SkyWest Airlines 2014 Annual Report Download - page 17

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2010), Delta has the right to require that certain contractual rates under those agreements shall not
exceed the second lowest of all carriers within the Delta Connection program. SkyWest Airlines and
ExpressJet have agreed with Delta on contractual rates that are effective through December 31, 2015.
The SkyWest Airlines Delta Connection Agreement is scheduled to terminate on December 31,
2022, subject to certain Delta extension rights. The SkyWest Airlines Delta Connection Agreement is
subject to early termination in various circumstances, including:
• if SkyWest Airlines or Delta commits a material breach of the SkyWest Airlines Delta
Connection Agreement, subject to 30-day notice and cure rights;
• if SkyWest Airlines fails to conduct all flight operations and maintain all aircraft under the
SkyWest Airlines Delta Connection Agreement in compliance in all material respects with
applicable government regulations;
• if SkyWest Airlines fails to satisfy certain performance and safety requirements;
• if, under certain circumstances, Delta has a right to terminate the ExpressJet Delta Connection
Agreement;
• if the other party files for bankruptcy, reorganization or similar action (subject to limitations
imposed by the U.S. Bankruptcy Code) or if either party makes an assignment for the benefit of
creditors; or
• if SkyWest Airlines fails to maintain competitive base rate costs (provided, however, that
SkyWest Airlines has the right to adjust its rates prior to any such termination).
The ExpressJet Delta Connection Agreement is scheduled to terminate on December 31, 2022,
subject to certain Delta extension rights. The ExpressJet Delta Connection Agreement is subject to
early termination in various circumstances including:
• if ExpressJet or Delta commits a material breach of the ExpressJet Delta Connection
Agreement, subject to 30-day notice and cure rights;
• if ExpressJet fails to conduct all flight operations and maintain all aircraft under the ExpressJet
Delta Connection Agreement in compliance in all material respects with applicable government
regulations;
• if ExpressJet fails to satisfy certain performance and safety requirements;
• if, under certain circumstances, Delta has a right to terminate the SkyWest Airlines Delta
Connection Agreement;
• if the other party files for bankruptcy, reorganization or similar action (subject to limitations
imposed by the U.S. Bankruptcy Code) or if either party makes an assignment for the benefit of
creditors; or
• if ExpressJet fails to maintain competitive base rate costs (provided, however, that ExpressJet
has the right to adjust its rates prior to any such termination).
SkyWest Airlines United Express Agreements
SkyWest Airlines and United are parties to two United Express agreements: a United Express
agreement initially executed between SkyWest Airlines and United to operate certain CRJ200s,
CRJ700s and EMB120s dated July 31, 2003, and a United Express agreement to operate 40 new
E175 aircraft (collectively, the ‘‘SkyWest Airlines United ExpressJet Agreements’’). Under the
E175 agreement, SkyWest Airlines began service in May 2014 and 20 E175 aircraft had been delivered
12