SkyWest Airlines 2015 Annual Report Download - page 19

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15
operations, maintenance programs, record keeping and training programs are conducted under FAA approved
procedures. All air carriers operating in the United States of America are required to comply with federal laws and
regulations pertaining to noise 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 changes in 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.
ITEM 1A. RISK FACTORS
In addition to factors discussed elsewhere in this Report, the following are important risks which could
adversely affect our future results. Additional risks and uncertainties not presently known to us or that we currently do
not deem material may also impair our business operations. If any of the risks we describe below occur, or if any
unforeseen risk develops, our operating results may suffer, our financial condition may deteriorate, the trading price of
our common stock may decline and investors could lose all or part of their investment in us.