Can someone, please help me with this question. I am so confused.
Vineyard Air, a small business with one twin engine airplane that shuttles people from Boston to Martha's Vineyard, learns from reading in the industry trade magazine that the Federal Aviation Administration (FAA) has proposed a regulation change. Instead of requiring planes to undergo major 48 hour maintenance and inspection process after 1000 hours of flight time, the proposed regulation will require airplanes to undergo this process after either 1000 hours of flight time or 500 flights - whichever occurs first. As Vineyard Air's typical flight is 25 minutes, the change will require them to triple their major plane overhauls. As Vineyard Air has only one plane and services a small niche market, this change could bankrupt them.
What should Vineyard Air do regarding the proposed change?
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There is nothing they can do about the new FAA regulations, as they are too small to lobby against the change in the law. Let's say they make 10 flights a day, once an hour in a 10 hour flying day (that would ...
A small market niche airline is faced with new FAA regulations that greatly increases their down time for required maintenance. What can the single plane airline do about it?
FedEx Case Study Questions: Why did stock decline at the J.C. Penney announcement?
(See attached file for full problem description)
1. Why did FedEx's stock decline at the J.C. Penney announcement?
2. Describe the competition in the overnight package delivery industry, and the strategies by which these two firms are meeting the competition. Do you think either firm can attain sustainable competitive advantage in this business?
3. How have FedEx and UPS performed since the mid-1980s? Which firm is doing better? Analyze in depth to discuss all insights you obtained from these firms' financial statements, ratios, stock price performance, and EVA. In your opinion, which firm is "excellently" managed?