Enplanements jump to 318,964, revenues are $38.6 million, and there are profits: $1.1 million (operating) and $546,000 (net).
In January 1995, a Fokker 50 is wet-leased from Flugfelag Islands, H. F./Icelandair. It is joined in May by the first of the new Fokker 50s and placed in service from Stockholm’s Arlanda Airport to Borlange and Visby in Gotland. The fleet is also increased by 13 SAABs and by the second Fokker 50, which is delivered in August. A bright new livery is introduced in September.
Destinations visited in 1996 include Arvidsjaur, Borlange, Copenhagen, Gallivare, Kramfors, Lycksele, Orebro, Pori, Storuman, Trolihat-tan, Vilhelmina, and Visby.
Enplanements for the year total 565,830.
In order to guarantee itself feed, the company, in March 1997, takes 91% majority ownership in another regional, Highland Air, A. B. The Highland company name and management remain unchanged.
Acting on behalf of Kendell Airlines (Pty.), Ltd., Ansett Australia (Pty.), Ltd. agrees in May to trade four Fokker 50s to Skyways in exchange for four SAAB 340As.
New routes opened during the year include Borlange to Copenhagen, Stockholm (Arlanda) to Bergen and Jyvaskyia, and Goteborg to Umea and Sundsvall. Twice-daily roundtrips between Malmo and Vasteras commence on October 13.
Passenger boardings during the 12 months increase 18% to 667,520.
Destinations visited in early 1998 include Arvidsjaur, Bergen, Borlange, Copenhagen, Gallivare, Goteborg, Hutsfred, Kiruna, Kramfors, Linkoping, Lycksele, Malmo, More, Orebro, Oskarshamn, Pori, Stockholm (Arlanda Airport), Storuman, Sundsvail, Trollhattan, Umea, Vasteras, Vihelmina, and Visby.
At the request of officials in Gallivare, a second daily Fokker 50 roundtrip is initiated on January 12 between that city and Stockholm (Arlanda). Twice-daily J-32 return service is inaugurated by the Highland Air, A. B. subsidiary on February 16 between Malmo and Orebo, while the number of daily roundtrips from Malmo to Vasteras is boosted from two to three.
On April 29, a 25% stake in the carrier is purchased by SAS (Scandinavian Airlines System). Against the advice of some of his closest advisors, Chairman Palmer pushes the arrangement as a measure to ensure the airline’s future development and to end a period of aggressive, if not always successful, competition with the multinational major. Skyways becomes a regional partner of SAS (which is allowed to nominate one member to the Skyways Holding board), retaining its independence and even the livery on its airplanes. A strategic marketing pact is signed between the two airlines under which the two begin to code-share and sell tickets on each other’s flights; Skyways is able to participate in the SAS EuroBonus frequent flyer program.
An order for two Embraer ERJ-145 ExpressJets is placed on October 15, together with three options. On October 2, Skyways purchases Air Express I Norrkoping, A. B. from Thomas Sjo, intending to maintain the Air Express identity and expand its route network so as to more effectively feed the new parent at Stockholm
The first two ERJs arrive in late November and early December.
Enplanements during these 12 months total 759,000 on 40,983 scheduled departures. Revenues jump 24% to SKr 879 million and a net profit of SKr 41 million ($4.9 million) is generated.
The workforce at the start of 1999 totals 513, a 7% increase over the previous year. Plans are announced for the recruitment of 40 new employees to handle connections at Arlanda Airport, where Skyways is now the second-largest operator in terms of takeoffs and landings, and 20 for Gothenburg.
New twice-daily ERJ-145 international services, operated in cooperation with SAS (Scandinavian Airlines System), are inaugurated on January 11 from Goteborg to Helsinki. Goteborg’s Landvetter Airport becomes a new RJ second hub for the company and a viable alternative to Stockholm’s Arlanda Airport.
At the end of March, ERJ services are launched from Goteborg to Brussels and from Stockholm to Vaasa, Pori, and Bergen, from Vasteras to Oslo, and from Linkoping, Vaxjo, and Borlang to Copenhagen. Orders are placed on April 12 for two more ERJ-145s.
Total acquisition of Air Express I Norrkoping, A. B. and Highland Air, A. B. by Skyways is completed on May 12. Their routes are now completely integrated in Skyways’ national and international traffic systems. The same day, Jan Palmer moves up to become president/CEO of Skyways Holding, A. B. He is succeeded as president of the airline by Skyways Flight School Vice President Kjell-Ake Westin; Peter Korning, Skyways production manager, becomes the new vice president.
As the result of a ruling by the EU Commission in June, previously expended environmental fees of SKr 27.5 million for 1995-1996 are credited to Skyways’ revenues. Planning begins for a group stock exchange listing; however, the timing of the application to the Stockholm Stock Exchange is uncertain.
Employing the carrier’s newly delivered fourth ExpressJet, new twice-daily ERJ-145 return services are introduced between Stockholm and Manchester on October 31. A morning service is offered on Saturdays and an evening service on Sundays. Also on Halloween, Skyways takes over the SAS (Scandinavian Airlines System) service from Stockholm (Arlanda) to Zurich.
When Braathens, A. S. stops flying from Halmstad to Stockholm, Skyways takes the route over, flying it with Fokker 50s. Enplanements for the year accelerate to 986,000 on 52,397 scheduled departures.
Airline employment totals approximately 700 at the beginning of 2000 and Skyways purchases total control of Airborne of Sweden, A. B. The Skyways Group now serves 32 destinations, 7 of them international. At this point, it moves to control another small feeder, this one facing some suspense, as it flies on behalf of rival Finnair O/Y.
On January 18, Skyways Holdings, A. B. agrees to purchase 900,000 A shares of Flying Enterprise, A. B. from Tipp Fastighets, A. B. for SKr 62.50 per share; B shares will fetch SKr 60 per share. The board of directors approves of the sale at a special meeting on February 15. The remaining B shares are purchased from other shareholders and the entire transaction is completed by February 28.
