SkyWest Subject of SEC Probe
The Securities and Exchange Commission (SEC) has launched an investigation into the accounting of certain maintenance costs by St. George, Utah-based SkyWest. Revealed in the company’s latest quarterly financial statement, released May 10, the probe relates to an accounting method change SkyWest instituted for certain engine overhaul expenses starting Jan. 1, 2002. As a result of the change, the airline adjusted its financial statements for 2001 and the first and second quarters of 2002, piquing the SEC’s interest in the matter. SkyWest has offered to subject itself to a cease-and-desist order under which it would agree not to violate federal securities laws in the future. At press time the offer remained under consideration by the SEC.