CORPORATE RESEARCH PAPER about US airways Example | Topics and Well Written Essays - 1250 words

CORPORATE about US airways - Research Paper Example The company’s maximum frequency is between New York, Boston and Washington D.C., where it provides hourly services. In order to diversify their operations internationally, the US Airlines decided to merge with American Airlines in February 2013. From the research it was found that if the merger is successful then it has the potential to create the largest airline in the world in terms of global market access. The deal is expected to close by the end of third quarter this year. The key shareholding pattern of the merger is that US Airways would hold 28% stake of merged company where as the American Airlines will hold the remaining 72%. It was also decided between the shareholders’ of both the companies that the merged entity would carry the name and brand of American Airlines and the holding company will be named American Airlines Group Inc. The airline company has reported operating income over USD 425 million for the year ending 2011, with net income over USD 71 millio n. The total asset of the company was found to be USD 8.34 billion for the year ending 2011. The subsidiaries of US Airways are Piedmont Airlines, Inc., Shuttle inc., PSA Airlines, Inc., US Airways Express, Material Service Company, Inc., Airways Assurance Limited, LLC, Mesa Air Group, and Potomac Air, Inc. The following table highlights the breakdown of sales assets and income of US Airways and their involvement in international trades: B. Foreign Exchange (FX) Risk Management Policy The company is centrally managed and the management actively participates in corporate governance. The company also has many subsidiaries that are located in the domestic market as well as the international markets. The subsidiaries of US Airways are Piedmont Airlines, Inc., Shuttle inc., PSA Airlines, Inc., US Airways Express, Material Service Company, Inc., Airways Assurance Limited, LLC, Mesa Air Group, and Potomac Air, Inc. In order to maintain accountability between various divisions, the Board of Directors is represented by the chairman of the company who is the most important individual regarding execution of strategic decisions taken by the Board. The chairman of the company is assisted by vice chairman and many professionals belong to different areas of expertise such as the Finance committee, labor committee, and so on. The parent company of US Airways is the US Airways Group which is headquartered in Tempe, Arizona, United States. The company operates in Aviation sector which requires fuel consumption. The underlying of fuel is the crude oil prices that are very volatile and uncertain. This exposes the company to transactional risk. Also, the company has prominent exposure in international markets which implies that US Airways operates in different currencies. Any appreciation or depreciation of home currency with respect to foreign currency may turn out to be favorable or unfavorable, ultimately exposing the company to translational risk when the company would prepare its consolidated financial statements from collecting data from different subsidiaries (Triantis, pp.558-562). In order to manage these risks the company used currency hedge and forward contracts prior to the year 2008 and reported them in their consolidated financial reports using hedge accounting at fair value of hedged assets and liabilities. C. Use of Derivatives for Funding, Investing and Other price Risk After the third quarter of 2008, US

Consumers and the law Essay Example | Topics and Well Written Essays - 2500 words

Consumers and the law - Essay Example He agrees to accept a price reduction of  £500 as well as the dealer being responsible for fixing the brakes. This does not bring about any other issue in the scenario so it would seem as though the dealer’s agreement to accept less as well as fix the problem would not be disputed. The amendment to initial offer would constitute as a condition, as defined in the case of Wallis v Pratt [1911] AC 394 as: "[a condition is] an obligation which goes so directly to the substance of the contract, or in other words, is so essential to it very nature that its non-performance may fairly be considered by the other party, as a substantial failure to perform the contract at all.†3 Another operating issue that is important to note is if Amir is dealing as a consumer or operating in the course of business. The facts indicate that although he intends to use it mainly for personal use, he also intended to use it for business purposes, and more importantly, the purchase money came out of his business account. If the court determines that Amir is operating within the course of business, he will not be protected under the additional consumer protection given under s.48 Sale of Goods Act1979, as well as provisions contained within the Unfair Terms in Consumer Contracts Regulations 1999, among others.5 This issue becomes relevant with regards to the situation involving the clutch. Amir seems to be seeking rescission. There are three problems with this is. The first issue is whether or not it can be seen that Amir is acting as a consumer. If it can be seen that Amir was acting as a consumer, he would be protected by s.48A(3) Sale of Goods Act which indicates that: â₠¬Å"...goods which do not conform to the contract of sale at any time within the period of six months starting with the date on which the goods were delivered to the buyer must be taken not to have so conformed