SkyWest Airlines 2012 Annual Report Download - page 76

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2012
(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’’) operates the largest regional airline in the
United States. As of December 31, 2012, 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, 2012, the Company had a
combined fleet of 744 aircraft consisting of the following:
CRJ200 ERJ145 ERJ135 CRJ700 CRJ900 EMB120 Total
United .................... 92 242 7 70 — 34 445
Delta ..................... 147 — — 60 46 8 261
US Airways ................ 15 — — — — — 15
American .................. 12 — — — — — 12
Alaska .................... — — — 5 — — 5
Subleased to an un-affiliated
entity ................... 2 — — — — — 2
Subleased to an affiliated entity . . — — — — 4 — 4
Total ..................... 268 242 7 135 50 42 744
For the year ended December 31, 2012, approximately 64.8% of the Company’s aggregate capacity
was operated for United, approximately 32.2% was operated for Delta approximately 1.4% was
operated for Alaska, approximately 1.4% was operated for US Airways and approximately 0.2% was
operated for American.
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
November 2011, SkyWest Airlines entered into a code share agreement with US Airways. In
September, 2012, SkyWest Airlines and ExpressJet entered into code share agreements (the ‘‘American
Agreements’’) with American Airlines, Inc. (‘‘American’’). As of December 31, 2012, 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, a US Airways carrier in Phoenix and an American carrier in
Los Angeles.
On November 17, 2011, the Company’s wholly-owned subsidiaries, Atlantic Southeast Airlines, Inc.
and ExpressJet Airlines, Inc., consolidated their operations under a single operating certificate, and on
December 31, 2011, Atlantic Southeast Airlines, Inc. and ExpressJet Airlines, Inc. were merged, with
the surviving corporation named ExpressJet Airlines, Inc. (the ‘‘ExpressJet Combination’’). In the
following Notes to Consolidated Financial Statements, ‘‘Atlantic Southeast’’ refers to Atlantic Southeast
Airlines, Inc. for periods prior to the ExpressJet Combination, ‘‘ExpressJet Delaware’’ refers to
ExpressJet Airlines, Inc., a Delaware corporation, for periods prior to the ExpressJet Combination, and
‘‘ExpressJet’’ refers to ExpressJet Airlines, Inc., the Utah corporation resulting from the combination of
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