Fortune magazine reported that SkyWest, an independent regional airline, negotiated a financial arrangement with Delta and United
Question:
Fortune suggested that Wall Street liked the deal because SkyWest’s market valuation increased from $143 million to $1.1 billion after it began its service with the two major airlines. Explain carefully how this arrangement with Delta and United could have caused the value of SkyWest to increase dramatically even though it limited the amount of profit SkyWest could earn.
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Even though the financial arrangement with Delta and Un...View the full answer
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Related Book For 
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021718
11th edition
Authors: Christopher Thomas, S. Charles Maurice
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