Analytical tools used in this report are: * An analysis of the airline industry macro-environment * A Five-Forces model of the pressures in the airline industry * A study of the drivers of change and industry dynamics * Identification of SkyWest’s main rivals * The airline industry’s key success factors * A strategic group map of the industry * An analysis of SkyWest’s strategy and business model including financial performance * An identification and critique of SkyWest’s strategy
* A comparative weighted assessment of SkyWest’s competitive advantage * An analysis of SkyWest’s strengths, weaknesses, opportunities, and threats (SWOT) Conclusion: This report concludes that SkyWest is a strong industry leader because of excellent reputation for being efficient and agreements with other airlines. However, because of contracts with the other airlines SkyWest is not immune to the same issues that affect the industry as a whole. As of 2009 SkyWest primarily operated through partnership contracts with major airlines.
As the major airlines faced bankruptcy SkyWest’s revenues became less predictable and more risky, even though the majors began to outsource routes to SkyWest. The bankruptcies also highlighted the risk within contracts with other airline companies. SkyWest had tried to partner with more major airlines; however those relationships have since ended. SkyWest made an acquisition in 2005 that allowed them to expand geographically. Considering the company’s limited domestic presence SkyWest had been undertaking efforts to expand its operations outside the United States.
SkyWest has a strong operational network and a strong aircraft fleet but will lose ground to competitors if it fails to focus on increasing maintenance costs and extensive governmental regulations. The four major threats to SkyWest are; completion, increasing fuel prices, strict governmental regulation and increasing maintenance costs on aging aircraft as discussed in Exhibit 8. Analysis Despite the challenges and reduced revenues in the first five months of 2009, the future of SkyWest and the airline industry looks promising.
SkyWest’s combined revenue passenger miles increased by 4. 9 percent in June 2009, and its load factor improved form 80. 0 percent in June 2008 to 82. 3 percent the next year. SkyWest has benefitted from expanded partnerships in their current business relations with U. S. Airways, Alaska Airlines and American Airlines as referenced in Exhibit 9. The main competitors of SkyWest, Inc. include Mesa Air Group, Inc. , Republic Airways Holdings, and American Eagle as laid out in Exhibit 9. The competition is fierce over the contracts with few major airlines.
In order to acquire these partnerships each regional airline is required to: develop and maintain high levels of customer service, develop and maintain a strong safety image, maximize on-time arrivals, and acquire new aircraft. SkyWest had been known to be an industry leader in customer service factors like baggage handling. However, as discussed in Exhibit 2 each of SkyWest’s major competitors have really stepped up their performance in that area and have made SkyWest’s advantage almost disappear. SkyWest will be challenged to create an advantage in other areas if they are to continue as an industry leader.
The drivers of change in the industry have created more competition amongst rivals. The current economic upturn has created more prospective clients. As discussed in Exhibit 3, the majority of passengers fall into either the leisure or business traveler category. As the economy continues to improve, more and more travelers will need to utilize airlines in order to travel to different places to conduct their business. SkyWest will need to take advantage of new technology, continued superior customer service and an increased effort in expanding partnerships in order to take advantage of the new potential passengers.
A major factor in how SkyWest will continue to grow is how it will deal with drivers of change regarding legal and regulatory changes. While strict rules are already in place by the FAA, DOT and other organizations, newer standards will greatly impact growth and revenue. The Airline Safety and Pilot Training Improvement Act of 2009 will impact the way SkyWest deals with its pilots. New regulations on hours, record keeping and training procedures will have the potential to negatively affect SkyWest’s financial standing. It will be important to have properly trained pilots so that they do not face disciplinary actions.
Regional airliners such as SkyWest rely on larger airliners like Delta to be successful in the industry. If Delta has a problem, it is likely to impact SkyWest since it is a major partner with Delta. This dependence on other companies can be both an advantage and a disadvantage. By partnering with someone like Delta, SkyWest has a large and diverse passenger base. The downside is that this high level of dependence will leave them vulnerable to negative performance by Delta, United or any other major airliner that they partner with.
It is very important that SkyWest stay ahead in terms of being competitive regarding the industry’s key success factors. As noted in Exhibit 6 brand image is an important factor in the key success model. SkyWest’s current engine upgrade plan will enhance reliability in their fleet which will help boost the way passengers and investors view the company. One factor that could have a negative effect is the recent acquisition of Atlantic Southeast Airlines and Express Jet. Both companies have been known to be poor performers in the industry.
