Skywest Case Study

Case #4: SkyWest

SkyWest’s strategy is known as a low-cost provider strategy. Some of the strategies they employed were:

* SkyWest acquired Atlantic Southeast Airlines (ASA) in 2005 and operated them as separate entities. In 2009, ASA & SkyWest continued to act as separate companies but began to combine certain activities such as IT services, and treasury services in order to cut costs. They maintained the idea of separate companies in order to identify strategies that could be beneficial when applied to both companies

* SkyWest partnered up with other companies in order to increase its customer base. Their partnership with major airlines such as Delta Airlines, United Airlines and Midwest Connect. This gave them a competitive advantage over other small airlines, as they were now operating with an increased number of routes and partners.

* SkyWest and ASA acquired more aircrafts, which were more cost effective than previous models. This also gave them a competitive advantage amongst other airlines, as aircraft operating costs were increasing but they managed to minimize theirs.

In terms of SkyWest’s resources and capabilities,

* As previously mentioned, the aircrafts recently acquired by SkyWest were more cost effective than other models, particularly where operating costs were generally increasing across the industry.

* SkyWest paid specific attention to the safety of their aircraft. They employed software that could track their safety and quality standards, ensuring they were always meeting or exceeding the limits. They also subcontracted their non-routine maintenance, ensuring optimal security and safety. This feature is a distinctive feature to SkyWest, which puts them at a competitive advantage.

* SkyWest employed over 11,000 people who were not part of a union contract. This proved that they maintained good relationships with their employees. This is a core feature, as motivating employees and maintaining good...