SkyWest Airlines 2015 Annual Report Download - page 145

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43
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Transaction with Related Party
Jerry C. Atkin, the Company’s Chairman of the Board and former Chief Executive Officer, serves on the Board
of Directors of Zions Bancorporation (“Zions”). The Company maintains a line of credit and certain bank accounts with
Zions. The Company’s cash balances in the accounts held at Zions as of December 31, 2015 and 2014 was $65.0 million
and $90.6 million, respectively. Zions is an equity participant in leveraged leases on five aircraft leased by the
Company’s subsidiaries. Zions also refinanced seven aircraft operated by the Company, becoming the debtor on these
aircraft. Zions also serves as the Company’s transfer agent for which the Company pays to Zions annual fees of
approximately $11,000.
During the year ended December 31, 2015, the Company purchased $364,000 of spare aircraft parts from
NORDAM, an entity affiliated with Meredith S. Madden, a director of the Company.
Review and Approval of Transactions with Related Parties
The Company believes that transactions between the Company and its directors and executive officers, or
between the Company and persons related to directors and executive officers of the Company, present a heightened risk
of creating or appearing to create a conflict of interest. Accordingly, the Company has adopted a policy regarding
related-party transactions that has been approved by the Board and incorporated into the Charter of the Audit and
Finance Committee. The policy provides that the Audit and Finance Committee will review all transactions between the
Company and related persons (as defined in Item 404 of Regulation S-K promulgated by the Securities and Exchange
Commission) for potential conflicts of interest. Under the Company’s policy, all transactions between the Company and
related persons are required to be submitted to the Audit and Finance Committee for approval prior to the Company’s
entry or participation in such transactions.