SkyWest must successfully merge their operations in order to boost performance across their entire business operation. Recommendations SkyWest will need to continue to grow their brand through acquisitions. With the economy on such a slow rise, many of the smaller regional airlines will find it difficult to turn enough profit to continue business. When the aviation was booming, there was incentive to enter the market based on rising profits. Many of the smaller regional companies that entered the market did so by accepting contracts that in times of economic difficulties would not cover costs.
SkyWest has been known to be at the top of the industry in regards to running their business. By continuing to keep successful business practices at the forefront of their operations, there will be opportunities to acquire those companies that are struggling now. As they expand into more markets, SkyWest can ensure that their customer base will be large enough to support them in the event of economic difficulties. With an estimated growth of over 5% per year through 2030, successfully acquiring new businesses that already have contracts, equipment and passengers will only prove to be profitable in the future.
SkyWest should focus on lowering maintenance costs. As discussed in Exhibit 7, the current disputes between SkyWest and its’ major partners over maintenance costs will continue to be an important factor. Delta has stated that it will continue to shrink the number of the smaller 50 seat jets that make up a large portion of SkyWest’s fleet. In order to stay ahead of industry rivals, SkyWest should begin a process of eliminating many of these type jets out. With Delta wanting to lower the number of these jets that fly their Delta Connection operations, this will leave SkyWest with the full cost of maintenance on these aircrafts.
SkyWest should reallocate some of their fleet of larger aircraft to replace those that they phase out. A second issue regarding rising maintenance costs is the fact that many of the aircraft in their fleet are no longer under any type of warranty. Many parts from their CRJ 200and ERJ 145 no longer have any type of warranty. This further advances my recommendation that these two aircrafts should be phased out. Streamline operations with new acquisitions. SkyWest’s recent acquisition of ExpressJet and ASA has presented new challenges to SkyWest’s business model.
As with any new additions to a company’s business practices, they will have to quickly and efficiently merge operations. SkyWest has admitted that they did not thoroughly evaluate all aspects of ExpressJet and ASA. As a result, the initial expectations for an easy merger were incorrect. SkyWest’s operating margin of 1. 1% was down from 7. 3% the previous year. The major contributing factor to this was the merger issues with ExpressJet and ASA. SkyWest posted operating profits of just $41 million, down almost 80% from the previous year.
If SkyWest will continue to be an industry leader, they will have to focus on an attempt to move their previously successful practices to ExpressJet and ASA SkyWest should continue the pursuit of customer satisfaction A major part of SkyWest’s journey to the top of industry rankings was based on their approach to putting customers first. They consistently led industry ratings in baggage handling. In order to continue having opportunities to service the major airliners, SkyWest will need to ensure that the product they are offering is better than that of their rivals.
They should focus on continued employee training to ensure their employees are consistently ahead of rivals. Appendix Exhibit 1: Analysis of the Seven Components of the Macro-Environment 1. Natural Environment. Natural environment plays a role in the airline industry as certain times of the year and particular days in specific areas aircraft are unable to fly. A regional airline in the Northeast will face problems in the winter months that those in the Midwest will not meet. Different climates and weather patterns of regions will be a situation for all regional airline companies to face.
The airline industry is affected by fluctuation that included increased travel during the summer months and flight cancelations and delays owing to implement weather primarily during the winter. 2. Global Forces. Global forces do not play much of a role in the regional airline industry. Although SkyWest attempted to expand their geographic presence to Europe the majority of business is located in the United States and other countries in North America. 3. Political Legal and Regulatory Factors. Of the remaining forces, arguably the most significant forces are the political, legal, and regulatory factors.
Post- 9/11 fears of terrorist attacks have led to stepped-up government intervention in the industry through increased security regulations, leading to additional costs for the airlines. Each new governmental regulation creates a new cost for the airlines. For example the Department of Transportation considered a regulation to require the airlines to provided oxygen or passengers who needed oxygen. This proposal would have increased regional airlines’ costs by $ 262 million and $577 million over ten years. 4. Demographics.
The demographic component of the macro-environment has been quite influential in the airline industry. This goes hand-in-hand with the social forces component. There are two main types of passengers in the airline industry: business and leisure travelers. Business travelers tend to be more profitable for the airline industry since they travel more frequently. Also, business travel is not always planned out in advanced, forcing the business travelers to buy tickets at a premium price. Leisure passengers travel less and are more price conscious than business passengers.