Rebranded Skyways Enterprise, A. B., the company’s agreement with Finnair O/Y is cancelled during the first week of March, leading to termination of the Helsinki to Mikkeli wet-lease service operated by Flying Enterprise. An ERJ-145 is leased on July 1 for six months to British Midland Airways, Ltd., which will base it at Birmingham to operate weekday roundtrips to Brussels and Frankfurt.
On September 29, Skyways is named “Regional Airline of the Year” by the European Regions Airline Association (ERA).
On October 1, Highland Air, A. B. is combined with Air Express I Norrkoping, A. B. and Airborne of Sweden, A. B. to form Hultsfred-based Skyways Regional, A. B. The flagship airline, Skyways, is now renamed Skyways Express, A. B. The change has been initiated by Skyway Holdings to gain a more distinct identity in its markets. Skyways Express moves its offices to Arlanda Airport at Stockholm, while Skyway Regional’s headquarters are located in the former Highland Air suites in Hultsfred.
Skyways Enterprise, A. B. continues to operate as a wholly owned subsidiary, concentrating on feeder traffic from Stockholm’s Bromma Airport. Although planning continues, delivery of a group application for a listing on the Stockholm Stock Exchange is delayed.
The Skyways Group fleet at year’s end includes 14 J-32s, 2 Dornier 228s, 4 ERJ-145s, 15 Fokker 50s, and 14 SAABs.
SKYWAYS INTERNATIONAL, LTD.: United Kingdom (19711972) . When Skyways Coach-Air, Ltd. is unable to obtain another loan installment in the winter of 1970, the carrier is forced to cease trading on January 20, 1971. Backed by Sterling Securities, a group of investors led by the outgoing Commercial Manager John Knox, purchases the passenger portion of the defunct airline and four Hawker Siddeley HS 748s late in the month, renaming it Skyways International, Ltd. Scheduled operations resume on February 8 from Ashford to Beauvais.
In February 1972, Dan-Air/Dan-Air Services, Ltd. enters into negotiations for the purchase of the carrier, successfully completing a ?650,000 deal on April 12. Skyways International is briefly known as Dan-Air Skyways, Ltd., but is quickly thereafter integrated.
SKYWAYS OF OCALA: United States (1981-1983). Bearing the name of its base city, Skyways is established in 1981 to provide feeder services as part of the Air Florida commuter network. Operations are undertaken with 3 Beech 99s linking Ocala with Fort Lauderdale, Orlando, Pensacola, Tallahassee, and West Palm Beach.
In 1983, the third-level operator is renamed Skyway Commuter.
SKYWAYS OF SCANDINAVIA, A. B.: Sweden (1986-1988). Late in 1986, AMA Flyg Norwing, A. B. is reformed and renamed. Scheduled commuter services continue to be operated linking Stockholm’s Arlanda Airport with Gavle and Mora. Managing Director Alf Olsson’s fleet comprises only 2 Fairchild Metro Ills.
Malmo service begins and another Metro III is acquired in 1987. In 1988, the company is purchased by rival Salair, A. B. and merged.
SKYWEST AIRLINES: 444 South River Road, St. George, Utah 84790, United States; Phone (801) 634-3000; Fax (801) 634-3305; Http://www. skywest. com; Code OO; Year Founded 1972. For
$100,000, J. Ralph Atkin purchases Dixie Airlines, based at St. George, Utah, on March 27, 1972 and renames the FBO/charter operation Sky West Aviation (later SkyWest, Inc.).
Employing a single Piper PA-34 Seneca piloted by Earl B. Snow (later Chief Pilot Snow), an air transport division launches thrice-weekly scheduled service over a St. George-Cedar City-Richfield-Salt Lake City route on June 22. During the next 6 months, a total of 256 passengers are transported.
The small Utah intrastate grows and in the first quarter of 1973 leases the first of five Piper PA-31-350 Navajo Chieftains; a second arrives in December.
The last three Chieftains arrive by April 1974. In May, the route network is stretched from St. George to Las Vegas and to Moab, Bullfrog, and Page, Arizona. Unhappily, this expansion proves very expensive. In August, now deeply in debt, Ralph Atkin turns to his 26-year-old son Jerry, a new CPA, for assistance, appointing him financial director.
The Moab destination is immediately closed and two Chieftains are sold. Creditors are convinced to give the company more time to meet its financial obligations.
Although a total of 11,887 passengers are flown on the year, there is a loss.
Raising $150,000 in fresh capital in October 1975 alone, Jerry Atkin is able to effect a fiscal rescue and is named president/CEO.
Enplanements for the year total 15,072.
The fleet in 1976 includes 3 Piper PA-31-350 Navajo Chieftains. Supported by Hughes Airwest, SkyWest during the summer is able to win certification from the CAB.
Passenger boardings increase by 5% to 15,781. Freight traffic skyrockets 53% to 101,558 pounds. Revenues for the year total $931,489 and allow a $17,097 profit, the company’s first.
In 1977, routes are operated with a fleet that has been increased to also include 10 Cessna 207As, acquired as part of the purchase of the Page-based FBO Lake Powell Air Service. These LPAS Cessnas fly charters on behalf of rafters traveling down the Colorado River.
Hughes Airwest retires entirely from a number of routes on August 1, the day SkyWest’s certification takes effect. The commuter is able to replace Hughes and inaugurate services linking Cedar City and Page with Las Vegas and Salt Lake City. Following receipt of an airmail contract, a fourth Navajo Chieftain is acquired and a fifth is ordered.
Enplanements for the year total 16,034 and on income of $775,000, a net $50,000 profit is reported.
Airline employment is increased by 50% in 1978 to 75. During this year of the Airline Deregulation Act, plans are laid for expansion and orders are placed for three Swearingen Metro IIs. A fifth Chieftain is received for the company’s route network, along with Essential Air Service (EAS) subsidies that begin in the fall.
