Good morning, and welcome to the SkyWest First Quarter 2010 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions). After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would like to turn the conference over to Bradford Rich, Executive Vice President and CFO. Please go ahead, sir.

Thank you, operator. Thank you to all of you for your interest this morning and for taking the time to join us. We got started just a couple of minutes late today as we noticed that we still had a lot of people trying to access the call just slightly after the hour. Before we get started today, I'd like to just introduce those who are with me today, and who will be participating on the call. I have with me Chip Childs, the President and Chief Operating Officer of SkyWest Airlines. Brad Holt is also participating with us. Brad is the President and Chief Operating Officer of Atlantic Southeast Airlines. Michael Kraupp, our Vice President and Treasurer is also with us in participating this morning, that before we go any further I'll turn sometime to Mike to read our forward-looking statement.

Okay. In addition to historical information, our release and conference call may contain forward-looking statements. SkyWest may from time-to-time make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass SkyWest’s beliefs, expectations, hopes or intentions regarding future events. Words such as expects, intends, believes, anticipates, should, likely and similar expressions identify forward-looking statements. All forward-looking statements included in our release and conference call are made as of the date hereof and are based on the information available to SkyWest as of such date. SkyWest assumes no obligation to update any forward-looking statement. Actual results will vary and may vary materially from those anticipated, estimated, projected or expected for a number of reasons.

Okay. Thank you, Mike. Obviously, the purpose of our call today is to provide a brief review and discussion of our first quarter 2010 financial and operating results. As I said earlier, we do sincerely appreciate your interest in SkyWest. We appreciate the support and relationships that we have throughout the industry with our partners, our suppliers and of course most importantly we appreciate all the men and women of the SkyWest Inc. companies and for their commitment and dedication to the success of the organization. Now first of all, we'll begin by just reviewing the first quarter 2010 financial results. As you can see from the press release this morning, we reported operating revenues of $632.2 million for the quarter ended March 31st, 2010. That compares with $672.6 million in operating revenue for the same period last year. Our net income for the quarter was $15 million or $0.26 earnings per diluted shares. That compares with $9.4 million of net income and $0.16 in diluted earnings per share for the same period last year. We're obviously very pleased with the quarter-over-quarter. We do however; recognize that the comparable which is the first quarter of 2009 was one of the most difficult quarters in recent history, which includes very difficult weather. It included large marketable securities, write-off to non-engine budget overruns. Having said that, the first quarter of 2010 have not been without its challenges also, but in spite of them we've seen significant improvement in the current quarter and for that we're both. We're pleased and quite proud of. Our operating revenues, I think most of you understand by now that fuel prices and the accounting for fuel have created significant volatility in the total operating revenues of the Company. The more meaningful comparison is to look at non-fuel…

.: Helane Becker - Jesup & Lamont: Brad, did you talk at all about what ASA is doing in China with the co-chair agreement and if not, could you?

I will touch on it very briefly. As no public announcements have been made, my only statement I think at this point would be that we have made that consistent with the statements we've made previously. We have been looking and evaluating and considering additional international opportunities to continue to invest areas that are seeing rapid economic growth and development of air transportation. We see Vietnam as being an area of potential investment that would appear at least with our initial assessments to be one of some promising opportunity. So as we've said before, we're doing significant research, analysis and putting some work into it but beyond that no formal announcements are ready to be made. Helane Becker - Jesup & Lamont: Okay. Because, just FYI, on April 30th in one of the Asian related trade magazines that I read, it did comment that you had received an operational services agreement with Air Mekong in Vietnam, which is why I asked that question. But that's fine. If it's not been signed by you guys yet, I have no problem with respecting that.

We are well aware of that and I'll stand by my previous statement. Helane Becker - Jesup & Lamont: Okay. That's totally fine. And the only other question I had I think was just in one of the stats. The average TRIP length? Is that decline continuing? Is it meaningless? Should I not put too much weight in that?

I don’t think you should put much weight in it. It hasn’t changed materially. Directionally I’m not too worried about it. The more significant indicator here, with the way that our models works is the block hour production.

Our next question is from Rob McAdoo of Avondale Partners.

A couple of things. You have in your P&L; I got two or three lines I just want to ask about. You have things, ground handling and other, -- not looking versus last year, but just looking at the last two or three quarters, it seemed to have jumped a pretty good size amount versus like fourth quarter and third quarter. I'm curious as to what's in there that would be jumping and how should we be thinking about that over the next two or three quarters?

We have picked up a few stations along the way that we've RFPed which is increasing the ground handling. There should be similar increases in the ground handling in other but really nothing that significant to point out in that area.

What I'm saying is the last two or three quarters the ground handling line has been $23 million a quarter, and now this quarter it jumped to $29 million? So it is up $6 million on a base of $23 million. And I'm just saying with the revenue line up, the top doesn't seem to be jumping that much. So I'm trying to understand what's going on.

Well as we're firing up more pro-rate markets we're doing some of our handling in those markets.

So something like $29 million now becomes a more normal number for us to look at going forward?

Yes

Basically it just reflects the change in the business. It's not like a one time deal. It's like this is the new world?

Yes.

And same way on the other expense line?

Yes.

And then maintenance versus the last couple of quarters, especially versus the second and third quarter of last year is down quite a bit. Was there just fewer events that happened to be scheduled in the quarter?

Now Bob, which line are you looking at again?