Although, the regional airlines, through their contracts with the major carriers, serviced both market segments, their passenger base has historically been made up of more business travelers. Business travelers use regional airlines to commute to and from locations that are considered too far to drive. Traditionally, the major airlines, through their partnerships with regional airlines serviced almost the entire business market. However, an increasing number of business travelers had begun to travel on low-cost carriers.
The major airlines’ share of the business market dropped to 60 percent, while the low-cost carriers picked up to 20 percent. The major airlines responded to this drop by offering their own low-cost carrier lines. 5. General Economic Conditions. The airline industry is highly sensitive to fluctuations in the economy because a significant amount of travel for both business and leisure travelers is discretionary. The increasing price of jet fuel created financial problems for the airline industry, especially for the regional airline companies as their major airline partners pressured them for lower fees.
The recession in the early 2000s lowered the overall demand for airline services in the United States. In December 2008, the International Air Transport Association (IATA) predicted that markets would only last three years and by 2011 the travel market would grow 4 percent. The economic turbulence of major carriers creates both opportunities and threats for their regional partners. The majors rolled back operations and outsourced more of their routes to the regional airlines. Increased pressure on the major carriers to cut costs also forced their regional partners to accept lower fees.
Furthermore, the bankruptcy filing of major carriers increased the risk of regionals whose partners were in reorganization. Some regionals found it necessary to expand their base of partnership contracts and develop more revenue sources. ————————————————- 6. Technological Factors. Technology plays an important role in regional airline companies. Not only is keeping up with technological advances in aircraft, the airline companies are competing with technology in other arenas.
Live-feed programs on the computer that make business meetings possible without employees having to travel to other destinations reduce the number of business travelers that use regional airlines. The introduction of jets that were quitter, faster, could go longer distances, safer allowed the regional carriers to operate longer routes and run shorter routes more efficiently. Exhibit 2: Analysis of Porter’s Five-Force Model Using Porter’s Five-Force model, we will be examining SkyWest’s standing relative to its fellow competitors in the market.
One problem with this comparison is that most regional airlines are subsidiaries. SkyWest’s biggest independent competitors are Pinnacle Airlines Corp. , Republic Airways Holdings, Inc. , and Mesa Air Group, Inc. SkyWest views their main rivals to be Air Wisconsin Airlines Corporation, American Eagle Airlines (owned by American), Horizon Air Industries, Inc. (owned by Alaska Air Group, Inc. ), in addition to the other four largest competitors. Of the five forces, I estimate the rivalry among competing airlines is the strongest.
I assess this dynamic as strong to fierce. Rivals are competing not only for customers but also contracts from major airline carriers. Few regional airlines could come close to the statistics of traveling with SkyWest in 2004,2005,2007,2008, and 2009 they had the highest percentage of scheduled flights arriving on time. Comair (before it went out of business in September 2012), beat SkyWest in 2006 by . 6 percent. As for mishandled baggage reports SkyWest has reported behind ExpressJet, before SkyWest acquired them, and Pinnacle between the years of 2004 and 2009.
SkyWest is also competitive in not overselling their flights; they are amongst the top three between 2004 and 2009 for not denying boarding. SkyWest’s competitors tend to have fewer complaints in the years between 2004 and 2009. The edge SkyWest had on the market in customer satisfaction is quickly slipping as competitors in the regional airline industry step up and provide better quality customer service. Buyer demand has typically shrunk in this industry due to increasing prices to travel and the declining economy.
A small force is the threat of new entrants to the regional airline industry. With the cost of jets and the competitive nature of contracting with the major carriers make this industry difficult to break into. The competitive pressures stemming from supplier power are strong. With situations such as “scope clauses” that limit the size of aircraft that an outside partner can operate and the difficulty in acquiring new aircraft through capital and financing the supplier power is strong. Another key supplier to the regional airline industry is the fuel suppliers.
As the supply of fuel becomes more costly so did traveling via aircraft, deterring many travelers from traveling. A relatively neutral competitive force is the bargaining power of buyers. Regional airline industries’ product lines are well differentiated along the lines of destination, type of aircraft, departure times, and arrival times, to name a few. Most providers are competitive in price, the buyer can search for a better cost, but many times it is relative the same airline to airline. Customer service in the field is rapidly improving for all carriers as well as safety standards.
————————————————- As for substitute products they are none. A traveler may choose to drive to a destination, but in some instances that is not a possibility nor time-feasible. Businesses may choose to not send their employees to conferences and hold an online conference, but again this is not a logical solution to every situation. Exhibit 3: Analysis of the Industry Drivers of Change * Changes in long-term growth rate. The regional airline industry is currently experiencing a comparative upward shift.
