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Skywest Bod Recommdation


Submitted By leech
Words 401
Pages 2
Next, let’s move to response to recommendations. The executive team gives three main problems, which are SkyWest Reliance on United and Delta for its customers and revenue, Atlantic Southeast Airline’s poor customer service, and SkyWest has High Operating Costs as compared to competitors. However, the executive team just focuses on first two of them and gives the recommendations. The first recommendation is try to acquire contracts with low-cost providers, such as Southwest and JetBlue. We are agreeing with this recommendation. Because, if SkyWest only rely on United and Delta, it will increase their financial risk, assume one of them have a financial or managerial problem, the SkyWest will have a hard time, and that not only will affect their total revenue, but their public reputation and the power of competitive in this market. Also, only have United and Delta will limited the resource of income; therefore, find some more copartner is reasonable, but due to the SkyWest’s financial situation, the low-cost providers can be on the list. However, the question is whether Southwest and JetBlue, they are individual company, and they doing well on their business, so why they will come to SkyWest? What benefit that SkyWest can provide to those companies due to their current finical situation or the future years? We need more detail. The second recommendation is SkyWest share customer service strengths with ASA. And we agree with this recommendation. For any customer, when they choose aircraft as their way to transport, they will focus on the safety, the comfort, and the service. ASA has very low service satisfaction and is ranked near last among regional carriers, which it will seriously drag down the reputation of ASA, also drives potential customers away. The SkyWest has great service and good reputation, so let SkyWest help them will be the good choice, and can save the money, because SkyWest Airlines in a partnership with Delta Connection. The executive team didn’t give the recommendation for the third problem-High Operating Costs as compared to competitors. We think high operation cost could be a critical thing for increasing revenue. We recommend look at the financial report find out which are the most costly part, then try to optimize that. Also look at other type of aircraft, do they more fuel friendly, because right now the fuel expense is extremely high, so how to decrease the fuel expense is important.

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