SkyWest Airlines 2012 Annual Report Download - page 22

Environmental Matters
SkyWest, SkyWest Airlines and ExpressJet are subject to various federal, state, local and foreign
laws and regulations relating to environmental protection matters. These laws and regulations govern
such matters as environmental reporting, storage and disposal of materials and chemicals and aircraft
noise. We are, and expect in the future to be, involved in various environmental matters and conditions
at, or related to, our properties. We are not currently subject to any environmental cleanup orders or
actions imposed by regulatory authorities. We are not aware of any active material environmental
investigations related to our assets or properties.
Safety and Security
We are committed to the safety and security of our passengers and employees. Since the
September 11, 2001 terrorist attacks, SkyWest Airlines and ExpressJet have taken many steps, both
voluntarily and as mandated by governmental agencies, to increase the safety and security of their
operations. Some of the safety and security measures we have taken with our code-share partners
include: aircraft security and surveillance, positive bag matching procedures, enhanced passenger and
baggage screening and search procedures, and securing of cockpit doors. We are committed to
complying with future safety and security requirements.
Insurance
SkyWest, SkyWest Airlines and ExpressJet maintain insurance policies we believe are of types
customary in the industry and in amounts we believe are adequate to protect against material loss.
These policies principally provide coverage for public liability, passenger liability, baggage and cargo
liability, property damage, including coverage for loss or damage to our flight equipment, and workers’
compensation insurance. We cannot assure, however, that the amount of insurance we carry will be
sufficient to protect us from material loss.
Seasonality
Our results of operations for any interim period are not necessarily indicative of those for the
entire year, in part because the airline industry is subject to seasonal fluctuations and general economic
conditions. Our operations are somewhat favorably affected by pleasure travel on our pro-rate routes,
historically contributing to increased travel in the summer months, and are unfavorably affected by
decreased business travel during the months from November through January and by inclement
weather which occasionally results in cancelled flights, principally during the winter months.
ITEM 1A. RISK FACTORS
In addition to factors discussed elsewhere in this Report, the following are important risks which could
adversely affect our future results. Additional risks and uncertainties not presently known to us or that we
currently do not deem material may also impair our business operations. If any of the risks we describe
below occur, or if any unforeseen risk develops, our operating results may suffer, our financial condition may
deteriorate, the trading price of our common stock may decline and investors could lose all or part of their
investment in us.
Risks Related to Our Operations
We are highly dependent on Delta and United.
If any of our code-share agreements with Delta or United are terminated, we would be
significantly impacted and likely would not have an immediate source of revenue or earnings to offset
such loss. A termination of any of these agreements would likely have a material adverse effect on our
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