Skywest Airlines Case Analysis

1139 Words 5 Pages
Register to read the introduction… First, a company must focus on customer service. Happy customers become loyal customers, and with low customer switching costs, it is very easy for someone with a bad experience to never fly with the airline again. Another key area is operational efficiency. Specifically, airlines look at the cost per available seat mile. A safety rating is another key factor for success. Passengers will not fly with an airline that has an unsafe safety image. On-time arrival rate is another area that demands focus. If companies want passengers to continue flying with them, a regional carrier would have to deliver …show more content…
These three airlines each have three or less contracts with regional carriers. Rivals are likely to continue to negotiate and acquire long term service contracts with all major airlines. Rivals may also benefit from the financial downfall. Republic Airlines, a regional carrier, recently loaned US Airways, a major carrier, up to $35 million to support the airline and keep its contract in place. This basically gave Republic a guaranteed contract while loans are being paid off.
SkyWest Airlines ranked number one in enplaned passengers by over 10 million in 2007. SkyWest Airlines is normally a leader in on-time arrival, percentage of cancellations, lost bags, and customer service. ASA on the other hand has ranked poorly in these categories.
Insert Financial Analysis
SkyWest has made several strategic moves in the last few years which have resulted in growth and profitability. Although the airline industry is suffering overall, now is the time for SkyWest to grow market share. This continued growth will come through additional strategic partnerships, improving customer satisfaction, on-time arrivals, cost per available seat mile, and bag handling efficiency.
Strategic Issues
Through internal and external analysis, we have discovered three strategic issues which merit front burner
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Expand and diversify through identification of new contracts: Market share should be a primary focus for the regional carrier during this down time in the airline industry. As network carriers like Northwest and Delta merge, the opportunity for SkyWest to capitalize on relationships with these key players increases. SkyWest should invest financial and other resources towards securing large scale and long term service contracts for the major network carriers. Since SkyWest currently has a service contract with only three airlines, it is very important to identify contracts with other carriers. Through this diversification, SkyWest will lower the risk associated with one of the current three partners goes out of

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