The competitors in the industry realize this and know that it could die down if another economic downturn occurs. Although, it is difficult to get started in the regional airline industry the existing business are experiencing a minor increase in their numbers. * Changes in who buys the product and how they use it. There are two types of major passengers in the industry: business travelers and leisure travelers. Business travelers have turned to regional and low cost airlines opposed to the major carriers. This spurred the formation of low-cost carriers through major carriers.
The past years have shown that travelers have not used the airline industry, but that trend is picking back up. * Product and marketing innovation. As technology increases so does the aircraft. Newer jets acquired by the regional airline industry are faster, quieter, safer, and more efficient. * Regulatory influences and government policy changes. This is the most significant ————————————————- long-term driver of change in the regional airline industry. Airlines are subject to extensive regulatory and legal compliance requirements that result in significant costs.
The operations of SkyWest Airlines and ExpressJet are subject to regulation by the Department of Transportation (DOT), the Federal Aviation Administration (FFA) and other governmental agencies. The FFA requires operating, air worthiness and other certificates; approval of personnel who may engage in flight, maintenance or operation activities; record keeping procedures in accordance with FFA requirements: and FFA approval of flight training and retraining programs. The company incurs substantial costs in maintaining its current certifications and complying with the laws, rules and regulations.
A decision by the FFA to ground, or require time-consuming inspections of or maintenance on, all or any of its aircraft for any reason may increase significant additional costs to the company. In addition to state and federal regulation, airports and municipalities enact rules and regulations that after the company’s operations. Hence, the imposition of any limits on the use of SkyWest’s aircraft at any airport at which the company operate could have a material adverse effect on its operations. ————————————————- Exhibit 4: Financial Analysis
| 2011| 2010| 2009| 2008| 2007| Operating Revenues| $3,654,923| $2,765,145| $2,613,614| $3,496,249| $3,374,332| Operating Income| 41,106| 201,826| 212,195| 255,231| 344,524| Net Income (Loss)| (27,335)| 96,350| 83,658| 112,929| 159,192| Total Assets| 4,281,908| 4,456,148| 4,310,802| 4,014,291| 3,990,525| CurrentAssets | 1,280,464| 1,379,203| 1,254,099| 1,220,668| 1,210,139| Current Liabilities| 624,148| 572,278| 449,835| 386,604| 398,219| ————————————————- ————————————————- The last five years have shown mixed results for SkyWest.
After a significant drop in operating ————————————————- income between 2008 and 2009, there has been steady growth in this category since then. More telling of the company’s financial standing would be the operating income and net income. 2011 saw SkyWest post a net loss in income for the first time in many years. This can be attributed to SkyWest’s attempt to merge operations with ExpressJet and ASA. SkyWest looks to regain their financial standing in the years to come by more efficiently merging operations with future acquisitions.
Exhibit 5: Analysis of Industry Key Success Factors * Brand image is an important success factor in the regional airline industry. The largest regional carriers operate under a business model that relies on contracts with major carriers to generate revenues. SkyWest’s major contracts include Delta, United and Continental Airlines. The regional carriers paint their airplanes with the colors and logos of their major carriers, and flights are operated under the codes of their major carriers. An airline disaster can also influence how consumers view the brand image of an airline.
It is important that airlines provide a safe and reliable service at all times in the media. * Reliability of the product is one of the most important factors for regional airline success. SkyWest’s safety department voluntarily participated in the Aviation Safety Action Program, which is designed to be a reporting agency for pilots to determine potential safety hazards. Also, SkyWest also has strict maintenance routines. Reliability goes farther than safety and maintenance. Flights arriving and departing on time is extremely important to regional airlines.
SkyWest has constituent top percentage of on time flights along with Comair (prior to September 2012) and Pinnacle. SkyWest, Pinnacle and ExpressJet have the lowest number of mishandled baggage; making those companies some of the most reliable in their industry. Mesa, American Eagle, Pinnacle and SkyWest have the least number of involuntary denied boardings due to oversold flights. There are very little complaints amongst the large regional airlines overall. * ————————————————- Superior product differentiation is also a success factor.
There were two major choices of type of aircraft used by regional carriers: the turboprop and the regional jet. The uses for these two aircraft complemented each other. The turboprop was used for short flights and was able to land on shorter runways. Many travelers are hesitant to ride on turboprops, given the perception that they are loud and uncomfortable. The Bombardier Q series turboprop is equipped with noise and vibration levels to those of a regional jet. Regional jets, on the other hand, are able to service much farther destinations.
