...How does the national debt affect us as a country? The US national debt is the total outstanding debt amount that our country has borrowed to fund its obligations. The Outstanding Public Debt as of May 24, 2011 is $14,358,571,459,323.88. The estimated population of the United States is 310,623,016 so each citizen's share of this debt is $46,225.07.The National Debt has continued to increase an average of $4.01 billion per day since September 28, 2007! The US national debt is calculated as follows: Add up all of the budget deficits that our country has experienced over the years. Then subtract any budget surpluses that we had. Finally, subtract any additional money that was used specifically to pay down the debt. You end up with a monetary figure that equals our national debt. The US national debt is composed of both “Public” and “Inter-governmental” debt. It is this fact that allowed President Clinton to claim a “budget surplus” for three straight years back in FY1998, FY1999, and FY2000. One must remember what was happening in our economy back then. Those fiscal years were the peak of the “dot com” boom. As such, citizens of our country were making very high salaries in the computer fields, and therefore paying in a lot of money to the Social Security and Unemployment trust funds of the Federal government. The government trust funds are required by federal law to use any funds, not needed for outlay in the current fiscal year, to purchase U.S. Treasury securities (a.k.a...
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...growth in the country recently could hurt the tourism market from China. The customers of Hawaiian are not all identical which makes it critical that the airline’s business is not dependent upon a single or few customers and the loss of any one customer would not have a huge effect on Hawaiian’s business. Cost Structure – The greatest and most important cost for Hawaiian is the cost of airline fuel. Operations are significantly affected by the availability and price of jet fuel. The lower the fuel, the better for the airline as it is more cost effective, however, because of the binding hedging contracts that the company has to protect itself against low fuel prices, costs will not be cut as much as assumed. Recently, the appreciation of the US dollar, and extremely low oil prices (fuel prices) have cut costs for Hawaiian and other airlines nationwide, and in 2014 Hawaiian consumed more gallons of fuel than in 2013 or 2012 and still maintained lower fuel costs in both years. These low fuel costs help the airline create new flight routes with more airliners while still maintaining low fuel costs which helps the airline become more profitable. Rent expense decreased in 2014 as 3 leases of aircrafts ended in 2013, and although the company is adding 6 new planes later in 2019, they are being swapped for 6 current planes so the rent expense will not increase....
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...JetBlue Case Study Analysis JetBlue Airways Corporation Overview JetBlue Airways Corporation is an American low-fare airline, which headquartered in the Long Island City near the New York City. Its main base is John F. Kennedy International Airport. Basically, the airline mainly serves destinations in the United States, as well as many Latin American countries. As of October 2013, JetBlue serves 84 destinations in multiple countries. Low-fare airline is an airline that generally with a lower operating cost structure. In many people’s view, low-are airline also with has low ticket prices and limited services. However, JetBlue is a low-fare airline corporation with a goal of fixing everything that “sucked” about airline travel. Its passengers could get unique flying experience by providing new aircraft, simple and low fare, leather seats, free LiveTV at every seat, preassigned seating, reliable performance, and high-quality customer service. JetBlue Airways Corporation David Neeleman, the starter of JetBlue, had raised funds of $130 million for this brilliant company at the beginning. Even JetBlue has strong support from venture-capital community, it also had the intent to go public in April 2002. At that time, the whole industry was still in recession due to 9/11 attack. A company sells stock shares to the general public for the first time via security exchange, it is Initial public offering (IPO). Before IPO, there is no general shareholders in the company. After IPO,...
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...Impact of web-based Sales on the airline industry | AbstractExpedia, Travelocity, Priceline, and Orbitz: examples of how the travel industry in general, but more importantly the airline industry, has taken a deeper turn towards the low cost affair that consumers have tried to accomplish with that specific industry for many years now. It is a proven fact that the competitive advantage has been taken away from the airlines as consumers have much of the information required at their fingertips on the web at all times.Javier Alfonso FIN6644 - Global Financial Strategy for Professor Krishnan Dandapani | Impact of web-based Sales on the airline industry | AbstractExpedia, Travelocity, Priceline, and Orbitz: examples of how the travel industry in general, but more importantly the airline industry, has taken a deeper turn towards the low cost affair that consumers have tried to accomplish with that specific industry for many years now. It is a proven fact that the competitive advantage has been taken away from the airlines as consumers have much of the information required at their fingertips on the web at all times.Javier Alfonso FIN6644 - Global Financial Strategy for Professor Krishnan Dandapani | Table of Contents Introduction 2 History of AMR 4 Financial Analysis of the Airline Industry 5 History of Expedia 8 Financial Analysis for Expedia, Inc. 9 Comparison of Both Businesses and Their Industries 13 Conclusion 15 Introduction The airline...
