SkyWest and the US regional airline industry

Holger Bodenmüller

04/2014 · GRIN Verlag

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Seminar paper from the year 2011 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, University of applied sciences, Munich, course: Strategic Corporate Management, language: English, abstract: The U.S. regional airline industry makes most of its money on basis of partnerships with major U.S. airlines. The whole market is characterised by a strong competition, a trend for consolidation and financial problems especially of the major airlines following the terrorist attacks on 09/11/2001. Analyzing the competitive situation the forces of suppliers, rivalry among competitors and especially buyers (customers, and contract partners) turn out to be strong. Several factors will cause change indicating severe impacts on the whole industry. SkyWest Inc. turns out to be a key player in the U.S. regional airline industry and is a candidate for further acquisitions. On the short run the price of growth is an increase in debt and a decreasing net profit margin due to rising operating costs. Several recommendations could help SkyWest Inc. to further extending the Group's leading edge over its competitors.