SkyWest - The Journey Ends Here

**nodoodahs** Tue Aug 08, 2006 8:52 pm

SkyWest - The Journey Ends Here
http://nodoodahs.com/individual-stocks/skywest-%e2%80%93-the-journey-ends-here/

**blast_investor** Tue Aug 08, 2006 9:33 pm

Hi Bill,

Many regional airlines have service contracts with big airlines where the big airlines would pick up fuel cost risk.

In other word, if skywest sign similar contract as MESA, MAIR do, there should be no oil price fuel risk for it.

I am not bull on regional airlines. I studied this sector while back and I don't like this sector, not because of oil risk , but its business model. Most regional airlines have very concentrated customer. Sometimes, one big airline is the major customer for service aggreement. If the big boy cancel the contract, the business goes down hell. That customer risk is just too high.