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...and subsequent events greatly worsened the crisis, the dire state of this industry pre-dated the 9/11 attacks. The major carriers were losing millions of dollars and facing possible bankruptcy filings because of broken business models that were no longer profitable. In the capitalist system that generally means businesses fold. Bankruptcy as a Weapon Government aid still flows to the airlines, as it did after 9/11. But Wall Street and Washington are pushing the restructuring process. Meanwhile some important facts indicate the depth of the crisis and the challenge facing rank-and-file workers and their unions. Last summer US Airways, the seventh largest carrier, filed for bankruptcy and began slashing jobs, wages and benefits. It emerged from bankruptcy in the spring as a smaller carrier with lower labor costs than most of its competitors, but US Airways is still not out of turbulent skies. "They've basically changed every little thing, and all those little things add up to the employee working more days for less pay," said one flight attendant. United Airlines, the second largest carrier, fired or furloughed more than 30,000 employees since 9/11, 34% of its worldwide total. It filed for bankruptcy protection in December and recently forced through a six-year deal...
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...Capstone: Strategic Management May 13th, 2008 Robert Gibson – Scott McDaniels – Jonah Nelson – David Stark Table of Contents: Strategic Profile 3 * Company Introduction Situational Analysis 4-15 * External * PEST Analysis * Porter’s 5 Forces * Bargaining Power of Suppliers * Bargaining Power of Buyers * Threat of New Entrants * Threat of Substitutes * Competitive Rivalry between Existing Players * Competitor Landscape * Alaska Airlines * Southwest Airlines * United Airlines * Air Canada * Key Success Factors * Internal 16-23 * Resources * Tangible * Intangible * Value Chain Analysis * Primary Activities * Secondary Activities * Capabilities * VRIN Testing * Core Competencies SWOT Analysis 24-25 * Strengths * Weaknesses * Opportunities * Threats Strategy Formulation 26-28 * Strategic Alternatives * Alternative Evaluation * Alternative Choice Strategic Alternative Implementation 29-31 * Action Items * Action Plan References 32 Strategic Profile: Company Introduction Alaska Air Group is made up of two principle subsidiaries Alaska Airlines and...
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...PIEDMONT AIRLINES EMPLOYMENT APPLICATION | | |PERSONAL INFORMATION | |LAST NAME FIRST NAME |ALIAS OR NICKNAME |SOCIAL SECURITY NUMBER | |MIDDLE INITIAL | |224-71-6419 | |Boswell William D | | | |RESIDENT ADDRESS CITY STATE |PRIMARY PHONE |ALTERNATE PHONE | |ZIP CODE | | | | |720-271-6464 | | |9601 Alfaree Road Richmond VA 23237 ...
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...FOM Fachhochschule für Oekonomie & Management Frankfurt University of Applied Sciences Master of Business Administration First Semester Module: Economics Assignment Two: Economics of Alliance Airlines Prof. Dr. Andreas Löhr Author: Boris Olarte Arque Student id: 252547 Frankfurt am Main, 16th July 2010 Table of Contents List of Abbreviations III List of Figures IV 1 Introduction 1 2 Capital Investment 2 2.1. The Airline Market 4 2.2 High Cash Flow 9 3 Liberalization 10 4 Conclusion 11 List of references 14 Internet Sources 14 Further Literature 14 Appendix 15 List of Abbreviations ASM: Available Seat Mile OAG: Official Airline Guide IATA International Air Transportation Association ICAO International Civil Aviation Organization List of Figures Figure 1: Demand Curve….………....…..................................................................3 Figure 2: Supply Curve……………………….………….........................................4 Figure 3: One World airline members ……………………......................................5 Figure 4: SkyTeam airline members ……………………........................................6 Figure 5: Star Alliance Statistics…………………………………………….……..7 Figure 6: Market Share of the Alliances…................................................................8 1 Introduction The airline industry is classified in the third economic sector the same as services because that is what is about. Airlines perform...
