Colombia And Us Relationship Case Study

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Colombia and US Relationship
The United States is Colombia's biggest trade partner. The U.S. and Colombia Trade Promotion Agreement, which began in 2012, was put in place to increase investment, remove tariffs and other barriers to U.S. exports, increase trade, and promote economic growth in both the U.S. and Colombia. The major U.S. exports to Colombia are oil, machinery, agricultural products, and organic chemicals. The main U.S. imports from Colombia are crude oil, gold, coffee, and cut flowers. About 250 U.S. businesses have operations in Colombia. The United States’ direct investment in Colombia is mainly focused in the mining and manufacturing sectors.
The two countries are also parties to seven international environmental
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This significantly lowers costs, as fuel accounts for 11% of the overhead costs for our airline.
♣ We have and will continue to source all the same planes from our current supplier, Boeing. We will enter an ACMI (Aircraft, Crew, Maintenance, and Insurance) lease with Boeing, in which they will provide flight deck, cabin attendants and maintenance crews, salaries included, as well as the responsibility of maintenance and insurances for the planes. This will significantly reduce the cost of training and maintenance.
♣ We will use the Boeing 737 MAX. These aircrafts are to be launched in 2017. They are expected to have the lowest operating unit costs in the single-aisle segment with the capability of reducing fuel burn and carbon dioxide emissions by an additional 13%. (ago, et al., "Market Realist", 2016)
♣ To maintain low fuel costs, we will be partnering with Petroecuador, the fuel supplier in the neighboring country of Ecuador. Ecuador’s fuel costs are among the top ten lowest fuel costs internationally.
Cabin Service
♣ Unlike our competitors, we offer leg-room and snacks free of charge. We also offer basic Wi-Fi.
♣ In-plane advertising and merchandise sales (duty-free, phone cards, etc.) will increase our profit margin.
Airports
♣ We will use a smaller airport which is typically less congested. This allows more trips and aircraft use as ground times and
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