SkyWest, Inc., through its subsidiaries, operates a regional airline in the United States. The company’s subsidiaries include SkyWest Airlines, Inc. (SkyWest Airlines) and ExpressJet Airlines, Inc. (ExpressJet). The company offers scheduled passenger service with approximately 3,400 daily departures to destinations in the United States, Canada, Mexico, and the Caribbean. Its flights are operated as Delta Connection, United Express, American Eagle or Alaska under code-share arrangements with Delta Air Lines, Inc. (Delta); United Air Lines, Inc.; American Airlines, Inc. (American); or Alaska Airlines, Inc. (Alaska), SkyWest Airlines and ExpressJet generally provide regional flying to the company’s partners under long-term, fixed-fee code-share agreements. As of December 31, 2015, the company’s fleet scheduled for service consisted of aircraft manufactured by Bombardier Aerospace and Embraer S.A. Operating Platforms SkyWest Airlines SkyWest Airlines provides regional jet service to airports primarily located in the Midwestern and Western United States, as well as Mexico and Canada. SkyWest Airlines offered approximately 1,700 daily scheduled departures as of December 31, 2015, of which approximately 920 were United Express flights, 560 were Delta Connection flights, 170 were American Eagle flights, and 50 were Alaska-coded flights. SkyWest Airlines’ operations are conducted principally from airports located in Chicago (O’Hare), Denver, Los Angeles, Houston, Minneapolis, Portland, Seattle, Phoenix, San Francisco and Salt Lake City. As of December 31, 2015, SkyWest Airlines operated a fleet of 348 aircraft. ExpressJet ExpressJet provides regional jet service principally in the Eastern United States, primarily from airports located in Atlanta, Cleveland, Chicago (O’Hare), Houston, Detroit, Memphis, Newark and Minneapolis, as well as Mexico and Canada. ExpressJet offered approximately 1,658 daily scheduled departures as of December 31, 2015, of which approximately 926 were Delta Connection flights, 586 were United Express flights and 146 were American Eagle flights. As of December 31, 2015, ExpressJet operated a fleet of 312 aircraft. Seasonality The company’s operations are somewhat favorably affected by pleasure travel on its 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 could result in cancelled flights, principally during the winter months. Additionally, a major portion of the company’s fixed-fee arrangements is based on completing flights. The company generally experiences a significantly higher number of weather cancellations during the winter months, which negatively impacts its revenue during such months. Government Regulation All interstate air carriers, including SkyWest Airlines and ExpressJet, are subject to regulation by the U.S. Department of Transportation, the U.S. Federal Aviation Administration, and other governmental agencies. SkyWest Airlines and ExpressJet are in compliance in all material respects with the U.S. Federal Aviation Administration regulations and hold all operating and airworthiness certificates and licenses which are necessary to conduct their respective operations. Competition The primary competitors of SkyWest Airlines and ExpressJet include Air Wisconsin Airlines Corporation; Envoy Air Inc. (Envoy), Piedmont Airlines (Piedmont), and PSA Airlines, Inc. (PSA) (Envoy, PSA and Piedmont are owned by American); Horizon Air Industries, Inc. (owned by Alaska Air Group, Inc.); Mesa Air Group, Inc.; Endeavor, Inc. (owned by Delta); Republic Airways Holdings Inc.; and Trans State Airlines, Inc. History SkyWest, Inc. was founded in 1972. The company was incorporated in Utah in 1972.
(SKYW:Consolidated Issue Listed on NASDAQ Global Select )
444 South River Road
St. George, UT 84790
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