performance goals. Under the ExpressJet Delta Connection Agreement, excess margins over
certain percentages must be returned to or shared with Delta, depending on various conditions.
ExpressJet’s Continental and United code-share operations are conducted under a Capacity Purchase
Agreement between ExpressJet and Continental (the ‘‘Continental CPA’’) and two United Express
Agreements between ExpressJet and United (collectively, the ‘‘ExpressJet United Express
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