Singapore may plan to use the equipment over fewer years as the estimate a higher residual value. Singapore Airlines is using a residual value of 20% over a relatively short useful life, compared to Delta Airlines over a 20 year useful life with 5 % residual value. There is a significant difference in the depreciation expense and this has an impact on comparing profitability of the companies. The company is changing the useful life of its aircraft from e.g. 15 to 20 years for Delta (April 1, 1193) to reflect in the aircraft replacement strategy.
property was $1.7 billion on December 31, 2014 and $1.6 billion on December 31, 2013. Residual values for owned aircraft, engines, spare parts and simulators are generally 5% to 10% of the cost. Accounts Receivables Accounts receivable is the funds Delta Airlines Inc. is entitled to because of services or goods it has provided to its travelers. Per the 10K report Delta Air Lines Inc. accounts receivable primarily consist of amounts due from credit card companies for the sale of passenger airline tickets, customers of our aircraft maintenance and cargo transportation services and other companies for the purchase of mileage credits under the SkyMiles Program. Delta Air Lines Inc. provided an allowance for uncollectible accounts equal to the estimated losses expected to be incurred based on historical chargebacks, write-offs, bankruptcies and other specific analyses.
Besides offering airline services, QANTAS Group has been offering various kinds of other services; QANTAS Freight, QANTAS Link, Q-Catering and QANTAS Loyalty. Since its inception, QA pioneered in offering quality airline services. It has won many accolades for achievements and has been recognized as a successful airliner. Qantas Airlines along with Jetstar serves operates in 58% of Australian domestic markets and 42% of International markets in terms of passenger distribution (Qantas Data Book, 2014). QA offers all classes of services, whereas Jetstar offers low cost domestic services.
GLOBAL AIRLINE ALLIANCES (GALs) ANALYSIS AND AIRLINES NETWORK DEVOLOPMENT ABSTRACT Since the mid of 1990s, worldwide airlines have been enrolling in one of the three current and largest global airline alliances (GALs), STAR ALLIANCE is the very first airline alliance founded in 1997, then it was followed by ONEWORLD alliance in 1999, and SKYTEAM in the year 2000, during the expansion of these GALs, airlines from different contents started belonging in to join, GALs provided transportation for over two-thirds of all international traffic. This research studies the reasons that cause airlines to join collaborative scheme as a way for network development and to increase profitability by connecting the international traffic. The evolution of
American Airlines has a few strengths that puts the company above their competitors. Good hubs, loyalty programs, strong brand image, the largest airline fleet, good maintenance and infrastructure standard, are just to name a few. The regions dominant U.S. carrier came along with the company’s innovative mind to buy routes that encourages spreading hubs in the most tourist attracted places. Hubs increase rewards become broader redeeming meaningful awards as you fly across the globe with American. American Airlines AAdvantage program awards miles and Elite Qualifying Dollars for every airline affiliated with the oneworld alliance.
The company will require developing plans that will see them increase their presence in both the domestic and international market. However, the company must first prioritize on increasing their presence in the domestic market. That plans that will involve frequent flights to all the major cities in the U.S.A. Currently, the company has six major focus cities; New York JKF, Fort Lauderdale, Los Angeles, Orlando, and San Juan. While these cities continue to be profitable to the company (CAPA Center for Aviation, 2015), they should consider increasing their access to other cities as well.
There are seven vital characteristics that seem to get the substance of the belonging to the company which are: 1. Innovation and risk taking: Since the aviation industry is getting more and more competitive. Etihad airways aims to shin in the industry by making the best profits and providing the best service and product to the customer, therefore they have to start with their employees and make them as creative as possible. They recently built a new department that, which is called “Innovation Center”. It’s an examination focal point of greatness, where new thoughts are enlivened as “one of a kind items” and amazing encounters.