The Bombardier Regional Jet allowed the regional carriers to operate longer route and run shorter routes more efficiently. More travelers felt safer and more comfortable on the Bombardier Regional Jet and preferred to travel via regional airlines on this type of aircraft. Exhibit 6: Analysis of the SkyWest Strategy SkyWest’s mission statement is to be “The Airline of Choice-The Employer of Choice-The Investment of Choice. ” In order to do this, they employ a best-cost strategy by providing passengers with a very good product that is competitively priced against their main competitors.
SkyWest has long been associated with highly rated baggage handling. This coupled with their attention to customer satisfaction has kept SkyWest near the top of airline industry rankings for many years. In order to create business opportunities for the future SkyWest successfully completed the process of obtaining a single operating certificate for Atlantic Southeast Airlines (ASA) and ExpressJet. This move will give SkyWest a larger market share, especially if they are able to successfully turn around the business practices of the two acquisitions. SkyWest is currently in the middle of a three year engine overhaul cycle.
These two factors, coupled with SkyWest’s attempts to strengthen and expand existing partnerships, will strengthen their market share and the sustainability of their fleet. Other factors that will make SkyWest the airline of choice will to continue having on time arrivals, providing expert customer service, handling baggage correctly, among other activities to draw the consumer towards the company. ————————————————- A key factor in the company’s employee relations will be the successful integration of the current SkyWest employees and those of ASA and ExpressJet.
As SkyWest attempts to fully integrate each company into its company operations, SkyWest will have to determine the best course of action to combine each company’s strengths, and cut out the weaknesses. ————————————————- In order to be an investment of choice, SkyWest will have to present and align itself to acquiring partners successfully. They will have to continue to perform top maintenance on their fleet and keep high safety recommendations. They will have to perform at the top levels all across the industry’s playing field.
For investors to be interested; SkyWest will have to out shine their competitors and perform at reasonable operational costs and produce decent profits. ————————————————- Exhibit 7: Analysis of SkyWest’s Business Model ————————————————- SkyWest’s business model is not one that they have total control over. Regional airlines such as SkyWest depend on the major airliners in the market to provide them with business. In order to control costs and minimize risk, SkyWest receives most of their revenue from fuel and maintenance charges to the major airlines.
This model has long been sufficient to create substantial profits for SkyWest. Recently however, major airlines have started cutting seats and trimming routes. The result was that SkyWest’s fleet saw a drop in average flight time for each aircraft. This has led to costs rising faster than compensation. ————————————————- A major part of SkyWest’s fleet are smaller, 50 seat jets. Almost 70% of their fleet is comprised of these smaller aircrafts. One of the main issues they are facing is that as these aircraft age, maintenance costs will continue to rise.
Delta and other major airlines have continued to scale back their operations concerning these smaller jets. As these cuts occur, the major airlines will no longer cover maintenance costs, leaving SkyWest to cover the entire cost. Exhibit 8: SWOT Analysis of SkyWest Strengths| Weaknesses| * Robust operational network * Strong aircraft fleet| * Increasing maintenance cost due to aging fleet| Opportunities| Threats| * New Partnership agreements to provide organic growth * Growth in air passenger travel in the U. S.
| * Intense competition * Increase in aircraft fuel costs * Stringent governmental regulation| The combined operations of SkyWest extend throughout most major geographic markets in the U. S. The company offers scheduled passenger service with approximately 4,000 daily departures to destinations in the U. S. , Canada, Mexico and the Caribbean. In 2011 SkyWest airlines offered approximately 1,650 daily flights, of which approximately 1,110 were United Express flights, 500 were Delta connection flights, 30 were Alaska-coded flights and 10 were U. S. Airways Express flights.
The company’s strong network infrastructure enables it to gain access to key markets as well as enhance the quality of its delivery services. SkyWest is the largest operator of Embraer 145 regional aircraft and Bombardier regional aircraft. In 2011 SkyWest’s consolidated fleet consisted of a total of 732 aircraft, 442 of which were assigned to United and Continental and 268 assigned to Delta. The large operational fleet gives SkyWest a strong base of revenues to work from to drive future cost reductions and enhance its ability to deliver flexible solutions to its major partners.
