Skywest
INDEX
1. DOMINANT CHARACTERISTICS OF THE INDUSTRY 3 1.1 WHAT ARE THE DOMINANT CHARACTERISTICS OF THE US REGIONAL AIRLINE INDUSTRY? 3 1.2 WHAT IS THE RELATIONSHIP OF THE INDUSTRY TO THE NATIONAL AND GLOBAL AIRLINES? 5
2. PORTER’S FIVE FORCES ANALYSIS 7 2.1 RIVALRY AMONG COMPETING SELLERS (HAS THE GREATEST IMPACT ON COMPETITION) 7 2.2 THREAT OF NEW ENTRIES 8 2.3 THREAT OF SUBSTITUTES 8 2.4 BARGAINING POWER OF SUPPLIERS 9 2.5 BARGAINING POWER OF BUYERS 9
3. KEY SUCCESS FACTORS 11 3.1 YIELD 11 3.2 LOAD FACTORS 12 3.3 UNIT COSTS 13
4. DRIVERS OF CHANGE FOR THE REGIONAL AIRLINE INDUSTRY 15
5. SKY WEST STRATEGY 17 5.1 FUNDAMENTAL ASPECTS OF SKY WEST’S STRATEGY: GROWTH STRATEGY 17 5.2 GENERIC STRATEGY 18
6. SWOT ANALYSIS 19 6.1 STRENGTHS 19 6.2 WEAKNESSES 20 6.3 OPPORTUNITIES 20 6.4 THREATS 21
7. RECOMMENDATIONS 22
8. BIBLIOGRAPHY 23
1. DOMINANT CHARACTERISTICS OF THE INDUSTRY
1.1 WHAT ARE THE DOMINANT CHARACTERISTICS OF THE US REGIONAL AIRLINE INDUSTRY?
Regional airlines are airlines that operate regional aircrafts to provide passenger air service to communities without sufficient demand to attract mainline service.
Regional airlines used to travel shorter distances with poorer aircrafts. Today, regional aircraft are getting larger, faster, and are flying longer ranges.
Regional airlines are considered to be their own segment, apart from legacy carriers because they do not offer 'long-haul' flights to international or intercontinental destinations. In many cases, regional airlines also sell all or most of their flights to larger legacy carriers such as US Airways, United, and Delta, which offer long-haul and short-haul flights.
There are primarily two ways for a regional airline to do business: 1. As a feeder airline, contracting with a major airline, operating under their brand name, filling two roles: 1. Deliver passengers to the major airline’s hubs from surrounding
1. DOMINANT CHARACTERISTICS OF THE INDUSTRY 3 1.1 WHAT ARE THE DOMINANT CHARACTERISTICS OF THE US REGIONAL AIRLINE INDUSTRY? 3 1.2 WHAT IS THE RELATIONSHIP OF THE INDUSTRY TO THE NATIONAL AND GLOBAL AIRLINES? 5
2. PORTER’S FIVE FORCES ANALYSIS 7 2.1 RIVALRY AMONG COMPETING SELLERS (HAS THE GREATEST IMPACT ON COMPETITION) 7 2.2 THREAT OF NEW ENTRIES 8 2.3 THREAT OF SUBSTITUTES 8 2.4 BARGAINING POWER OF SUPPLIERS 9 2.5 BARGAINING POWER OF BUYERS 9
3. KEY SUCCESS FACTORS 11 3.1 YIELD 11 3.2 LOAD FACTORS 12 3.3 UNIT COSTS 13
4. DRIVERS OF CHANGE FOR THE REGIONAL AIRLINE INDUSTRY 15
5. SKY WEST STRATEGY 17 5.1 FUNDAMENTAL ASPECTS OF SKY WEST’S STRATEGY: GROWTH STRATEGY 17 5.2 GENERIC STRATEGY 18
6. SWOT ANALYSIS 19 6.1 STRENGTHS 19 6.2 WEAKNESSES 20 6.3 OPPORTUNITIES 20 6.4 THREATS 21
7. RECOMMENDATIONS 22
8. BIBLIOGRAPHY 23
1. DOMINANT CHARACTERISTICS OF THE INDUSTRY
1.1 WHAT ARE THE DOMINANT CHARACTERISTICS OF THE US REGIONAL AIRLINE INDUSTRY?
Regional airlines are airlines that operate regional aircrafts to provide passenger air service to communities without sufficient demand to attract mainline service.
Regional airlines used to travel shorter distances with poorer aircrafts. Today, regional aircraft are getting larger, faster, and are flying longer ranges.
Regional airlines are considered to be their own segment, apart from legacy carriers because they do not offer 'long-haul' flights to international or intercontinental destinations. In many cases, regional airlines also sell all or most of their flights to larger legacy carriers such as US Airways, United, and Delta, which offer long-haul and short-haul flights.
There are primarily two ways for a regional airline to do business: 1. As a feeder airline, contracting with a major airline, operating under their brand name, filling two roles: 1. Deliver passengers to the major airline’s hubs from surrounding