There is an active, competitive leasing (i.e., rental) market for most standard

Question

There is an active, competitive leasing (i.e., rental) market for most standard types of commercial jets. Many of the planes flown by the major domestic and international airlines are not owned by them but leased for periods ranging from a few months to several years. Gamma Airlines, however, owns two long-range DC-11s just withdrawn from Latin American service. Gamma is considering using these planes to develop the potentially lucrative new route from Akron to Yellowknife. A considerable investment in terminal facilities, training, and advertising will be required. Once committed, Gamma will have to operate the route for at least three years. One further complication: The manager of Gammas international division is opposing commitment of the planes to the AkronYellowknife route because of anticipated future growth in traffic through Gammas new hub in Ulan Bator. How would you evaluate the proposed AkronYellowknife project? Give a detailed list of the necessary steps in your analysis. Explain how the airplane leasing market would be taken into account. If the project is attractive, how would you respond to the manager of the international division?

Explanation / Answer

If the contract become activate then it will facilitate the people of this route.

further it will alro increase or develop the airplane facilities.

it will also help in growth of the country.

If the contract is accepted then it will definetly affect the leasing market since it is the huge investment and if it would be taken on lease it will produce income to lessee.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.