Passenger boardings jump 45.8% to 29,583 and among the bookings are the 100,000th (cumulative) passenger. Sky West’s revenues shoot up 41.9% to $1.1 million, allowing a 20% boost in net profits ($120,900).
The number of employees shoots up by 53.9% in 1979 to 100.
A new half-million dollar headquarters and maintenance facility is occupied at the St. George base. Replacing service previously offered by Frontier Airlines (1), new Chieftain routes are pushed to Phoenix from Flagstaff, Page, St. George, and Cedar City, while, on July 1 the first of three ordered Fairchild-Swearingen Metro IIs are placed on line.
As a result of the new services, passenger boardings rise 41.3% to 41,813. Revenues skyrocket 62.2% to $1.95 million, but expenses associated with expansion cause an $82,000 net loss.
The employee population rises 28.8% in 1980 to 130 and the 2 Metro IIs join the fleet in the early spring. SkyWest replaces the Western Airlines service between Salt Lake City and Pocatello in April and simultaneously opens service from Flagstaff to Las Vegas.
Traffic increases by 64.7% as 68,657 passengers are carried. On the financial side, revenues advance by 57.9% to $6 million, but expenses jump 59.7% to $6.2 million, leaving a $200,000 operating loss.
Twenty new employees are hired in 1981 and orders are placed for a Metro III. Employing the Republic Airlines ESCORT system, reservations are computerized at the St. George headquarters.
A Cessna TU-206 collides over Fort Collins, Colorado, on April 17 with an Air U. S. Handley Page HP-137; there are no survivors.
Despite the PATCO air traffic controllers’ strike, the number of passengers transported rises 13.9% to 78,234. Revenues push ahead by 16.1% to $6.5 million, while expenses accelerate 16.4% to $6.4 million, giving the carrier a $32,610 net profit.
SkyWest officials enjoy a particularly satisfying year in 1982. Airline employment is increased 25% to 200 as services are started to Rock Springs, Wyoming and Vernal, Utah, replacing those previously offered by Frontier Airlines (1).
To handle the increased load this good fortune is bringing, five more Metroliners are acquired, including two previously operated by Rio Airways. The EAS routes to Elko and Ely, Nevada, are taken over from United Airlines. The company now begins to keep track of its freight carriage, planning to expand in that area in the future. Most of its cargo consists of mail, express packages, and bank documents.
Enplanements leap 52.6% to 119,394 and a total of 1.23 million pounds of freight is transported. Operating revenues balloon 68.4% to $9.68 million and although expenses rise 56.1% to $9.05 million, the carrier is able to publish a record net profit of $403,688, atop an operating gain of $825,000.
The workforce swells 20.5% in 1983 to 229 and 2 Fairchild-Swearingen Metro IIIs join the fleet. Taking advantage of the withdrawal of Republic Airlines, the company, during the first quarter, inaugurates flights to Twin Falls, Idaho.
Passenger boardings move ahead by 36.7% to 163,960 and revenues ascend 41.2% to $14.9 million. Expenses are kept in line and allow an operating profit of $1.62 million. A second net profit record ($1.1 million) is established.
Profitable throughout most of its history and particularly of late, the 590-employee SkyWest determines to expand again in 1984. Services are inaugurated to Pocatello and Idaho Falls, Idaho, and in addition, flights begin from Reno to Salt Lake City via Elko and Ely and from Salt Lake City to Grand Junction, Colorado. On August 1, frequencies are initiated between Las Vegas and Palm Springs, California.
The company’s size is doubled overnight when the Palm Springs-based commuter airline Sun Aire Lines, together with its fleet of 12 Metro IIs, is purchased from the DiGiorgio Corporation on September 28 for $7.9 million ($7 million of which is borrowed money). Also absorbed is a Los Angeles hub, with spokes out to San Diego, Santa Barbara, Burbank, Ontario, Imperial Valley, and Phoenix.
With a combined total of 653,716 passengers booked (up 31.6% over the number carried separately the year before), the newly merged company ends the year as the 10th largest U. S. regional, providing service to 27 cities in Colorado, Arizona, Nevada, Utah, Wyoming, Idaho, and California. Revenues are $32.41 million and allow profits of $3.41 million (operating) and $1.89 million (net).
The fleet in 1985 comprises 18 Fairchild-Swearingen Metro IIs and 12 Metro IIIs; orders are placed for 6 Embraer EMB-120 Brasilias. Late in the year, the St. George, Utah-based large regional enters into a code-sharing arrangement with Western Airlines effective the following spring.
A total of 691,236 passengers are flown on the year and revenues reach $48.98 million. With costs held to $44.24 million, the operating profit is $4.74 million and net gain is $2.47 million.
Airline employment rises 33.1% in 1986 to 821 and the fleet includes 15 Metro IIs. Aircraft are repainted in modified Western colors and “SkyWest Western Express” services begin to feed the major’s principal hubs on April 1. Later in the month, a continuous maintenance program is implemented following inspection fines levied by the FAA. SkyWest goes public on June 26, makes its first public stock offering and employs the $11.3 million in proceeds to order six Embraer EMB-120 Brasilias. Meanwhile, flights begin to seven new markets.
A week before Christmas, a Metroliner executing a missed approach at Salt Lake City strikes a 45-ft.-tall instrument landing system tower, tearing away the left main landing gear; unaware of the gear loss, the crew diverts to Pocatello, where a safe landing is performed. On a more positive note, the first Brasilia is delivered on December 24.
Enplanements rise 9.7% to 760,045 and revenues ascend 7.9% to $52.95 million. Expenses jump 10.5% to $49.05 million, but allow a $3.89-million operating profit. Net gain climbs to $3.14 million, a company record.
The payroll is increased by 6.6% in 1987 to 875. On January 15, Flight 1834 is on final approach to Runway 34 at Salt Lake City following service from Pocatello. The Metroliner, carrying two crew and six passengers, collides in midair with a private Mooney 20 carrying two passengers, which has flown directly into the path of the Swearingen at 7,000 ft. over Kearns; both aircraft crash and there are no survivors.
