SkyWest Airlines 2014 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 2014 SkyWest Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 178

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

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.
Safety and Security
We are committed to the safety and security of our passengers and employees. Since the
September 11, 2001 terrorist attacks, SkyWest Airlines and ExpressJet have taken many steps, both
voluntarily and as mandated by governmental authorities, to increase the safety and security of their
operations. Some of the safety and security measures we have taken with our code-share partners
include: aircraft security and surveillance, positive bag matching procedures, enhanced passenger and
baggage screening and search procedures, and securing of cockpit doors. We are committed to
complying with future safety and security requirements.
Insurance
SkyWest, SkyWest Airlines and ExpressJet maintain insurance policies we believe are of types
customary in the industry and in amounts we believe are adequate to protect against material loss.
These policies principally provide coverage for public liability, passenger liability, baggage and cargo
liability, property damage, including coverage for loss or damage to our flight equipment, and workers’
compensation insurance. We cannot assure, however, that the amount of insurance we carry will be
sufficient to protect us from material loss.
Seasonality
Our results of operations for any interim period are not necessarily indicative of those for the
entire year, in part because the airline industry is subject to seasonal fluctuations and general economic
conditions. Our operations are somewhat favorably affected by pleasure travel on our pro-rate routes,
historically contributing to increased travel in the summer months, and are unfavorably affected by
decreased business travel during the months from November through January and by inclement
weather which can result in cancelled flights, principally during the winter months. Additionally, a
significant portion of our fixed-fee arrangements is based on completing flights. We generally
experience a significantly higher number of weather cancellations during the winter months, which
negatively impacts our revenue during such months.
18