Belle Aire Charter Case Essay

r market by entering into strategic code-sharing agreements with international carriers, such as Cathay Pacific , and American Airlines

1. Which firms are the “identical twins” of the Collinsville investment? Using the β’s for those assets and the methodology learned in this course, determines the appropriate discount rate for the Collinsville investment.

As the new president of the airline, Stephen’s first concern is to create a financially solid company since it is a common presumption for airline industries that maintenance costs rise with the age of aircrafts.

$592000 60.14 % 1.1 Program Manager 520 $250 $130000 1.2 Project Manager 520 $200 $104000 1.3 Team Lead 520 $150 $78000 1.4 Developers 2080 $100 $208000 1.5 Database Administrator 360 $100 $36000 1.6 System Administrator 180 $100 $18000 1.7 Design 180 $100 $18000 2.Hardware $14000 1.4% 2.1 HP Laptops 15 $600 $9000 2.2 MAC Laptops 5 $1000 $5000 3.Software $3550 0.36% 3.1 MS Office licenses 15 $150 $2250 3.2 XCode licenses 5 $100 $500 3.3 Cloud Database 20 $20 $400 3.4 Server 1 $400 $400 4.Testing

The purpose of this memorandum is to address the profitability issues at Continental Airlines and to estimate the costs for 2009 to forecast the future outlook of the company. To address these issues, I used regression analysis to observe what effect the 11% reduction in flying capacity would have on the firm’s future operating costs. I also used the results from the regression analysis to verify the costs that, if reduced, would further comply with the implementation of cost-cutting initiatives and operational efficiencies that the company is striving for. Lastly, I consolidated the data to forecast Continental’s financial outlook for 2009, then provided insight

This paper targets to assess Flight Centre’s strategic situation in 2003, focusing on discovering key issues in pursuing future profitable growth. Furthermore, strategic solutions to their issues will be considered and a refined strategy proposed based on the analysis.

Although the company made strategy through original cost system, it is still unclear why the profit was declining. Might be some problem when the company was allocating the cost on both lines, and the methods to allocate will route a wrong strategy for the company.

8. I would like to remove allocated costs and fixed overheads and see what would be the variable cost. If this is done, you can see that the variable cost hovers around 7 FF. ( Not many of you have done this)

The announcement of an outdated CRJ1000 instead of the highly anticipated CSeries came to a shock to analysts and shareholders. It has now become unclear to investors what Bombardier’s future strategy will be within the aerospace industry.

Because technology has transformed the way many businesses operate, there are now fewer reasons to travel for business when one can effectively facilitate meetings remotely such as using video conferencing. This has reduced the number of diverter travelers so that companies can save or reallocate monies previously set aside for travel. Competitor innovation or pricing changes cause additional uncertainty. From a risk perspective, Piedmont will have to assess the impact if fewer diverters decide to travel at the last minute, which would be the worst-case scenario with fewer discounted fares available. Continual evaluation of the Revenue Enhancement Department’s process for discounted seating allows Marilyn to assess the potential of lost revenue.

No.of employees * 10% of gross sales = Cost of set up & ongoing communication + No. of employees * (Employee Base Salary + 5% of gross sales)

In a company like Bayonne Packaging, Inc., a printer and paper converter, it is very important that performance measures such as cost, quality and delivery are in agreement with the forecasted values since this firm used to compete based on low cost, good

The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the

Under the original costing system used by Dakota Office Products, Customer A is shown to be slightly less profitable than Customer B. From the calculations above, we see that Customer A is slightly profitable at 0.3% profit as a percent of sales, and Customer B is not profitable, at a loss of (7.1%). We observe that Customer A is a consumer of low-cost services and generally pay their bills within 30 days unlike customer B who took 90 days or more. Timely servicing of debt led to profitability of Customer A.

At the end of the 1960’s, Wilhelmsen and Stephan came up with the profitable idea that the wealthy residents of Florida will consider paying top dollar amounts to cruise to the Caribbean Islands as a great alternative for a week or weekend getaway. After proposing this idea to Norwegian entrepreneurs, Royal Caribbean Cruise lines, was born.