Skywest Executive Summary

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Executive Summary: SkyWest
SkyWest Inc. (SkyWest) primarily competes as a domestic regional carrier. In this capacity SkyWest provides service from small cities using regional jets to support the network carriers’ hub-and-spoke system (Northwest, Delta, United, etc.). Regional airlines feed the large national carriers by bringing customers from small airports to major hubs to catch connecting flights. Most of the flights operated by regional carriers are in partnership with the major carriers. SkyWest has partnerships with Delta, United, and Midwest Airlines.
SkyWest’s growth and strategic planning has relied on the expansion of current partnerships and geographic growth. SkyWest operated as a west coast regional carrier but expanded
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Strategic Issues
Through internal and external analysis, we have discovered three strategic issues which merit front burner attention.
The first of these issues is the fact that SkyWest has all of its eggs in a few baskets. It’s either feast of famine depending on the success of Delta, United, and Midwest Airlines. In a declining airline industry, it is vital for SkyWest to lower its risk.
The second area which demands attention is operational efficiency. SkyWest Airlines has been above average with benchmarks like cost per seat mile, airplane turnaround, etc. but ASA has been well below average. In order to retain customers SkyWest must improve operational efficiency.
The final strategic issue is customer service. With such low switching costs, customers can easily find other airlines with which to do business. In today’s economic climate consumers are hunting for the cheapest price, unless loyalty can be developed through quality customer service. These areas for attention include on-time arrivals, safety image, and bag handling.
Strategic Options

1. Expand and diversify through the identification of new contracts

2. Improve operational efficiency

3. Improve customer service

4. Compete with hub and spoke network carriers

5. Acquire (an)other regional airline(s)

Recommendations

1. Expand and diversify through identification of new contracts: Market

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