How does SkyWest derive its revenue?
SkyWest currently derives its revenue from long-term codes-sharing agreements with major U.S. airlines. We provide flights on a fee-for-departure and or cost/plus basis and charge our partners accordingly. Our partners assume responsibility for setting fares and determining where the aircraft will operate. These agreements provide base margin and incentive margin amounts over and above our costs. These incentive programs are designed to maintain quality in our operation by being awarded higher margin points and amounts based on achieving higher completion of flight and on-time performance numbers and lower mishandled baggage per thousand customer’s numbers.
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