SkyWest Airlines 2012 Annual Report Download - page 21

ExpressJet Delaware and on maintaining productive employee relations. The integration of the
workforces of ExpressJet Delaware and Atlantic Southeast has been, and we anticipate it will continue
to be, challenging. Completing the integration of the workforces of the two airlines will require the
resolution of potentially difficult issues relating to representation of various work groups and the
relative seniority of the work groups at each carrier. Unexpected delays or expenses or other challenges
to integrating the workforces could impact the anticipated synergies from the ExpressJet Combination
and affect our financial performance.
As of December 31, 2012, SkyWest and SkyWest Airlines collectively employed 9,300 full-time
equivalent employees, consisting of 5,377 pilots and flight attendants, 2,441 customer service personnel,
1,281 mechanics and other maintenance personnel, and 201 administration and support personnel.
None of these employees are currently represented by a union. Collective bargaining group
organization efforts among SkyWest Airlines’ employees do, however, occur from time to time and we
anticipate that such efforts will continue in the future. If unionization efforts are successful, we may be
subjected to risks of work interruption or stoppage and/or incur additional expenses associated with
increased union representation of our employees. Neither SkyWest nor SkyWest Airlines has ever
experienced a work stoppage due to a strike or other labor dispute, and we consider SkyWest Airlines’
relationships with its employees to be good.
Government Regulation
All interstate air carriers, including SkyWest Airlines and ExpressJet, are subject to regulation by
the U.S. Department of Transportation (the ‘‘DOT’’), the FAA and other governmental agencies.
Regulations promulgated by the DOT primarily relate to economic aspects of air service. The FAA
requires operating, air worthiness and other certificates; approval of personnel who may engage in
flight, maintenance or operating activities; record-keeping procedures in accordance with FAA
requirements; and FAA approval of flight training and retraining programs. Generally, governmental
agencies enforce their regulations through, among other methods, certifications, which are necessary for
the continued operations of SkyWest Airlines and ExpressJet, and proceedings, which can result in civil
or criminal penalties or revocation of operating authority. The FAA can also issue maintenance
directives and other mandatory orders relating to, among other things, grounding of aircraft, inspection
of aircraft, installation of new safety-related items and the mandatory removal and replacement of
aircraft parts.
We believe SkyWest Airlines and ExpressJet are operating in compliance with FAA regulations and
hold all operating and airworthiness certificates and licenses which are necessary to conduct their
respective operations. We incur substantial costs in maintaining current certifications and otherwise
complying with the laws, rules and regulations to which SkyWest Airlines and ExpressJet are subject.
SkyWest Airlines’ and ExpressJet’s flight operations, maintenance programs, record keeping and
training programs are conducted under FAA approved procedures. SkyWest Airlines and ExpressJet do
not currently operate at any airports where landing slots are restricted.
All air carriers operating in the United States of America are required to comply with federal laws
and regulations pertaining to noise abatement and engine emissions. All such air carriers are also
subject to certain provisions of the Federal Communications Act of 1934, as amended, because of their
extensive use of radio and other communication facilities. SkyWest Airlines and ExpressJet are also
subject to certain federal and state laws relating to protection of the environment, labor relations and
equal employment opportunity. We believe SkyWest Airlines and ExpressJet are in compliance in all
material respects with these laws and regulations.
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