SkyWest Airlines 2014 Annual Report Download - page 74

SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2014
(1) Nature of Operations and Summary of Significant Accounting Policies
SkyWest, Inc. (the ‘‘Company’’), through its subsidiaries, SkyWest Airlines, Inc. (‘‘SkyWest
Airlines’’) and ExpressJet Airlines, Inc. (‘‘ExpressJet’’), operates the largest regional airline in the
United States. As of December 31, 2014, SkyWest and ExpressJet offered scheduled passenger and air
freight service with approximately 3,600 total daily departures to different destinations in the United
States, Canada, Mexico and the Caribbean. Additionally, the Company provides ground handling
services for other airlines throughout its system. As of December 31, 2014, the Company had a
combined fleet of 749 aircraft consisting of the following:
CRJ200 CRJ700 CRJ900 ERJ135 ERJ145 E175 EMB120 Total
United ................ 89 70 — 9 216 20 21 425
Delta ................. 113 60 60 — — — 6 239
American .............. 29 — — — — — — 29
US Airways ............. 11 — 4 — — — — 15
Alaska ................ — 9 — — — — — 9
Subleased to an un-affiliated
entity ............... 2 — — — — — — 2
Other ................. 4 — — — 10 — 16 30
Total .................. 248 139 64 9 226 20 43 749
For the year ended December 31, 2014, approximately 61.4% of the Company’s aggregate capacity
was operated for United, approximately 31.6% was operated for Delta, approximately 3.2% was
operated for American, approximately 2.1% was operated for Alaska and approximately 1.7% was
operated for US Airways.
SkyWest Airlines has been a code-share partner with Delta in Salt Lake City and United in Los
Angeles since 1987 and 1997, respectively. In 2011, SkyWest Airlines entered into a code-share
agreement with Alaska and with US Airways. In September 2012, SkyWest Airlines and ExpressJet
entered into code share agreements (the ‘‘American Agreements’’) with American Airlines, Inc.
(‘‘American’’). As of December 31, 2014, SkyWest Airlines operated as a Delta Connection carrier in
Salt Lake City and Minneapolis, a United Express carrier in Los Angeles, San Francisco, Denver,
Houston, Chicago and the Pacific Northwest, an Alaska carrier in Seattle/ Tacoma and Portland, a US
Airways carrier in Phoenix and an American carrier in Los Angeles.
On November 17, 2011, the Company’s wholly-owned subsidiaries, Atlantic Southeast Airlines, Inc.
and ExpressJet Airlines, Inc., consolidated their operations under a single operating certificate, and on
December 31, 2012, Atlantic Southeast Airlines, Inc. and ExpressJet Airlines, Inc. were merged, with
the surviving corporation named ExpressJet Airlines, Inc. (the ‘‘ExpressJet Combination’’). In the
following Notes to Consolidated Financial Statements, ‘‘Atlantic Southeast’’ refers to Atlantic Southeast
Airlines, Inc. for periods prior to the ExpressJet Combination, ‘‘ExpressJet Delaware’’ refers to
ExpressJet Airlines, Inc., a Delaware corporation, for periods prior to the ExpressJet Combination, and
‘‘ExpressJet’’ refers to ExpressJet Airlines, Inc., the Utah corporation resulting from the combination of
Atlantic Southeast and ExpressJet Delaware, for periods subsequent to the ExpressJet Combination. At
the time of the ExpressJet Combination, Atlantic Southeast had been a code-share partner with Delta
in Atlanta since 1984 and a code-share partner with United since February 2010. As of December 31,
2014, ExpressJet operated as a Delta Connection carrier in Atlanta and Detroit, a United Express
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