The fleet is increased during the year by the addition of five Brasilias, the first two of which enter service over the Palm Springs-Los Angeles-San Diego route on February 1.
In addition, the large regional also flies 25 Fairchild Metro IIIs and 13 Metro IIs. On April 1, Western Airlines, which has been purchased by Delta Air Lines, is absorbed into the Atlanta-based major. SkyWest now transfers its allegiance, becoming a “Delta Connection” carrier.
Nonstop EMB-120 service is inaugurated in July from Fresno to San Diego and Los Angeles. Nonstop frequencies are introduced in October from Twin Falls, Idaho, to Salt Lake City. During the remainder of the fall, service is reduced on a number of California routes with flights to Oxnard discontinued in early December.
A Metro III is forced to land on its belly at Yuma, Arizona, on December 20 after its landing gear jams; no injuries are reported.
Passenger boardings increase by 22.3% to 917,912, but freight falls 4.9% to 1.38 million pounds. Revenues rise 20.8% to $50.8 million, but growth costs are higher. As a result, losses are suffered: $2.46 million (operating) and $1.45 million (net).
The workforce grows by 25.7% in 1988 to 1,100 and the fleet receives 7 new Fairchild Metro IIIs to replace some of its older Metro IIs. A new $2.5-million, 56,000-sq.-ft. maintenance base is opened at Palm Springs, California, on January 1, with daily Brasilia frequencies introduced that day from Salt Lake City to Palm Springs. At this point, the company receives the 1987 “Regional Airline of the Year” award from Air Transport World magazine.
In late January, SkyWest sells 20% shareholding to Delta Air Lines for $6 million. Significant capacity (two EMB-120s) is shifted from California to Delta’s Salt Lake City hub in February and daily service is begun from there in March to Bozeman, Butte, Billings, Helena, and Missoula, Montana and Boise, Idaho. The route network grows to include 44 cities in 8 Western states, although only four stops (Cedar City, Ely, Page, and West Yellowstone) remain subsidized.
Customer bookings dip by 1.2% to 906,833, but cargo climbs 2% to 1.6 million pounds. Revenues ascend 23.1% to $62.47 million, expenses are up 8% to $57.5 million, and the operating profit is $4.97 million. Net gain totals $2.87 million.
Airline employment grows another 9.1% in 1989 to 1,00 and President Jerry Atkin’s fleet now includes 36 Metros and 6 Brasilias. In March, the company joins the Canadair Regional Jet program, even before the jetliner program’s official launch, by signing a memorandum of understanding for the purchase of 10 CRJs.
A new subsidiary, Aviation Services West, is created to provide charter and tour flights in Utah and Arizona, with special emphasis on the Grand Canyon. It launches revenue flights in the spring with a de Hav-illand Canada DHC-6-300 Vistaliner; its traffic figures will for years be reported with those of its parent.
Indeed, SkyWest’s passenger boardings now surpass the million-mark in annual boardings for the first time (1,000,865) as a 10.4% boost in ridership is noted. Freight, on the other hand, declines 8.2% to 1,474,000 pounds. Revenues advance 16.3% to $72.69 million, expenses jump 19.2% to $68.55 million, and operating income dips to $4.13 million. Net profit, however, improves to $3.24 million.
The payroll is increased by 14.8% in 1990 to 1,286 as 4 Brasilias and 1 Metro are reinstated.
While on initial approach to Salt Lake City on January 15, a Metro III with 2 crew and 14 passengers strikes the ground near Elko in the zero visibility of a snowstorm; fortunately, there are no fatalities.
Also in January, daily nonstops are inaugurated from Los Angeles to San Jose, Telluride, Palmdale, and Inyokern.
New services are introduced in June from Salt Lake City to Sun Valley, Great Falls, and West Yellowstone.
Enplanements climb 9.5% to 1,096,381 and revenues are ahead by 20.3% to $113.6 million. Expenses grow 19.4% to $106.4 million and allow an operating profit of $6.08 million. Net gain reaches $4.55 million.
Company employment is increased by 2.7% in 1991 to 1,441 and 2 more Metros are obtained. On February 1, USAir Flight 1493, a B-737-3B7 with 90 aboard, lands atop the company’s Flight 5569, a Metro III with 12 aboard, preparing to takeoff from Los Angeles (LAX) in clear weather. The jetliner bursts into flames and 34 aboard are killed, while all 12 on the smashed commuter plane perish. In terms of frequency, SkyWest is now the leading carrier operating out of Los Angeles (LAX). Meanwhile, ski season service begins to Telluride and Sun Valley and a new maintenance hangar is completed at Salt Lake City.
Bookings jump 8.5% to 1,264,718 and cargo rises 9.3% to 276,000 FTKs. After deducting expenses of $104.62 million from total income of $108.11 million, the operating profit declines to $3.49 million. Net profit is cut to $1.83 million.
The payroll grows a slight 0.5% in 1992 to 1,465 as 10 more Brasilias are placed into service. In February, ground is broken on a new $3.6-million, 63,000-sq.-ft. corporate headquarters building at St. George. A special cash dividend of 2% per common share is declared in September for shareholders of record.
Passenger boardings incline upward 18% to 1,492,336 and freight climbs 21.3% to 318,000 FTKs. Despite stiff fare competition, revenues increase 10.6% to $125.3 million and expenses are held lower. The operating profit is $3.8 million and net gain totals $1.99 million.
Airline employment is increased by 12.5% in 1993 to 1,800 and the fleet reaches 32 Fairchilds and 19 Embraer 120s. In the spring, just as it is occupying its new headquarters, Aviation Services West purchases control of the Grand Canyon flight-seeing operations of pioneer operator Scenic Airlines. In May, a $300-million order is placed for 20 EMB-120 Brasilias, with options on 20 more.
