SAMPLE ACCOUNTING ISSUES MEMO Memorandum To: Flyaway.com accounting files From: Student Name Date: X/X/XXXX Re: Gross or Net Reporting of Online Ticket Sales Revenues Background Flyaway.com (“Flyaway” or the “Company”) sells airline tickets to customers through an online platform, where customers can choose the airline of their choice. Once a customer purchases a ticket, Flyaway remits payment for the travel to the airline and retains a commission (roughly 10% of the ticket’s value). The airlines set all ticket prices. If a flight is canceled, the airline must refund the customer. On the other hand, if the customer’s payment is invalid, Flyaway.com assumes credit risk.
(a) Seller’s Deliveries. At the Closing, the Seller shall execute and deliver to the Buyer: (i) a bill of sale for the Aircraft, substantially in the form of Exhibit B; (ii) an Assignment Agreement with respect to the assignment to the Buyer of the Seller’s rights under the Assigned Contracts, substantially in the form of Exhibit C; and (iii) any other instrument of transfer that is necessary or appropriate to vest in the Buyer good and valid marketable title to the Aircraft and to assign to the Buyer all of the Seller’s rights under the Assigned Contracts. (b) Buyer’s Deliveries. At closing, the Buyer shall deliver or cause to be delivered to the Seller: (i) $US 16 million, by wire transfer of immediately available funds to an account of the Seller designated by Buyer to Seller in writing at least one Business Days prior to the Closing Date; (ii) the Note, duly executed by the Buyer; and (ii) an Assumption Agreement with respect to the Buyer’s assumption of the Assumed Liabilities, substantially in the form of Exhibit E duly executed by the
Use MDW 5010 “Master Record”, and FAA Passenger Data (see Course Documents for links) and an aerial. Chapter #3: You are the airport manager of an airport with approximately 8 million annual enplanements. Currently, your airport does not levy a Passenger Facility Charge. Your business plan proposes several related projects that you wish to finance to increase your passenger service capacity: A central landside passenger terminal $2.5 million Parking $1.2 million Remote aircraft gates $5 million Passenger Shuttle System $1 million 1. What is the maximum PFC revenue that can be generated at this airport?
United Airlines The WSJ recently presented data suggesting that United Airlines was not covering its costs on flights from San Francisco to Washington D.C. The article quoted analysis saying that United should discontinue this service. The costs per flight (presented in the article) included the costs of fuel, pilots, flight attendants, food, etc. used on the flight. They also included a share of the costs associated with running the hubs at two airports, such as ticket agents, building charges, baggage handlers, gate charges, etc.
As you analyze their dataset, please provide some details about: 1) business understanding (make reasonable assumptions, if you want); 2) data understanding and preparation; 3) modeling and evaluation; and 4) deployment. Providing a process for analytics would help convince Continental Airlines about your ability to conduct a predictive analytics project. To demonstrate the breadth of your expertise, please plan to show an application of one supervised and one unsupervised1 predictive analytics technique. As you present insights it would be great if you could show an interesting way to visualize the insights – you can always use IBM’s ManyEyes. • The details about the dataset are provided on the next page.
Management Report for T&H Airlines Executive Summary T&H is a domestic airline that until now has been self-insured. Current Company CFO, Bill Albertson, is studying the best option in terms of insurance for the company, to minimize risk at the lowest possible cost. To analyze this issue a simulation model for T&H Airlines was developed using the company data and the industry information. Two quotes were presented and considered by the company CFO. Quote number one has a premium of 150% of actual losses and a minimum and maximum of $5 and $12 per 1,000 insured, while policy two has a premium of 100% of actual losses and a minimum and maximum of $6 and $9 per 1,000 insured.
Examples of free products or services include gift certificates or free airline tickets that will be honored by another, unrelated entity. Therefore, in this case, the $25 Referral Credit will be recorded in Income Statement as a reduction of Revenue. 2. When would Runway record the $25 Referral Credit? What are the entries Runway would
What is the e-Enabled Advantage? How did it link to the company’s strategy? The e-Enabled Advantage is the infrastructure necessary to e-Enabled enterprise is a complex system of systems that will channel the wealth of information generated by airplane avionics, airline operations centers, airport and air traffic managers, weather services, and regulatory agencies directly to the people who use the information, at the instant when that information is most useful. A new generation of visualization tools and decision aids will enable Boeing to create robust flight plans, revise and optimize schedules in real time, and all but eliminate unscheduled maintenance (http://www.boeing.com/commercial/aviationservices/brochures/eEnabled_Advantage.pdf) 3. What advantages would such an approach give Boeing?
7 b) What is the optimum number of staff required to meet demand, i.e. to check all passengers in on time. 7 c) If easyJet buy planes with a capacity of 375 passengers how many EXTRA staff will they need to check in passengers on time. (Assume cycle time is 6 minutes, demand is constant and passengers are solo travellers). 7
Southwest clearly defines its existing purposes, which is to provide the lowest fares for business and leisure travelers traveling between states. Instead of competing with large-scale airlines to fly international routes, Southwest focuses on “point-to-point” interstate short trips, and more on maximizing the profitability than focusing on market share. This strong vision outweighs the allurement of international flight market, keeping Southwest airline concentrated on its own niche to gain profit. B. Cost-consciousness Since low fares have become its selling point, decreasing the cost becomes very important. Southwest Airlines tries to save money by simplifying its operating process.