Thread: Skywest
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Old 01-02-2015 | 02:50 PM
  #8460  
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ClickClickBoom
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From: Prime Leader of Boko Harumph
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Originally Posted by CloudShredder
Not in the game yet. Will be soon. I've been figuring out all that I can the last few years. I'm just curious about your pessimistic idea that SkyWest wants to shrink and lose business. The big question that we're all curious about is why? What does the company have to gain by shrinking, and why would they be getting new aircraft and new contracts if they plan to shrink?

Only thing I can gather is that the pilot group is becoming top heavy and expenses to operate are ever increasing, and by shrinking they will mitigate costs. I'm just not fully comprehending so your insight was/is appreciated...
Econ 101,
Would you rather sell tickets on a 2 seat plane at a million dollars each or 50 tickets at 2 dollars each on an RJ? Both to the same destination....
Pilot costs are a small component of the operating costs when comparing 7th year captain vs 18th year captain. The average Internet solution of "just fly more flights, with me as the captain" is not going to solve the issue. Read the Skywest 10 K and 10 Qs understand them. Then you will be on the path to understand the industry.