Topics: Regional airline, Delta Air Lines, Airline Pages: 14 (3942 words) Published: June 23, 2011

Strategic Management:
SkyWest Airline Marketing Strategy Formulation/Implementation

I. Introduction
Strategic management is the successful adaptation of the organization to its environments to gain sustainable competitive advantage. Its distinguishing characteristics include: Total Entity and Future Oriented. Company History

SkyWest, Inc. is a holding company for SkyWest Airlines which is headquartered in St. George, Utah. Originally, the company was meant to aid transportation for businessmen who were traveling between Salt Lake City and St. George, Utah. On April 26th of 1972, Ralph Atkin bought Dixie Airlines and started SkyWest Airlines. The operation included a Fixed Base Operation which offered maintenance for aircraft, as well as air charter services, flight school, and air ambulance services. That same year the company launched their passenger service and flew their first scheduled flight. At the time, flights would range in cost from $28 to $25 for trips from St. George to Salt Lake City or from Cedar City to Salt Lake City. That first year 256 people used the services offered by SkyWest. The following year, SkyWest added Las Vegas as a scheduled destination, while the first customer service manual was written and over two thousand passengers fly on the airline. In 1974, Jerry Atkin joined the company as the Director of Finance and while the company battled the question of whether to remain in business, almost twelve thousand customers used the airline, making a 650% increase.

Though 1974 saw such a dramatic increase in customers, 1975 saw over $300,000 in losses and no one would even take the company for free. The Director of Finance became the president at the age of 26. The following year, SkyWest became profitable with a net income of just over seventeen thousand dollars. The same year the company became debt free after paying off all of the creditors. By its five year birthday, over twenty thousand passengers were carried and inter-airline agreements were made. SkyWest received certification as the third commuter airline in the whole of the United States in 1978. The following year SkyWest enjoyed an expansion of flights between Page, Phoenix, and Flagstaff. The passenger growth rate for SkyWest increased thirty eight percent in 1979. By 1980 eight city routes were established with an increase in passengers by forty seven percent. The ten year anniversary of SkyWest brought with it a net income of $123,000 and a total of 81,000 passengers. By 1984, SkyWest became the eleventh largest airline in the country, overturning a profit of 45%. By 1986, SkyWest was offering shares on the NASDAQ and Delta Airlines allowed the company to become a carrier. That same year, SkyWest hired their first training class. It was in 1997 that SkyWest partnered with United Airlines. They partnered with Midwest Airlines in 2007. Currently, SkyWest employs over eleven thousand employees and operates over one thousand, six hundred flights. II. The Strategic Management Process

The strategic management process includes two stages with five interactive steps. The Strategy Formulation includes the following: 1.Vision
2.Objectives (strategic & financial)
3.Crafting strategy
Strategy Implementation includes the following:
4.Executing Strategy
5.Evaluation & Control
III. Strategy Formulation
Mission Statement
The purpose of this company is very simple and concise. The company strives to be the: • Airline of choice
• Employer of choice
• Investment of choice
Their guiding principles include:
• Health and Safety First
• Excellent Service and Quality
• Personal and Operational Reliability
• Fairness and Consistency
• Respect and Teamwork
• Personal and Corporate Integrity
• Superior Profitability and Efficient Use of All Resources

At SkyWest, the...
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