SkyWest Airlines 2013 Annual Report Download - page 22

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, 2013, SkyWest and SkyWest Airlines collectively employed 9,717 full-time
equivalent employees, consisting of 5,661 pilots and flight attendants, 2,461 customer service personnel,
1,400 mechanics and other maintenance personnel, and 195 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 in compliance in all material respects 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. 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.
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.
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