Maintenance. The middle of last year was like $116 million to $119 million. Now it's down like what, $106 million?

Okay. So Bob, we've got two issues, two very significant issues going on in maintenance. First of all when you look at the condensed financial and look at aircraft maintenance materials and repairs, its up significantly.

Versus last year?

Versus last year. Right. So that’s just due to the timing of engine overhauls, particularly on that CRJ-200 fleet.

Which we've already talked about that. I'm just trying to ]:

Yeah. Then going the other way is in our non engine related maintenance expenses. In previous quarters we had seen fairly significant increases; both year-over-year and relative to our budgeted expenses and those expenses have come down significantly at both carriers.

That makes sense. And one final thing then at the risk of monopolizing the call. Could you tell us more about what TRIP is doing now? How big it is? We don't see a line of that shows any kind of, or I don't think I see a line here that shows anything about the equity contribution plus or minus what's going on there in 20% of the company. How big is it, what is it doing and how is it doing?

Okay, so well first of all, the line item on the financials where there this is the actual direct financial impact to us is in the other income expense. In the condensed financial there is a line called other. That 255 is basically the financial impact during the quarter of TRIP, primarily due to currency translation. As far as their financial performance, it is exactly what we thought it would be at this (inaudible) within very tight tolerance of the projections. The fleet is growing right according to plan. It's up to roughly 30 aircraft. They've added some larger aircraft to the fleet and they're planning to add a few more airplanes in each of the next few years. So all of that is on track. We've been able to assist them in getting the fleet financed and things are staying right on track and very consistent with what we thought that it was going to do.

And the 30 airplanes, what kind of airplanes are they?

Well, they have a large fleet of ATRs and they've just added large ERJ jets to the fleet.

The E170 types or something.

E175s

And they are flying for their own nickel? They're not contract flying? They're flying for their open own nickel, or whatever the appropriate phrase would be in Brazil?

That is substantially correct. They don’t have relationships like we do with majors but they do have some marketing agreements but generally it is what we refer to as just independent pro-rate flying.

(Operator Instructions). Our next question is from Glenn Engel of Merrill Lynch.

’:

So I think the main point to take here is that directionally we expect throughout this year and into next year that our maintenance expense will be in excess of the amounts that we collect in revenue for that part of our contract. So, this time the excess was a little over $8 million and as far as the quarterly number it is going to be about that number for the next several quarters.

’:

That is certainly what our plan is.

And final question on labor. The national mediation board I guess is considering changing the rules on union votes. Where are we on that, and what effect does it have on you?

I am going to turn the mike over to Chip Childs and let him address that one.

’: ’:

Finally are there many growth opportunities currently?

’: We think there is more opportunity than normally.

And the comment, does that imply your opportunity domestically is more of a share shift than a growth?

’:

Thank you very much.

Thank you. Our next question is from Bob McAdoo of Avondale Partners.

Yes, one other thing. The $6 million pro-rate loss. Is that virtually all of them or almost profitable because of seasonality, or are there particular areas, regions, markets, some relatively small number of markets that are the majority of the problem? That if you decided to you could surgically remove those and the rest of it would look just fine?

I will answer it very generally, I think that the losses are concentrated into a particularly area. A significant issue here is that we now have pricing and inventory control responsibilities for that segment of the flying, so combine that with the fact that we are moving into a seasonally better period and we are still optimistic about the potential.

Okay. Thanks.

Our next question is from Michael Roarke of McAdams Wright Ragen.

Do you have -- on block hours do you have an outlook for where you think they will be over the next year or so?

’:

Okay. And then on block hours again did you start doing new business with United in the first quarter that was not present in the first quarter a year ago?

We did begin I will term it a new relationship, which is the Atlantic Southeast Airlines flying for United which started up during the quarter. It started in the first quarter by -- during the second quarter it should grow to 14 aircraft in that system.

So, in terms of the 6% increase in block hours, how much of that was attributable to that new piece of business as opposed to kind of organic increase in flying for existing relationships?

’:

Okay. So, I guess as far as current trends go, is the general direction right now to gradually add back capacity as far as your partners are concerned?

’: ’:

Okay. Great. Thank you and one last one as I was just playing with the number and thinking about it from an earnings perspective. On this maintenance issue is kind of a bottom line way of thinking about that, it will be a drag of $0.09 to $0.10 a share per quarter for the rest of the year and then also into 2011?

’:

Okay. Great.

’: ’: ’: ’:

Understood. Thank you.

’: John O’Malley - Wedge Capital Management: Just one follow-up on the maintenance expense question and with the United contract. Is it safe to assume that economically this activity is meant to be a break-even activity? As expressed in the contract?

Well yes and no, I mean certainly we expect as in all of the components of our cost structure that if we are meeting the terms of the agreements, there is certainly is an intended markup on top of the actual cost incurred. So, overtime there will be a --there should be an offset but yet in the embedded number, this cost base they are certainly indented to be markup on this base of cost. So, as a base cost yes it should work out to a breakeven. But the cost base does qualify for markup. John O’Malley - Wedge Capital Management: Understood. So basically, if you are exceeding or doing better on the expense side of it, you have the ability to make some margin on it over time.

’: ’: John O’Malley - Wedge Capital Management: Okay. Thank you very much.

This concludes our question and answer session for today. I would like to turn our call back over to the speakers if for any closing remarks they may have.

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