Legacy Carriers Airlines and Future Challenges Research Paper

Legacy Carriers Airlines and Future Challenges - Research Paper Example The operating expenses have been increasing significantly in the period of analysis for the legacy carriers while the revenue generating capacities have not been sufficient to cope up with them. .Most legacy carriers face significant losses in 2008 while the low cost carriers operate profitably except those in Asia. Passenger preferences also favour the low cost carriers. The study recommends the need for a relook on the business and marketing strategies of the free service airlines to compete with the low cost carriers. However the success of low cost carriers cannot be considered to be everlasting and cannot be considered as the success of a business model. The legacy carriers still form an integral part of the aviation industry. With the wave of liberalization and deregulation in the 1980s, airline industry has also undergone deregulation. Since the 1970s, there was tight regulation and rising hyper competition. The two main features of the regulated era were tacit collusion and avoiding head on competition (D’Aveni, 1995; Jarach, 2004).With the wave of deregulation, low cost carriers emerged as the new category attracting huge customers creating big challenge to the traditional full service legacy carriers. Traditional carries have found out difficult to compete with these low cost carriers in the deregulated era. It was argued that the tight regulatory practices in the airline industry might have led to many economic inefficiencies. This in turn had resulted in achieving low cost air transportation to public which was one of the core objectives of air transport policies. Hence deregulation wave started in the industry to improve efficiency and reduce airfares through rise in competition, air networks rationalization and airline governance enhancement (Gonenc and Nicoletti, 2001). Â  

Modules Work Coursework Example | Topics and Well Written Essays - 1500 words

Modules Work - Coursework Example Additionally, I would try to confirm the note with the customer including the balance due, interest rate, date of the note, date due and also the collateral pledged (Kinney, 2011). Basing on aging analysis and subsequent collection (WP 3.B) and discussion with the credit manager, an allowance of $600000 is reasonable and adequate (I examined correspondence and also discussed with the credit manager; explanation of audit legend) The late recording of the vouchers and early recording of the sales seems to be intentional earning inflation devices. This include vouchers 12458 and 12459 and sales invoices 33003, 33004, 33006, 33007, and 33009. Considering Biltrite’s internal controls relating to shipping and receiving, unintentional errors of this type and magnitude are not likely to appear (Kimmel, 2011). Suppose the auditor does suspect misrepresentation, consideration should be given to possible lowering of individual item materiality threshold. More so due to 3 million dollars check ‘kiting’ and misrepresentation of the Lawton related party loan in the previous module IX. 1. Lucas has satisfied some of the objectives of searching for unrecorded liabilities but not all. She has been able to determine whether additional invoices received and not un-vouchered are for charges pertaining to the year being audited. Additionally, she has determined whether the client included these charges in liabilities. This has been done by examining 2010 un-vouchered invoices and tracing 2009 charges contained therein to the client’s 12/2/09 Adjustment for unrecorded invoices. However, Lucas did