SkyWest Airlines 2013 Annual Report Download - page 80
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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2013
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
Alaska Capacity Purchase Agreement
Pass through costs
Number of or costs paid
aircraft under Term / Termination directly by major
Agreement contract Dates partner Incentive Structure Payment Structure
SkyWest Airlines • CRJ 700 - 7 • Terminates 2018 • Fuel • Performance • Rate per block
Capacity Purchase • Upon expiration, • Landing fees, based incentives hour, per
Agreement aircraft may be Station Rents, departure and per
renewed or Deice aircraft under
extended • Insurance contract
US Airways Express Agreement
Pass through costs
Number of or costs paid
aircraft under Term / Termination directly by major
Agreement contract Dates partner Incentive Structure Payment Structure
SkyWest Airlines US • CRJ200 - 10 • Terminates 2015 • Fuel • Performance • Rate per block
Airways Express • CRJ900 - 4 • Upon expiration, • Landing fees, based incentives hour, per
Agreement aircraft may be Station Rents, departure and per
renewed or Deice aircraft under
extended • Insurance contract
SkyWest Airlines US • CRJ200 - 1 • Terminate with • None • None • Pro-rata sharing
Airways Express 120 days notice of the passenger
Prorate Agreement fare revenue
American Agreement
Pass through costs
Number of or costs paid
aircraft under Term / Termination directly by major
Agreement contract Dates partner Incentive Structure Payment Structure
SkyWest Airlines • CRJ200 - 12 • Terminate 2016 • Fuel • Performance • Rate per block
American Capacity • Upon expiration, • Landing fees, based incentives hour, per
Purchase aircraft may be Station Rents, departure and per
Agreement renewed or Deice aircraft under
extended • Insurance contract
ExpressJet American • CRJ200 - 11 • Terminates 2017 • Fuel • Performance • Rate per block
Capacity Purchase • Upon expiration, • Landing fees, based incentives hour, per
Agreement aircraft may be Station Rents, departure and per
renewed or Deice aircraft under
extended • Insurance contract
Other Revenue Items
The Company’s passenger and ground handling revenues could be impacted by a number of
factors, including changes to the Company’s code-share agreements with Delta, United, Alaska,
American or US Airways, contract modifications resulting from contract re-negotiations, the Company’s
ability to earn incentive payments contemplated under the Company’s code-share agreements and
settlement of reimbursement disputes with the Company’s major partners.
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