Front end of Sky West Inc - Case Study Example

Sky West Inc. was named the regional company of the year since 2006 depicting customer satisfaction. However, Sky West Inc. faces a challenge of increased and fluctuating fuel costs and it is the aim of this report of the alternatives strategies for implementation by management to overcome the challenge and recommend the best alternative. The first alternative available for Sky West Inc. is to improve the fleet of aircrafts to have better technology, be bigger, and efficient in flying both short and long distant locations.

Improving the fleet will provide Sky West Inc. the chance to increase destinations and augment the ability of the company to compete with established airlines. The current fleet requires large maintenance costs and affects the ability of the company to make large contracts with major airline companies to fly for long distances. Pros: several benefits will accrue from the implementation of the strategy including low fuel consumption from the increased efficiency in fuel consumption by the more technologically advanced aircrafts.

Another benefit from the alternative is the augmented efficiency of operations from the improved fleet allowing for a reduction in maintenance costs and decreased breakdowns reducing operation costs for the company. Time-saving on maintenance and repairs will allow Sky West Inc. access better returns from the increased times of flying with the new flight compared to old fleet that have to be frequently grounded for maintenance and repairs. Improving the fleet will also put Sky West Inc. at a better position of competing with international aviation companies for greater market share and propel it beyond regional aviation service provision.

Cons: the main disadvantage with the alternative is the high cost of implementation. The high costs are as a result of the need to phase out old fleet resulting in losses owing to sale at lower price or minimal use reducing return on assets ratio.