SKYWEST

SkyWest



SkyWest

SkyWest Airline

SkyWest Airlines (formerly known as Advent Air) is a diversified airline, aerospace and investment group in Australasian and South East Asia region. The company is involved in regional airline operation and holiday package supplier in Western Australia. It operates commercial aircraft for charter and regular scheduled air passenger traffic. It is also involved in aircraft leasing, finance and parts procurement services. In addition, the company is involved in trading of quoted and unquoted securities. The company operates in Singapore and Australia. It is headquartered in Singapore City, Singapore (Lott, 2005).

The company recorded revenues of S$239.9 million (approximately $185.6 million) in the fiscal year ended June 2011. Its net profit was S$9.8 million (approximately $7.6 million) in fiscal 2011.

Industry

The global airline industry consists of airline firms offering domestic air transportation and/or cargo through routes based on a regular schedule. Companies whose main business were providing mail using the air transportation of mail is also a part of the industry. In December 2006 the International Air Transport Association (IATA) that passenger revenues would rise by five percent to $475 billion and cargo revenues would rise by six percent to $380 billion by 2007. The IATA also predicted that the industry gain profits of about $2.5 billion since the 9/11 terrorist attack in 2001.

There are three types of domestic airline carriers: network, low cost and regional carriers. Each of them operate under different business models. Network carriers also refereed to as major carriers operate flights using the hub-and-spoke system. major hubs in the US are located in major cities such as San Francisco, Salt lake City, Dallas, and Chicago. The major networking airlines in the industry are united, Northwest, American Continental, and Delta. Their combined revenue in 2005 made up of about 82 percent of the total $25.3 billion revenue generated by the 10 largest airlines.

Low-cost carriers operate at a low-cost business model, they use the point-to-point flight system. the largest carrires in the model are Southwest and JetBlue. Regional carriers specialized in short-haul flights that caters to small towns and communities using small jets. They primarily operate to feed passengers to major hub airports. About 95 percent of regional airlines are conducted for this purpose.

The U.S. airline industry is affected by seasonal fluctuations and the economy. For example there are more passengers during summer and holidays. Also during a recession there are decreases of passengers due to high cost and consumer confidence. There are two types of passengers in the industry: business and leisure travelers. Business travelers are more profitable that leisure travelers because they tend to fly more frequently and are more likely to purchase tickets last minute at a premium price. Leisure travelers flew less and are more price-sensitive.

SkyWest's Strategy

SkyWest Airlines was founded in 1972 in St. George, Utah. SkyWest Inc. operates as a regional airline by partnering with major airlines such as United and Delta. They cater to major airlines by transporting customers to major hubs and service to shorter ...