SkyWest Airlines 2013 Annual Report Download - page 156

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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Transaction with Related Party
Jerry C. Atkin, the Company’s Chairman of the Board and Chief Executive Officer, serves as a
director 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 balances in the accounts held at Zions as of
December 31, 2013 and 2012 were $81.8 million and $56.4 million, respectively. The loans made by
Zions to the Company were made in the ordinary course of business, were made on substantially the
same terms, including interest rates and collateral, as those prevailing at the time for comparable loans
with persons not related to Zions, and did not involve more than the normal risk of collectability or
present other unfavorable features.
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.
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