SkyWest pledges to buy 100 Mitsubishi jets as it attempts to recover from stinging financial losses

SkyWest has announced at the Farnborough Airshow a fleet replacement plan involving a tentative commitment to order up to 100 Mitsubishi MRJ regional jets. While the order may be seen as a boost for the programme, which has only 70 firm orders, it comes as SkyWest struggles to return to profitability after losing money during 2011 and recording a loss in 1Q2012. As Mitsubishi celebrates securing a high-profile US customer for the MRJ, SkyWest is basing its fleet plans on tenuous scope clause relief to create a small amount of growth in the stagnant US regional market.

Integration challenges created by its acquisition of ExpressJet in 2010 resulted in SkyWest missing its financial results target in each quarter for 2011, which culminated in the company's first annual loss in 23 years. While the carrier shrank its 1Q2012 losses and promises a return to profitability in 2012, the carrier is embarking on a fleet revamp with little visible growth on the horizon for US regional carriers. The market must undergo change if SkyWest is to receive all 100 aircraft - or even a notable amount.