Destinations visited from hubs at Salt Lake City, Los Angeles, Las Vegas, and Phoenix include Bakersfield, Billings, Boise, Bozeman, Burbank, Butte, Cedar City, Elko, Ely, Flagstaff, Fresno, Grand Junction, Helena, Idaho Falls, Imperial/El Centro, Inyokern, Jackson, Las Vegas,
Los Angeles Orange County, Monterey, Ontario/San Bernadino, Page, Palm Springs, Palmdale/Lancaster, Phoenix, Pocatello, Reno, Sacramento, St. George, Salt Lake City, San Diego, San Jose, San Luis Obispo, Santa Barbara, Santa Maria, Sun Valley, Telluride, Twin Falls, Vernal, West Yellowstone, and Yuma.
In July, a $170-million order is confirmed with Bombardier Regional Aircraft Division for 10 Canadair CRJ-100s, with options on 10 more also approved.
Customer bookings accelerate 9.4% to 1,632,425 and cargo climbs 28.5% to 2,897,296 pounds or 408,000 FTKs. Revenues swell 17.2% to $146.8 million while expenses grow only 11.4% to $135.33 million. As a result, operating income is boosted to $11.46 million and net gain increases sixfold to $6.7 million.
Airline employment is increased 13% in 1994 to 2,101. The first Canadair CRJ-100 Regional Jet is delivered in January and begins to operate service on February 15 from Palm Springs to Salt Lake City. On March 1, the “Delta Connection” partner begins to replace its major colleague in several markets. This day, thrice-daily nonstop roundtrips are launched from Salt Lake City to Boise. Additionally in early March, Canadair CRJ Regional Jet service begins to several Western cities, including Butte, Montana and Casper, Wyoming.
Daily nonstop roundtrips are initiated from the Utah capital on April 3 to Burbank, Glendale, Pasadena, Casper, Rapid City, Sioux Falls. Service from Salt Lake City to Butte, Montana, is expanded to thrice-daily nonstop roundtrips. The first of the new Brasilia order arrives in May. Four CRJ-100s are in service by midyear, with a fifth arriving before year’s end.
Passenger boardings accelerate 13.6% to 1,730,993 and freight climbs 30.4% to 435,000 FTKs. Revenues leap up 28.1% to $187.99 million while expenses move ahead by 20.7% to $163.31 million. The pretax profit is up to $21.02 million, while net gain doubles to $13.64 million.
The workforce is reduced by 23.8% in 1995 to 1,600 as 5 more Canadairs join the fleet. On January 10, the company moves its operations at Salt Lake City International Airport from the end of Concourse B in Terminal 1 to the new Concourse E in Terminal 2. The new 23,500-sq.-ft. facility triples the airline’s gates from 5 to 15 and reduces by half the time it takes to walk to Concourse D, where most connecting Delta Air Lines flights depart.
In early March, the company lowers its Salt Lake City fares by $60 to $80 to boost local reservations. A daily afternoon flight from Eugene, Oregon, to Salt Lake City begins on April 1.
When Delta Air Lines makes a large reduction in daily jetliner departures from Los Angeles (LAX) on May 1, SkyWest is called upon to increase its Los Angeles (LAX) daily departures from 106 to 115 by summer. The same day, the company replaces its last Metroliners and introduces into service four Canadair CRJ-100ERs and four Embraer EMB-120 Brasilias.
Daily “Delta Connection” roundtrips commence on December 1 between Colorado Springs and Salt Lake City.
The year is memorable for the fierce fare wars waged in the company’s California market, contests SkyWest does not always win.
Still, enplanements accelerate 6.5% to 2,198,377 and revenues rise 7.2% to $188.54 million. Costs climb 15.5% to $178.85 million and these leave smaller profit lines. Operating gain drops to $9.69 million and a net $6.51-million profit is recorded. Both figures are later adjusted downward to $5.71 million and $4.36 million, respectively.
The employee population is increased by 49% in 1996 to 2,384 and the fleet now includes 50 Brasilias and 10 Canadair CRJ-100s.
On January 1, the third and fourth of seven daily roundtrips from Bakersfield to Los Angeles is upgraded to EMB-120s. Brasilias are simultaneously employed to upgrade the second of three daily nonstop roundtrips between Bakersfield and Sacramento.
On May 1, a fourth daily “Delta Connection” roundtrip service is inaugurated between Eugene, Oregon, and Salt Lake City; it will be maintained through September 30.
Without giving up its Delta Air Lines affiliation, SkyWest now also signs a code-sharing agreement with Continental Airlines, agreeing to provide “Continental Connection” service at Los Angeles.
During his approach to Los Angeles on November 29 following a flight from Bakersfield, the captain of Flight 5410, an EMB-120 with 2 crew and 16 passengers, sustains an eye injury when he is illuminated by what is believed to be a laser. A safe landing is made by the copilot and no other injuries are reported.
Customer bookings accelerate 17.6% to 2,592,245 and operating income jumps 12.5% to $283.3 million. Expenses are $267.89 million and a $15.41-million operating gain is generated. A net $10.11-million profit is also reported.
The workforce grows another 4.5% in 1997 to 2,300. When United Airlines early in the year elects to transfer code-sharing on eight routes out of Los Angeles to SkyWest, United Express (Mesa Air Group) files suit. Although Mesa will continue to seek “commercial resolution” of the move, UAL will eventually provide it with seven new California routes as compensation.
While climbing away from San Diego on a May 21 service to Los Angeles, “Delta Connection” Flight 724, an EMB-120ER with 3 crew and 14 passengers, loses power to its No. 2 engine because of fire. Once the fire is extinguished, the turboprop suffers a hydraulic system failure, necessitating a distress call. The plane is diverted to Miramar NAS, where a successful engine-out landing on a long, foamed runway is accomplished without flaps, brakes, or steering. The Embraer overruns the runway by 1,300 feet, coming to a stop into a grassy area. No injuries are reported.