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...HEAVY EDIT JetBlue Airlines: Getting “Blue” again?* JetBlue posted a net income $97 million in 2010. The airline continues to pursue its goal of becoming ―the Americas‘ Favorite Airline‖ and aims attainting positive free cash flow and long term sustainable growth while maintaining adequate liquidity position. Financially, the airline was far better than after the Valentine day fiasco in February 2007 and subsequent loss of $84 million in 2008. It focuses on controlling costs, maximizing unit revenues, managing capital expenditures and aims at achieving disciplined growth (see Exhibit 1).1 However, in the recent years, JetBlue appears to be moving away from its core strategy, in quite interesting ways, of being a low-cost player providing the distinctive ―JetBlue experience.‖ In its efforts to boost revenues, the airline began charging $10 to $20 for seats with extra legroom, doubled its ticket-change fee to $100, and introduced refundable tickets that cost more than nonrefundable ones. Further, the airline began charging $7 for a pillow-and-blanket kit, an amenity usually provided free of charge by other airlines.2 Breaking another low-cost rule, JetBlue moved away from ticket sales through its own Web site and signed up with travel agencies and the Galileo and Sabre global distribution systems in August 2006 and with online travel agencies such as Orbitz in January 2008. Further, it sold approximately 42.6 million shares of common stock to Deutsche Lufthansa, the German...
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...The development of Internet technology made it a lot easier for airlines to conduct business. The need of ticket agents decreased, which at the same time decreased costs. Also, with the use of the internet customer can compare the prices of competitors, which is to advantage of the low cost airlines. The industry goes along with upturns and downturns of the economy. The airline industry is also highly dependable on extreme events like the September 11, 2001 terrorist attack on the World Trade Center. Such events create fear in customers and therefore lower demand. Another important factor is fuel prices, which keep going up. Different competitors have different strategies on how to survive. Some airlines started charging for things that used to be free, for example beverages, checked-in luggage, meals, seat assignments and carry-on bags. Other carriers decided to fly on higher altitudes where oxygen quality is lower which results in less fuel being used (Shifrin). The economy crash in 2008 was not very pleasant for the airline industry. Many people could not afford to fly and chose cheaper, ground transportation instead. Once the economy started picking up, the regional airline industry noted higher revenues. It is the smaller, regional jets that fly more frequently than big airplanes like for example Boing 787 or Airbus A350. Manufacturers Bombardier (Canada), Embraer (Brazil), and Mitsubishi (Japan) have many orders for small single-aisle jets. While Boing and Airbus work on...
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...STRATEGIC MANAGEMENT (EBS5103) CASE STUDY INSTRUCTOR: Dr. Ahmet Beşkese BAHÇEŞEHİR UNIVERSITY May 2015 1. INTRODUCTION This report is based on strategic analysis of JetBlue from it’s the establishment date to year 2003. In order to the analysis, a precise strategy is decided upon for JetBlue Company. 2. HISTORY David Neeleman was born in Brazil, Sao Paulo in 16 October 1959. He attended the University of Utah for three years then he dropped out university and served a mission for The Church of Jesus Christ of Latter-day Saints in Rio de Janeiro, Brazil for two years. He made his beginning in establishing own business by renting out condominiums in Hawaii. Then he established his own travel agency and began chartering flights from Salt Lake City to the islands. He was co-founder with June Morris of charter airline Morris Air, a low-fare airline. From 1984 to 1988, he was an Executive Vice President of Morris Air. From 1988 to 1994, he was the President of Morris Air Corporation. In 1993, Morris Air was then acquired by Southwest Airlines for $129 million. For 5 years, he worked on the Executive Planning Committee at Southwest Airlines. By 1994, he left Southwest Airlines after signing a five year noncompeting agreement. With his experience of aviation, he established a company named Open Skies which a touch screen airline reservation and check-in systems company that acquired by Hewlett Packard in 1999. At the same time, acted as a consultant to another start-up...
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...Management Accounting 1 Kingfisher Airline Revival Plan Group 8 CONTENTS 1) Introduction | 3-4 | 2) Decision Analysis * Buy or lease decision * Aircraft configuration decision * Pricing decision | 4-7 | 3) Cost AnalysisVariable cost * Commission expense * Fuel cost * Employee costFixed cost * Aircraft leasing cost and depreciation * Landing and navigation cost * Interest expense | 7-9 | 4) Other Recommendation * Transform into low fixed cost structure * Lowering the currency related cost * Practice divisional profitability analysis * Join alliance * Practice grid routing system | 9-12 | 5) Reference | 13-15 | 6) Appendix * Estimation used by the relevant cost analysis * Estimation used by the sales mix analysis * Forecast Operation | 16-17 | 1. Introduction We are going to investigate Kingfisher Airlines (KFA) for in-depth analysis, which would integrate management accounting topics with cost behavior, sales mix, buy or lease decision and pricing decision making. Kingfisher Airlines was an Indian full-service airline established in 2003{1}. It started commercial operations, involving domestic and international flights, on 9 May 2005. On one hand, it was nominated by Skytrax as a world 5-Star Airline for the 2010 ranking period because of its excellent product and service quality{2}. On the other hand, Kingfisher Airlines had not made profit since starting operations in 2005, so it tried to...
