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Sky West’s existence is predicated on being a feeder for its code share partners Delta and United. Their business plan is to serve only as a feeder (in the case of the Northwest) to Delta’s hub in Salt Lake City, Utah, as demonstrated by their schedules from Friedman Airport. They do not have an independent reservation system, rather relying on both Delta’s and United’s reservations systems. The aircraft operated into the Wood River Valley market consist of the Embraer Turbo Prop aircraft. One only needs to walk down the E Concourse in the Salt Lake City Airport to realize their strategy.

Both Horizon and Skywest operate Bombardier CRJ Regional Jets in addition to the Turbo Props, but runway length and altitude (density altitude/performance) restrictions do not allow these aircraft to operate out of Friedman Airport.

In short, both airlines are considered to be non-entities vis-à-vis competition for the contemplated services, as in all likelihood they will not initiate services to additional markets from Friedman Airport.

New entrants may or may not materialize. Currently Great Plains Airlines is considering service. Having been founded to serve the Tulsa market, they enjoy tax relief from the local authorities. This may be placed in jeopardy should they expand service to other markets, unless such service connects their primary market. They currently operate the Dornier Fairchild 328 Jet, one of the few that are capable of operating year round from Friedman Airport, albeit at reduced payload levels during the summer season (density altitude/performance issues).

Big Sky Airlines from Bozeman, Montana has expressed an interest in providing service from Friedman to Boise, Idaho as a feeder/commuter carrier for those airlines serving this airport.

Table 14.

Sky West

1996-2000

Averages

Outbound Passengers

41,122

Outbound Passenger/Revenue

$8,426,000

Fared Average Yield

$0.18

Fared Average Fare

$216.99

Load Factor

Not Disclosed

RASM (Revenue per Available Seat Mile)

$0.29

CSAM (Cost per Available Seat Mile)

$0.19

Annual Outbound Passenger Revenue Growth

6.80%

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