In late June, Transport Canada issues an emergency airworthiness directive after a 14-inch crack is found in the bulkhead frame of a company CRJ-100ER, just before the wing. Having landed without incident, the aircraft’s pilot had reported difficulty in maintaining full cabin pressure at altitude. Inspections in July will reveal cracks in 7 of the carrier’s 10 Canadairs (cracks will also be found on 30 other jetliners worldwide). The manufacturer, Bombardier, makes field repairs that require 100 man-hours of work and cost C$6,000 per plane.
Also during the summer, negotiations continue with United Airlines concerning the regional’s assumption of additional markets. On July 22, a “United Express” pact is signed between the two that will take effect in October.
On October 1, the company, together with United Express (Mesa Air Group), increases services from the Los Angeles hub by 73% to 175 daily flights; a significant portion of this growth is in 4 markets served to and from Los Angeles 9LAX): Santa Barbara, Monterey, Palm Springs, and San Diego.
At the same time, a large number of new California destinations are now visited 29-times-per-day, including Carlsbad, Fresno, Imperial, Monterey, Orange County, Palm Springs, Santa Barbara, Visalia, and Utah. New services added include San Diego, San Jose, and St. George,
Point-to-point routes include Fresno and Burbank, Las Vegas and Fresno, Las Vegas and Palm Springs, Las Vegas and Santa Barbara, Palm Springs and Phoenix, San Diego and Burbank, San Diego and Santa Barbara, and Santa Barbara and San Jose.
Simultaneously, the carrier’s marketing agreement with Delta Air Lines is reaffirmed when the commuter signs an updated “Delta Connection” contract. SkyWest will provide feed for Delta at both Los Angeles and Salt Lake City. Under this pact, the company will continue serve longer segments with the 10 Canadair CRJ-100ERs based at Salt Lake City.
Given the need for additional “United Express” capacity, it will no longer provide “Delta Connection” service from Las Vegas. Consequently, twice-daily roundtrips between St. George, Utah, and Las Vegas are discontinued, as is a daily roundtrip to the gambling capital from Bakersfield.
In mid-November, pilots at United Airlines vote to allow “United Express” partners to operate regional jets in UE colors. Meanwhile, as a “Delta Connection” affiliate, SkyWest continues to offer 39 daily nonstop flights from Los Angeles to Bakersfield, Fresno, Monterey, Palm
Springs, San Diego, and Santa Barbara. In addition, SkyWest operates 95 daily nonstop “Delta Connection” flights from Salt Lake City to 27 destinations.
For the year, passenger boardings accelerate 12.3% to 2,989,062.
Operating revenues advance 6.8% to $297.09 million, while expenses inch up 0.2% to $263.14 million. The operating gain more than doubles, rising to $33.95 million. The net profit also doubles and then some, hitting $21.94 million.
United Airlines announces in January 1998 that it has cancelled, effective May 30, its “United Express” arrangement with Mesa Air Group. This development rebounds to the benefit of SkyWest, which is named UAL’s new code-sharing partner on February 10 and as a result, watches its stock shoot up 176% over the same period a year earlier, to 38 1/2.
During the last week of February, a $51-million order is placed for 10 new EMB-120 Brasilias, with 40 options also taken. These will be delivered by October 1 and employed from the new hub at San Francisco. Arrangements also include the acquisition of 10 more EMB-120s from Great Lakes Aviation.
Brasilia deliveries begin in early March. On March 12, while riding his motorcycle some 40-mi. NE of San Diego, Chairman/CEO Atkin collides with an automobile. Suffering a broken left arm and leg, plus secondary internal injuries, Atkin is taken to a hospital at Escondido. Executive Vice President/Chief Operating Officer Ronald B. Reber takes over management of the airline temporarily.
The Los Angeles hub is expanded on April 23 when EMB-120 “United Express” flights commence to and from Bakersfield, Carlsbad, Fresno, Inyokern, Orange County, Oxnard, and Visalia. The added flights bring to over 600 the number of feeder services SkyWest flies daily on behalf of United Airlines.
It also offers 104 daily “Delta Connection” departures from Salt Lake City feeding the 176 daily Delta Air Lines flights from that Utah hub, the major’s third largest. In total, SkyWest offers 300 daily “Delta Connection” departures to 40 cities in 12 Western states plus Canada.
SkyWest initiates 54 new roundtrip United Express services from Portland and Seattle the same day. Twelve daily roundtrip frequencies are undertaken from Seattle to Portland, Oregon, seven to Bellingham, six to Pasco and Yakima, and two to Eugene. From Portland, six to Eugene and Richmond/Bend, five to Medford, and two to Pasco and Redding.
On June 1, the company establishes a new West Coast hub at San Francisco from which to operate daily “United Express” EMB-120 services to 12 West Coast domestic destinations. Sixteen daily roundtrip frequencies from San Francisco are undertaken to Fresno and Sacramento, ten to Eureka/Arcata, eight to Redding, six to Chico, five to Bakersfield, Monterey, and San Luis Obispo, four to Modesto and Santa Rosa, three to Merced, and two to Santa Barbara. Seventeen new EMB-120s have are being obtained with which to support the growth.
In order to concentrate on its core business of providing regional airline service, SkyWest, on August 27, sells most of the assets of its Scenic Airlines subsidiary to Eagle Canyon Airlines. In making the announcement, Executive Vice President Bradford R. Rich notes that the Page, Arizona-based tour division will be retained.
“United Express” EMB-120 roundtrips between Seattle and Vancouver begin on October 25, six times a day.
After lengthy discussions, SkyWest and Delta Air Lines announce on December 11 that they will end the Los Angeles portion of their codesharing agreement on April 4.
During the 12 months, customer bookings increase 52.5% to 4,422,328. Revenues jump 46% to $388.62 million, while expenses are held to $324.32 million. The operating profit doubles to $64.3 million, while net gain climbs to $41.83 million.
By the beginning of 1999, the workforce has been increased by 43.5% to 3,300.
A firm order is placed on January 22 with Bombardier, Inc. for 25 Canadair CRJ-200LRs, with options taken on 25 more. The request is valued at approximately $560 million. Deliveries will commence in July 2000 and continue for two years.
