SkyWest Airlines 2012 Annual Report Download - page 162

Download and view the complete annual report

Please find page 162 of the 2012 SkyWest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 180

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Transaction Related Party
Jerry C. Atkin, the Company’s Chairman of the Board and Chief Executive Officer, serves on the
Board of Directors of Zions. The Company maintains a line of credit and certain bank accounts with
Zions. Zions is an equity participant in leveraged leases on ten aircraft operated by the Company’s
subsidiaries. Zions also refinanced eight of the Company’s aircraft in 2012 for terms of three to four
years, becoming the debtor on these aircraft. An affiliate of Zions, Zion’s First National Bank, also
serves as the Company’s transfer agent. The Company’s cash balance in the accounts held at Zions as
of December 31, 2012 and 2011 was $56.4 million and $51.8 million, respectively. The Company paid to
Zions First National Bank $6,583 in exchange for transfer agent services during the year ended
December 31, 2012.
Review and Approval of Transactions with Related Parties
The Company believes that transactions between the Company and its directors and executive
officers, or between the Company and persons related to directors and executive officers of the
Company, present a heightened risk of creating or appearing to create a conflict of interest.
Accordingly, the Company has adopted a policy regarding related-party transactions that has been
approved by the Board and incorporated into the Charter of the Audit and Finance Committee. The
policy provides that the Audit and Finance Committee will review all transactions between the
Company and related persons (as defined in Item 404 of Regulation S-K promulgated by the Securities
and Exchange Commission) for potential conflicts of interest. Under the Company’s policy, all
transactions between the Company and related persons are required to be submitted to the Audit and
Finance Committee for approval prior to the Company’s entry or participation in such transactions.
40