Formation of alliances by Mesa airlines led to the collapse. For example, as alliances with one of the UAL Corps United Airlines are some of the contributing factors that led to the collapse of the Mesa group in the corporate trust market. Mesa had carried out its operations at the United Express, which handled much of United's connecting service between Los Angeles International Airport and smaller Western cities. This provided contributions to the collapse of the company. In October 1997, United hired SkyWest Inc. to operate in place of Mesa on its LAX-related services, and later, United replaced Mesa on its Denver-bound United Express service. The hiring of the Sky West Inc. to replace Mesa took the majority of the airlines customers. These replacements were a lot and, therefore, contributed to the collapse. In addition, the lost incurred through loosing the routes was a tremendous blow to the company, in addition to other problems. For instance, Mesa airlines flew to many other routes with poor load such as too many empty seats. This increased the overall operation cost with low returns. Moreover, Mesa’s founder resigned as the chairman amidst the growing complains from the institutions investors and analysts.
What could management have done differently?
To cut down the cost of operation, the management could have reduced the number of flights per time to reduce the instances, whereby the airlines operated with too many empty seats. The replacement of the management staff contributes to the poor overall performance of Mesa Airlines. The management ought to have sit down and chat the best ways to tackle the issue other than blaming each other. The best thing that the management did was to employ Risley, who acted as the director. He has been aggressively restructuring Mesa in restoration of its profit margins. Risley led a group that owned 6% of Mesa's stock. He has also added more efficient and faster jets to its 110-plane fleet, which comprise of mostly older turboprop aircraft.
Explain how a code-share agreement works between a regional and a considerable airline carrier.
It is an aviation organization arrangement, where two or more airline companies share the same flight. In this way, a seat can be purchased on a different airline, but it operates by another cooperating airline under a different code. The term code refers the identifier, used in the flight schedule. Under this code sharing, agreement, the airline that operates the flight at that time provides the crew and other ground handling services, therefore, called the carrier, while the company that sells the tickets but do not operate the flight called the marketing.
Explain how contracts are obtained and how the regional contract can be paid.
Obtaining of contracts is through signing of agreements between the companies through a governing body, which is responsible for all the payments that are to be made. The ability of an airline to receive a contract, restricted by laws and regulations, is only the subject to the approval of the authorities. The landing rights might not be owned by a specific airline but by the nation in which their head office resides.
What made SkyWest grow so successfully from 1987 to 2008?
In the year 1987, the Air transport named the Sky West was the commuter airline of the year. During this year, they launched the Brasilia services, which constituted of a fleet of 41 aircrafts. It purchased the Canyon Air service. In the consequent years, Sky West doubled in size due to hard work and code sharing, with the gradual increase of the flights number. Between 2000 and 2008, Sky West created the People department, which has human resources services, marketing and recruitment services and internal as well as external communication department. It has added numerous routes, as it enhanced the security of the airlines. They have, over time, developed new maintenance and Crew Bases, which have enhanced their services. It has, over time, assumed financial risks, for instance, the financial risk they assumed with the Delta Connection EMB. This airline has had a remarkable leadership record, which have been the reasons for its success. They have a new state of art maintenance facility, which has also boosted its work.
What are some of the success formulas that SkyWest management has applied to their airline?
Some of the success formulas, employed by the skyline services, include high level of maintenance of their aircrafts, increasing the number of routes, increasing the number of jets, renewing and replacement of the old jets with the modern ones as well as enhancing the level of security within their freight services. They have formed alliances with several other companies, through signing of the code share agreement. This has boosted the marketing and the networking of the company’s profile. Increasing the number of routes ensures that there is maximized carriage services offered as well as ensuring that there are no routes left out. Good leadership, employed by the president and the other managerial bodies of the company, ensures that all the resources are used maximally. The spirit of Sky West airlines of ensuring security first and the finances later has boosted the performance of the company. Sky West has employed more workers at different departments to boost the work output and to ensure superior quality work.
How does the airline maintain its enviable record of profitability?
The record of profitability is maintained through hard work and commitment. This airline company has replaced its old jets with new ones. Formation of alliances has also boosted the performance of the company. The stay in delightful high maintenance of the jets has ensured that the jets stay in favorable conditions for a long period of time, which reduces the cost of repairs and other incurred costs. The company has maintained the routes with lots of passengers, therefore, few of its flights made with many empty seats. The introduction of the new routes has boosted the profits of the company.
Apply some of the lessons learned about Southwest Airlines to the regional airline environment.
For the success of any airline, all the ways and means of making it a success should be employed. Formations of alliances, as well as the code share agreements, certainly boost the overall performance of an airline. Formulation of ways to cut down the costs, incurred to offer services, is undoubtedly vital. Scaling up is essential in the overall performance of any airline company. In terms of security, all airline companies have to scale up the level of security to make the customers feel safe and secure. In essence, all the companies should adhere to high level of maintenance of their aircrafts, increasing the number of routes. Moreover, they need to increase the number of jets, renew and replace the old jets with the modern ones, as well as enhancing the level of security within their freight services. They should be able to take up financial risks, which are for the good of the company.