A malfunctioning propeller forces an EMB-120 to make an emergency landing at Los Angeles (LAX) on February 9. There are no injuries and all passengers are put aboard another aircraft to continue their journey.
With lease financing arrangement by Newcourt Capital, SkyWest is able, on February 24, to place a $560-million order with Bombardier Aerospace for 50 CRJs.
The company’s schedule is significantly increased when the summer schedule begins on April 4.
New “United Express” EMB-120 return service is initiated from Seattle to Spokane, six times a day. In addition, a seventh daily EMB-120 “United Express” roundtrip is laid on from Seattle to Yakima. Thrice-daily “United Express” EMB-120 return service is introduced from Portland to Eureka/Arcata, California. “United Express” service from Portland to Medford is increased to seven daily roundtrips.
Simultaneously, the Los Angeles operation is further expanded. For the first time since 1991, the company flies EMB-120 service between Los Angeles (LAX) and Santa Rosa, offering four-times-a-day “United Express” return service. Thrice-daily “United Express” Brasilia return flights also commence between Los Angeles (LAX) and Merced.
In addition, the number of daily EMB-120 “United Express” flights from Los Angeles (LAX) to Fresno is increased from 12 to 15 daily roundtrips. From Los Angeles (LAX) to Monterey from 13 to 15; from (Los Angeles) LAX to Palm Springs from 19 to 20; and from (Los Angeles) LAX to Santa Barbara from 14 to 15.
Electronic ticketing is introduced, beginning on April 26. Four days later, a follow-on order is placed with Bombardier Aerospace for 10 additional CRJ-200LRs. The $230-million transaction brings Sky-West’s firm CRJ order to 45 aircraft, 10 of which have so far been delivered. The carrier also has 35 CRJ options for a total of 80 firm and optioned aircraft.
Passenger boardings swell 23.2% to 5,447,000. Revenues jump 22.2% to $474.77 million, while expenses are up 19.7% to $388.09 million. The operating profit grows to $86.68 million, while net gain reaches $57.14 million.
Airline employment at the beginning of 2000 stands at 3,600, a huge 88% increase over the previous 12 months. The United Express operator offers a thousand daily departures to 63 cities in 13 Western states and Canada.
On April 2, the daily EMB-120 “United Express” return service from Salt Lake City to Twin Falls is increased from five roundtrips to six.
United Airlines and its “United Express” regional partners exchange several routes on June 8. Employing Embraer EMB-120s, SkyWest replaces United’s 11 daily roundtrips between Monterey and San Francisco.
Skywest is named best-managed company among nonstate-owned regional-sized airlines in the “2000 Index of Competitiveness” published by Aviation Week and Space Technology on July 10.
On August 25, $117 million is raised in a secondary public offering of 2.6 million shares of common stock at $44.50 per share on the Nasdaq exchange. The issue represents 9.5% of the airline’s stock, of which the total is now 26.35 million shares, and boosts the company’s capitalization to $1.2 billion. Underwriters Raymon James & Associates have an option to purchase an additional 400,000 shares to cover overallotments. The nation’s fourth largest regional airline will invest in some 40 new regional jets (provided it can secure scope clause concessions via United Airline’s tentative labor contract signed the next day with ALPA), spare parts, and support equipment.
Twice-daily CRJ200ER “United Express” return service is initiated on October 1 from Denver to Fresno. On November 1, thrice-daily CRJ200ER “United Express” roundtrips begin from Denver to Bozeman, Montana. The twice-daily EMB-120 “United Express” service from San Jose to Santa Barbara is doubled to four roundtrips on November 13.
Daily roundtrip CRJ200ER “United Express” frequencies are initiated on December 1 from Salt Lake City to both Minneapolis (MSP) and Phoenix. The same day, the number of daily CRJ200ER “United Express” return flights between Salt Lake City and Albuquerque is boosted from two to three.
As the year ends, plans are well advanced for the initiation of new twice-daily CRJ200ER roundtrips on January 31 from Salt Lake City to Sacramento.
Customer bookings during these 12 months inch up 2.8% to 5,598,499.
SKYWEST AIRLINES (PTY.), LTD.: Perth Domestic Airport, Perth, Western Australia, 6105, Australia; Phone 61 (9) 478-9999; Fax 61 (9) 478-9928; Code YT; Year Founded 1967. Begun at Wit-tenoom, Western Australia, in 1964 as the FBO Skywest Aviation (Pty.), Ltd., the company sets up a charter operation in 1967 initially known as Pilbarra Air Services (Pty.), Ltd. In 1972, the company is relocated to Perth Airport at Redcliffe and renamed Skywest Airlines (Pty.), Ltd. Skywest wins a government contract in 1978 to provide Coastwatch services on behalf of the Customs Service. As the decade ends, the carrier is operating not only this duty, but some scheduled service and charter flights on behalf of area oil and mining companies.
In 1980, Stillwell Airlines, Ltd., the largest commuter operator in the region, is purchased and merged.
While on final approach to Esperance on May 13, a Swearingen SA.226TC Metro with a pilot and 11 passengers, loses power in its right engine. A forced landing is made onto an adjacent field, where the landing gear collapses and the plane catches fire. All aboard are safely evacuated before the turboprop is consumed in the flames.
Airline employment in 1981 is 85 and the fleet comprises 1 Grumman Gulfstream I, 2 Cessna Citation IIs, 3 Beech Super King Air 200s, 2 Em-braer EMB-110s, 1 Swearingen Metro II, 1 Mitsubishi MU-2N, and 2 GAF Nomad N-24As. The regional network links Perth with Albany, Bunbury, Esperance, Meekatharra, Mount Magnet, Telfer, Wiluna, Yeeleerie, and Rottnest Island.
Transwest Airlines (Pty.), Ltd. is taken over in January 1982 and two more companies are taken over in 1983: H. C. Sleigh Airlines, (Pty.) Ltd. in July and Tamworth-based East-West Airlines (Pty.), Ltd.
