SkyWest Airlines 2014 Annual Report Download - page 82

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SKYWEST, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
DECEMBER 31, 2014
(1) Nature of Operations and Summary of Significant Accounting Policies (Continued)
Number of Pass-through costs Performance
aircraft under Term / Termination or costs paid directly Incentive
Agreement contract Dates by major partner Structure Payment Structure
ExpressJet United • ERJ 135—9 • The contract • Fuel • Performance based • Rate per block
ERJ Agreement • ERJ 145—216 expires on an incentives or hour, per departure
• Engine
(fixed-fee individual aircraft penalties and per aircraft
Maintenance
arrangement) basis with under contract
expirations • Landing fees,
scheduled in 2015 Station Rents,
Deice
• The final aircraft
expires in 2017 • Insurance
• The average
remaining term of
the aircraft under
contract is 1.9 years
• Upon expiration,
aircraft may be
renewed or
extended
ExpressJet United • CRJ 200—7 • The contract • Fuel • Performance based • Rate per block
CRJ Agreement expires on an incentives hour, per departure
• Landing fees,
(fixed-fee individual basis and per aircraft
Station Rents,
arrangement) with final aircraft under contract
Deice
terminating in
March 2015 • Insurance
• Upon termination,
leased aircraft are
expected to be
returned to lessors
SkyWest Airlines • CRJ 200—21 • Terminates with • None • None • Pro-rata sharing of
United Express • EMB 120—12 120-day notice the passenger fare
Pro-rate Agreement revenue
(revenue-sharing
arrangement)
Alaska Capacity Purchase Agreement
Number of Pass-through costs
aircraft under Term / Termination or costs paid directly Incentive
Agreement contract Dates by major partner Structure Payment Structure
SkyWest Airlines • CRJ 700—9 • Terminates 2018 • Fuel • Performance based • Rate per block
Alaska Agreement incentives hour, per departure
• Upon expiration, • Landing fees,
(fixed-fee and per aircraft
aircraft may be Station Rents,
arrangement) under contract
renewed or Deice
extended • Insurance
77