SkyWest Strategic Audit Stefan Johnson Allan Padua Mike Richardson Rachel Sa-Onoy Libby Schuster Clear Vision, Inc.

SkyWest, Inc.

SkyWest Inc. SWOT Analysis Strengths Weaknesses Strong reputation for safety, on time arrivals, and customer service Largest independently owned regional airline Partnerships with United and Delta Positive employee relations Smaller aircraft are perceived by public as being less safe ASA ranked near bottom in customer satisfaction Regional carriers limited geographically and can be affected by bad weather Opportunities Threats Expand outside the U.S. to China, Brazil, and Mexico Diversify operations to reduce dependence on Delta and United State of economy affect business Rising costs of fuel Pressure from major partners to accept lower fees

MESA Air Group SWOT Analysis Strengths Weaknesses Partnerships with United Airlines, U.S. Airways, Midwest Airlines, and Delta Good Reputation for customer service Filed for bankruptcy in 2009 to reduce fleet size Opportunities Threats Consolidate fleet and resources Focus on customer satisfaction Increasing cost of fuel State of economy Loss of contracts with major airlines

Pinnacle Airlines SWOT Analysis Strengths Weaknesses Ranks high in customer satisfaction Major airline partnerships with Delta and Northwest Airlines Involved in airline disaster when a plane crashed into a home in 2009 Opportunities Threats Focus on customer satisfaction and safety Pursue new contracts to increase scope of service Increasing fuel costs State of economy Loss of contracts with major airlines

Key Success Factors Acquire partnerships with major airlines High customer Satisfaction Strong safety image On-time arrivals

Pinnacle Airlines Corp. Key Success Factors   SkyWest Inc. Mesa Air Group Pinnacle Airlines Corp. Key Success Factors Weight Rating Weighted Score Major Partnerships .35 5 1.75 4 1.4 Customer Satisfaction .3 3 0.9 1.2 Safety Image .2 0.8 0.6 2 0.4 On-time Arrivals .15 Total 1.0 4.05 3.5 3.6

Financial analysis Net Profit Margin 3.2% 4.7% 5.7% 7.1% N.A. (2.2%)   2009 2008 2007 2006 2005 2004 SkyWest Inc. 3.2% 4.7% 5.7% 7.1% Mesa Air Group N.A. (2.2%) (6.3%) 2.7% 5.0% 2.9% Pinnacle Airlines (1.3%) 3.9% 9.4% 3.1% 6.4% Debt-to-Equity Ratio   2009 2008 2007 2006 2005 2004 SkyWest Inc. 2.01 1.96 1.99 1.97 2.43 0.99 Mesa Air Group N.A. 7.75 7.45 3.69 5.61 7.70 Pinnacle Airlines 11.61 19.23 11.3 2.11 11.30 (6.43)

Porter’s Five Forces Model Competitive Rivalry (Strong) Buyer’s Bargaining Power (Strong) Supplier’s Bargaining Power (Strong) Availability of Substitutes (Weak) Threat of New Entrants (Weak)

Attractiveness of the Industry Industry as a Whole (Not Attractive)

Historical View of Strategies (Typology)

Problems Recession

Implementation Plan Advertise to Increase Brand Awareness Member Reward/Incentive Program Repurchase Shares Upgrade Technology and Decrease Labor Costs Improve Flight Portfolio Increase Fleet in Operation Seek Out Partners, Absorption of Smaller Airlines Expand to Division of Low Cost Carriers and Regional Routes

Contingency Plan Failing Plan: Company Failure: Immediate Reissuance of stock Consolidation Though Sale of Weak Branches Reduce Service (cut out rural areas) Seek Further Partnerships and Mergers Company Failure: File Chapter 11 to Reorganize the Company Sell Off Assets to Repay Debt

Sources of Resistance

Ethical Implications of Recommendations