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...Records and Time Warner Music, resigned and returned to his homeland, Malaysia. As Tony did not have any experience in running an airline, nor had any capital to start one, he raised money by mortgaging his house and using up his savings. He also brought-in three of his associates that is Datuk Pahamin A. Rajab, Abdul Aziz Abu Bakar and Kamarudin Meranun to start a low cost airline in Malaysia. Tony with the three as mentioned formed a partnership and set up Tune Air Sdn Bhd and bought AirAsia for a token sum of RM1.00 with RM40 million worth of debts. AirAsia was remodeled into a low cost carrier and by January 2002, their vision to make air travel more affordable for Malaysians had taken off. Tony turned the company around, producing a profit in 2002 and launching new routes from its hub in Kuala Lumpur, undercutting the former monopoly held by the national airline operator, Malaysia Airlines with promotional fares as low as RM1.00 (US$0.27). In 2003, AirAsia opened a second hub at Senai International Airport, Johor Bahru and launched its first international flight to Bangkok. Valued at RM2.3 billion, AirAsia is today an award winning and the...
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...TAP Portugal Luis Costa MBAA 518 Financial Management Embry Riddle Aeronautical University Table of Contents Abstract 3 Introduction 4 Firm Information 4 Leadership 6 Human Resource Management 7 Organizational Structure 9 E-Commerce 11 Culture & Ethics 12 Global Strategies 13 Politics 16 Conclusion 16 References 18 Abstract TAP Portugal, the Portuguese main airline carrier, first took to the skies in 1945 and changed management in 2000 with the current CEO, Fernando Pinto. It has since become an icon for the Portuguese people as a modern and quality carrier. Operating regular flights to 35 countries, TAP expands its network system through Star Alliance by means of a growing number of code-shared operations. It meets today’s challenges and competition by continuously investing in innovation and modernization effective through its human element and technical resources. Ethically conscience, the organization moves forward providing a variety of product and equipment improvements and embraces the environment with its green initiative program. It offers a collection of features suited for any customer need, driven by its customer driven policy, providing an experience one is sure to remember. Despite an impending privatization sale, TAP strives to move forward and continues to rise as a strong international competitor within the fierce aviation industry. TAP Portugal...
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...UNIVERSIDAD ESAN MAESTRÍA EN SUPPLY CHAIN MANAGEMENT 2012 - LA SALLE TRABAJO FINAL EMPRESA: DIVEMOTOR DETERMINAR EL SOBRE STOCK EN EL PRINCIPAL DEALER (CANADA) CURSO: MÉTODOS DE OPTIMIZACIÓN DOCENTE: ALDO BRESANI Alumno: * CALDERON MUSANTE, RODRIGO INDICE 1. Resumen ejecutivo ______________________________________ 3 2. Antecedentes ______________________________________ 4 3. Objetivo ______________________________________ 5 4. Limitaciones ______________________________________ 6 5. Análisis ______________________________________ 7 6. Conclusiones ______________________________________ 16 7. Recomendaciones ______________________________________ 17 RESUMEN EJECUTIVO Divemotor, es una empresa líder en el sector automotriz dedicada a la comercialización y servicios de post venta de autos, buses y camiones. Representa en el Perú a Daimler (Mercedes-Benz, Freightliner, Western Star, Detroit Diesel) y Chrysler Group (Chrysler, Jeep, Dodge). Para asegurar una respuesta eficaz y rápida a cualquier requerimiento del cliente, Divemotor mantiene un stock de repuestos que supera los 50000 ítems. La empresa cuenta con diferentes sucursales a nivel Nacional: * Región Centro (Lima) cuenta con el 75% de las ventas a nivel nacional * Región Norte (Trujillo). * Región Sur (Arequipa). El Dealer Canadá es el que mayor participación en ventas de repuestos tiene, contando con el 65% de estas...
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