Budgeting in the Airline Industry in the Current Scenario

2596 Words10 Pages
New Learning 1) Introduction The main issue in the area of analysis is the budgeting in the airline industry in the current scenario with a broader look at the financial and managerial aspects of the same. The main issues pertain to the financial and economic problems of the Airline industry. The question that was a part of learning was what the typical costs are, and why fuel is becoming costly, what is hedging and which way did it benefit? What other costs exist and what are the impacts on the airlines and how those costs can be reduced? These questions led to the examination of the operation of the airlines industry and its cost and profitability analysis which was prompted by the information that the airlines that hedged the fuel cost seem to be better off than those that did not. This has opened up discussion on many things that involve costs, and the way profitability is achieved. The main issue in the learning effort was cost control and how it can be achieved and what part hedging plays in the issue. These opened up discussions on other aspects of costs and decision making. The important problems pertain to the overall issues in the industry. To understand that further there is a need to go deep into the issues with the help of earlier researches and learning and other published matter that pointed out these problems. American Airlines was able to get over the fuel cost crisis, much because the company was able to hedge the price hike thus saving $150
Open Document