1. Both Boeing and Airbus price their aircraft in US dollars. ANA‚ Japan’s largest airline‚ has ordered $16 billion in new aircraft split between Airbus and Boeing. Suppose the price for one Boeing model is $150 million. What is the current price for this aircraft in Japanese yen? Show the computation (hint: see Exhibit 14-2). There are many websites that show exchange rates‚ but here is one: http://www.usforex.com. 2. Just as with the price of a good‚ the price‚ or exchange rate‚ of a currency
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The Airbus A320 family consists of short- to medium-range‚ narrow-body‚ commercial passenger jet airliners manufactured by Airbus. The family includes the A318‚ A319‚ A320 and A321‚ and the ACJ business jet. Final assembly of the family in Europe takes place in Toulouse‚ France‚ and Hamburg‚ Germany. Since 2009‚ a plant in Tianjin in the People’s Republic of China has also started producing aircraft for Chinese airlines.[3] In June 2012‚ Airbus announced plans to begin building the 319‚ 320‚ and
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CASE STUDIES IN FINACE CASE STUDY 3: ESTIMATING THE COST OF CAPITAL QUESTION 1: a)b)c) The Capital Assets Price Model (CAPM) is used to describe the relationship between risk and expected return and is often used to estimate a cost of equity (Investopedia‚ 2009). The cost of equity(COE) of the discount rate is: R = Rf + β*(E - Rf) (1) Rf = Risk free rate of return‚ usually U.S. treasury bonds β = Beta for a company E = Expected return of the market
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SWOT Analysis of easyJet SWOT TEAM easyJet is Europe’s leading low fares airline. Formed in 1995 by Sir Stelios Haji-Ioannou‚ it has grown rapidly to become Europe’s fourth largest airline by passengers carried. Sir Stelios has credited easyJet’s success to two strategic imperatives. The first was “sweating the assets”‚ that is making sure that the planes were as full as possible and flying as much as possible. The second was a sophisticated yield management system which would set an infinite number
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EWMBA 299 – Competitive Strategy Southwest Airlines Introduction The domestic US airline industry has been intensely competitive since it was deregulated in 1978. In a regulated environment‚ most of the cost increases were passed along to consumers under a fixed rate-of-return based pricing scheme. This allowed labor unions to acquire a lot of power and workers at the major incumbent carriers were overpaid. After deregulation‚ the incumbent carriers felt the most pain‚ and the floodgates had
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Rolls Royce on the 5 (+1) forces of Porter matrice: For this case I will use the company Rolls Royce. Not the one which build cars but the historic one which create motors for aviation‚ marine or energetic solution. First let’s have a presentation of this company: Rolls Royce was founded by two men in 1906 in England‚ Henry Royce and Charles Rolls. They were producing motors for planes. The important thing we have to know is their motors were used a lot during the two World War. For example
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AviTrader MRO March 2011 - www.avitrader.com HEAVY MAINTENANCE It’s a buyer’s market - or is it? Industry News • ILFC is back in the game • Gazpromavia Maintenance • LHT‚ AFI/KLM E&M‚ GAMECO and more analysis: KEEPING YOUR CRJs IN THE AIR Editor‘s Page 2 Heavy maintenance: A buyer’s market or opportunities for all? Welcome to our March issue of AviTrader MRO‚ our ‘Heavy Maintenance Special’. In this issue‚ we have tackled the subject of heavy maintenance and asked
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transcowl‚ see Figure 1.) The support assembly of the thrust reverser on the left engine on the CML19 has failed‚ causing the AOG. Support Assembly Transcowl Figure 1: Pylon and Nacelle System Aircraft CML19 is part of Latin Airlines’ fleet of Boeing 767 aircraft. (Each aircraft is assigned a unique identifier of three letters and two numerals.) When an aircraft is designated AOG‚ the aircraft is not airworthy and all flights assigned to that aircraft are cancelled until the problem(s) causing
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HKU833 STEPHEN KO AIRASIA: FLYING LOW-COST WITH HIGH HOPES AirAsia started out as a Malaysian government-controlled‚ full-service regional airline that offered slightly lower fares than its number-one competitor‚ Malaysia Airlines (“MAS”). In December 2001‚ private entrepreneur Tony Fernandes took over the debt-ridden airline for the symbolic sum of US$0.26. Despite the air-travel downturn following the 11 September 2001 terrorist attacks‚ Fernandes believed that the timing for entering
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new Entrant is traditionally low due to high existing loyalty to major brands(airbus and boeing)‚ high fixed costs in R & D‚ scarcity of resources (technical )‚ high costs of switching companies (maintenance cost)‚ government restrictions or legislation‚ but with increasing backlog it might just open doors for a few interested players. Bargaining Power of Suppliers is high as it is mainly dominated by Boeing and Airbus. For
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