It also allows the company to respond quickly to opportunities in any part of the country with a wide range of aircraft assets. With a fleet as large as SkyWest’s the maintenance costs can be costly. In fact, they have increased by more than 46% during 2011. The company has 266 CRJ200s, which have a life span of 10. 2 years, 242 ERJ145s with a life span of 10 years and 45 EMB 120s with a life span of 14. 5 years. Maintenance costs will continue to increase on the CRJ200s and ERJ145 fleets since the parts are no longer under warranty.
Under company agreements to its subsidiaries SkyWest has allotted specific amounts for maintenance work on its fleets; therefore SkyWest could experience further losses as the actual cost of maintenance on CRJ200 engines may vary from the agreed upon rates. Increased costs will have a negative impact on its financial results and ability to compete effectively in the market. SkyWest further expands and diversifies its partner relationships through new agreements with U. S. Airways, Alaska Airlines and American Airlines. U. S. Airways signed a letter of intent for 14 aircraft to operate as U.
S. Airways Express for three years. SkyWest also began flying six West Coast for Alaska Airlines. The new agreements with new partners will provide the company with growth opportunities. The Federal Aviation Administration predicts that the airline passenger travel will double in the next twenty years. Since SkyWest, via its subsidiaries, offers passenger transport primarily in the U. S. they will benefit from the growing air passenger travel. The airline industry is highly competitive and is characterized by low profit margins, high fixed costs and predatory pricing.
SkyWest will experience the following competitive factors; fare pricing, customer service, routes served, flight schedules, aircraft types and agreements with major partners. The principle competitors of SkyWest among regional airlines with code-share agreements include; Air Wisconsin Airliner, American Eagle, Compass Airlines, Horizon Air, Mesa Air Group, Pinnacle Airlines and Republic Airways. Intense completion will lead to price wars, which in turn will negatively impact the cost structure and the profitability of the company.
International prices of crude oil and refined products have fluctuated widely due to factors that are beyond the control of SkyWest. In 2011 the price of jet fuel rose by 39% over the year. The price of fuel will continue to increase causing the airline industry’s fuel bill to rise to $1 billion. ————————————————- Airlines are subject to extensive legal and regulatory requirements that result in significant costs. The FAA, DOT and other governmental agencies require training, record keeping and certifications in maintenance, personnel, administration and other areas.
Any broken regulation could lead to time-consuming inspections, maintenance requirements or even grounding. Airports and municipalities also enact rules that affect the company’s operations. Due to these many factors, any limitation on SkyWest’s business practices could have a material adverse effect on its operations. Exhibit 9: A Competitive Strength Assessment of Key Industry Players Airline(not including subsidiaries)| Profit Margin| DailyDepartures| Number of Routes Served| States Served/ Foreign CountriesServed| Aircraft Types| Relationships with Major Partners| SkyWest| 1.
1| 1,887| 166| 37/2| Bombardier CRJ200 (158)Bombardier CRJ700 (94)Bombardier CRJ900 (29)Embraer EMB-120 (42)| Delta Airlines Midwest AirlinesUnited AirlinesContinental Airlines| American Eagle| -7. 55| 1,500| 170| 38/20| Bombardier CRJ (47)Embraer 145 (118)Embraer 140 (59)Embraer 135 (21)ATR72 (36)| American Airlines| Mesa Air Group| 1. 25| 465| 96| 37/2| Bombardier CRJ 900(38)Bombardier CRJ700 (18)Bombardier CRJ100/200(60)Embraer EERJ-145 (36)Dash 8-200 (16)Embraer Brasilia (2)Beechcraft 1900D (34)| United AirlinesU. S.
AirwaysMidwest AirlinesDelta Airlines| Republic Airways| -5. 30| 1,500| 48| 27/1| Q400 (3)Embraer 170 (18)| American ConnectionContinental AirlinesDelta AirlinesMidwest AirlinesUnited AirlinesU. S. Airways| I am comparing the competition between these four airlines due to the number of routes and daily departures. I left out Comair since it went out of business in September of 2012; I left out Pinnacle Airlines considering it filed for Chapter 11 bankruptcy in April of 2012. American Eagle and Republic Airlines are projected to merge mid-2013.
As we can see American Eagle reaches the most diverse audience and when it combines with Republic Airways they have everything they will need to dominate the market. I am comparing the competition between these four airlines due to the number of routes and daily departures. I left out Comair since it went out of business in September of 2012; I left out Pinnacle Airlines considering it filed for Chapter 11 bankruptcy in April of 2012. American Eagle and Republic Airlines are projected to merge mid-2013.
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