In December. East-West, which has grown to become the nation’s largest regional airline, is allowed to maintain its separate identity. Additional destinations now added include Geraldton, Kalgoorlie, Laverton, Leinster, Leonora, Marble Bar, Newman, Norseman, and Nullagine.
In 1984, rights are obtained to fly the trunk routes out of Perth to Kar-ratha and Port Hedland. Three BAe Jetstream 31s, 1 Super King Air 200,
1 Cessna Citation II, 3 Britten-Norman BN-2 Islanders, 1 Cessna 402, 5 Cessna 310s, and 10 Aero Commander 500s are added as the Metro II, MU-2N, and 1 GAF Nomad N - 24A are deleted. Orders are placed for
2 additional Jetstream 31s.
Following the conclusion of commercial operations by Sri Lanka’s Upali Aviation, Ltd., a de Havilland Canada DHC-6-300 Twin Otter is purchased from that operation in early 1985. Managing Director Bill Meeke’s fleet is rationalized in 1987 around four Jetstream 31s and four Cessna 310s. However, in 1988, it is expanded again by the addition of two more DHC-6-300 Twin Otters and three GAF Nomad N-22Bs. During the following year, 1989, the decision is taken to rationalize the fleet.
In 1990, Robert E. “Bob” Mason is named general manager. The Twin Otters and Nomads are withdrawn. Services are maintained from Perth and Port Hedland to the ports of West Australia. The fleet in 1991 includes 1 leased DHC-8-102, 2 Cessna 402Cs, 5 Cessna 310s, and 4 British Aerospace BAe Jetstream 31s.
Enplanements total 77,274.
In 1992, the Cessna 310s are retired in favor of two more 402Cs. Passenger boardings inch downward 1.2% to 76,897. Operations continue in 1993 as an order is placed in December for a SAAB 340B and en-planements reach 72,900.
Skywest is sold into the Ansett Australia (Pty.), Ltd. feeder system in 1994. The SAAB order is cancelled as the carrier is provided with the first of three Fokker 50s. The new turboprop is employed on services from Perth, Esperance, and the eastern gold fields region.
Customer bookings accelerate 19% to 90,000.
The second and third Fokker 50s arrive in 1995 and are employed to replace Ansett Australia (Pty.), Ltd. on several routes.
Passenger boardings increase 63.5% to 149,329.
Airline employment stands at 165 in 1996 and the fleet is enhanced by the addition of 3 more Fokker 50s.
Traffic gains are somewhat more modest this year, rising 9% to 236,648 passengers flown.
The workforce is 74 in 1997. When Ansett Australia (Pty.), Ltd. embarks upon a fleet rationalization beginning in May, it turns over its remaining Fokker to SkyWest.
The regional’s passenger boardings jump 12.6% to 267,111.
During the spring, General Manager Robert Mason retires after 22 years service with Skywest and its predecessor. He is succeeded by William “Bill” Jauncey. Along with other Ansett regional airlines, Sky-west adopts a new, “cleaner” look that will progressively include changes in livery, signage, and stationery. The Ansett Starmark will continue to be employed on all aircraft and the Skywest titles will be in the new Ansett typestyle, using Ansett blue typeface. It is anticipated that much of the makeover will be in place before Christmas.
Customer bookings during these 12 months fall 3.2% to 242,000.
The workforce totals 165 at the beginning of 2000. In mid-February, the aviation media reports that Ansett Australia (Pty.), Ltd. is considering a merger of its regional carriers Skywest, Aeropelican Air Services (Pty.), Ltd., and Kendell Airlines (Pty.), Ltd. into a super regional airline; the enlarged Kendell would be led by Ansett executive Ronald Roalky. This move would take the major’s two-year campaign to cut A$55 million ($31 million) in costs across its regional network to a new stage.
SKYWORLD AIRLINES: United States (1985-1990). The airline division of Denver-based Ports of Call, a travel club, changes its name in late 1985. The parent club, however, continues to operate under its Ports of Call moniker. Although traffic figures are not made available, Skyworld officials do report that the carrier’s fleet of 3 B-707-123s and 1 B-727-100 have flown sufficient passengers to generate a $1.6-million profit.
A total of 698.1 million revenue passenger kilometers (RPKs) are flown in 1986; however, expenses rise at such a pace that only a $92,809 profit can be achieved.
The Stratoliner fleet is increased by seven units in 1987. A series of passenger charters are operated on behalf of the uncertified start-up Grand Pacific Airlines between Los Angeles and Pago Pago.
A total of 469,000 passengers are flown over 990 million RPKs, the latter being a 41.8% increase. Revenues climb to $55.6 million and produce an operating profit of $28,000. There is, however, a net loss of $2.64 million.
When, in August 1988, the independent package tour operator Map-tours fails to continue payments to Skyworld for the June-September charter flights for which it contracted between Boston and New York and Terceira and Lisbon, the airline is forced to cancel 22 flights. In addition, under DOT regulations, the charter carrier must operate 18 flights through September 19 and at its own expense ($470,000) to return stranded passengers.
The 410-employee charter operator transports a total of 517,000 passengers, a 6.6% increase. Revenues jump 13.9% to $63.3 million, but expenses accelerate by 21.2% to $67.33 million, leaving an operating loss of $4.02 million. The net loss triples to $6.61 million.
The fleet in 1989 includes 5 B-707-320Bs, 3 B-707-123s, and the single B-727-100. On March 9, Skyworld files a $1.07-million suit against Maptours for breach of contract. Through July, the last month it turns in statistics, the company flies 167,957 passengers. In August, the decision is taken to close down, largely because of the costs associated with maintaining the aging Stratoliners.
Just after New Year’s 1990, Ports of Call travel club is sold for $500,000 to Amtran, Inc., parent of American Trans Air, a much larger competing charter airline. The Skyworld fleet is liquidated.
World History
