Financial Accounting Depreciation at Delta Airlines & Singapore Airlines (Solution to Case #2) 24th November‚ 2009 1. Calculate the annual depreciation expense that Delta and Singapore would record for each $100 gross value of aircraft. a. Delta: i. Prior to July 1‚ 1986 the Delta airline assets were depreciated using Straight Line Method at 10% for 10 years for a salvage value of 10%. Depreciation Expense = (Cost of Asset – Salvage Value) / number of year
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Southwest Airlines 2011 Diagnosis: Southwest airlines began first flight in 1971. They experienced finance loss only in the first year. Southwest’s company vision is to keep a low fare with better customer service. According to different surveys‚ Southwest airline has the highest margin in all years except 2007 and passenger yield. Southwest has lowest average revenue passenger miles per passenger‚ load factors‚ unit costs per available seat per mile‚ and net debt. In order to maintain their
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Their plan has no class difference. They spend more times in the air rather than other airlines. They make very simple to their customers. Southwest has never offered meal service. They provide only cookies and beverage. Offering meal service can be $40 in their price. 2. What are the foundations of Southwest’s competitive advantage? Answer: Even though Southwest had many basics for success‚ a noticeable competitive advantage could be found in its cost structure. They really handled that issue very
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select or change seats‚ request to stand by for an upgrade‚ check baggage‚ change flights‚ and initiate multiparty check-ins. Delta plans to add more than 400 kiosks and enhance functionality to include international check-in and fee collection. With this change‚ Delta will offer customers more than 800 kiosks in airports nationwide. Airports such as Northwest and Delta airlines are now finding that the self-service kiosk is a valuable tool in the reduction of queues. But while the kiosk technology
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A “Hedge” of the Pack: A Review of Southwest Airlines Innovative Fuel Strategy While many airlines suffer from rising fuel costs‚ Southwest Airlines continues to emerge victorious in the aeronautical landscape. Other carriers now forced to increase prices to compensate for fuel costs‚ are now subject to the new mindsets of consumers who are opting for longer bus and car rides‚ or simply not traveling at all. The woes of the airlines industry have many posing the question if airline travel
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http://www.southwest.com Employees: 34‚901 Employee growth: 0.5% Southwest Airlines will fly any plane‚ as long as it’s a Boeing 737‚ and let passengers sit anywhere they like‚ as long as they get there first. Sticking with what has worked‚ Southwest has expanded its low-cost‚ no-frills‚ no-reserved-seats approach to air travel throughout the US to serve almost 70 cities in some 37 states. Now among the leading US airlines‚ Southwest still stands as an inspiration for scrappy low-fare upstarts the
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3010 – Organizational Behaviour Delta Air Lines: The Launch of Song‚ Case Assignment Fabian Schulze Wierling‚ Exchange Student‚ Germany Student ID: 1155065598‚ f.schulze-‐wierling@whu.edu Tasks 1) What is the main problem (apart from the general financial issues) facing Delta in this case? 2) What is Song’s overall guiding
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Southwest History 1966: Rollin King marched into Herb Kelleher’s law office with a plan to start a low-cost/low-fare airline that would shuttle passengers between San Antonio‚ Dallas‚ and Houston. Thought of this idea because businessmen were complaining about the commute. 1967: Kelleher filed papers to incorporate the new airline and submitted an application to the Texas Aeronautics Commission for the new company to serve Dallas‚ Houston‚ and San Antonio. ------4 year legal and regulatory
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Delta Airlines and United Airlines financial Reports Prepared for Dr. Alicia Luna Excelsior University Prepared by Terry L. Hamm 13 September 2014 SECTION I Introduction If you have not been on an airplane and you are over the age of 65‚ you are living under a rock! I have chosen to write my report on two of the largest passenger carriers in the United States‚ Delta Airlines and United Airlines. I will provide a brief introduction about both companies‚ their
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The Ms Delta has a history that shows poverty and inequality has shaped the communities. That history is one that has been difficult to overcome. Poverty and inequality has impacted both families and youth. The financial strain has been hard on the family structure in the Delta. As you can imagine the financial weight of a family is falling. Most men in the Delta have found that it is easier to abandon their offspring because they don’t have the economy to support them. The lack of education makes
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