Skywest Primed for Turbulence
2009; De Gruyter; Volume: 46; Issue: 4 Linguagem: Inglês
ISSN
0002-2543
Autores Tópico(s)Aviation Industry Analysis and Trends
ResumoSkyWest Inc., the largest regional in North America, is in a healthy position to weather the downturn. Its two operating subsidiaries, SkyWest Airlines and Atlantic Southeast Airlines, have 2,300 daily departures to 218 destinations with a combined fleet of 442 regional jets and turboprops. Over the most recent five years, total operating revenue grew at a compound annual rate of 27 percent. Revenue comes mainly through its codesharing with Delta Airlines and United Airlines. It also operates 12 CRJ200s in an air service agreement with Midwest Airlines. Because of its strong contracts with Delta and others, SkyWest has been able to avoid significant restructuring of its agreements. Still, earnings fell 29.1 percent in 2007 as a result of retrenchment by its partners. Despite some legal disputes, including one with Delta dating back to December 2007 when it held back $25 million for irregular operation disbursements, the two companies maintain close business relationships. Both Delta and United have reduced their scheduled daily utilization, which in turn reduces payments they make to SkyWest. The airline is moving overseas, with a relationship with Trip Linhas Aereas, a small Brazilian carrier outside Sao Paulo, investing $5 million for a six percent share. It could end up with a 20 percent stake. The article also features selected results and makeup of its current fleet.
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