SERENITY AIRLINES Letter to Shareholders Dear Shareholders Bertha
SERENITY AIRLINES Letter to Shareholders
Dear Shareholders: Bertha: • Serenity Airlines-SA acquired an Aerospatiale ATR 42 and 2 Embraer ERJ 135 • Increasing the number of seats to 46 and 74 respectively, for a total of 158 seats considering the two Beechcrafts that we have now in circulation (disposed of one Beechcraft) • Increase our capacity to $111, 818 total gross revenue daily (319, 480 miles*$0. 35 CASM)
• It will be $40, 813, 570 ($111, 818*365) annually. • These acquisitions must be financed. • Serenity Airlines recently approached the Bank of Nova Scotia a long term loan for $2, 000 plus a short term loan for $1, 000 • SA Enterprise Value as of July 16, 2018 is $16, 617, 857 (collateral). • Serenity Airlines Vision and goals by 2020 would result in a well-balanced business portfolio. • A sound projected growth of sevenfold by 2050 (Andrew, 2018).
Nuryel: *When considering a possible takeover or merger, we decided to choose Sun. Set Air because of their gross revenue income of $4, 084, 601, a stock price of $16. 97, and reliability of 90. 7, very close to 91. 5, an excellent match. *With a net cash deficit of $1, 012, 087, once we diversify resources, spending more on marketing and advertising, and offering fare discounts on selected flights, surely we are expecting to improve revenues by next year. Improving technology. Letter to Shareholder
Being the VP of Finance, I will discuss the financial analysis of Serenity Airlines stated in the letter upon your request on following issues: • Increase in number aircrafts • Increase capacity in 1 year due to seats sold • Growing in the next years • Merging with Sunset Airlines You may send any questions you have to:
Linda: *As VP of Operations, as well as former VP of Marketing and Advertising, Serenity Airline’s Board of Trustees are officially in talks with Air Cargo. *Research has proven that Air Cargo is vital to the global economy. With the online shopping industry becoming a $400 billion dollar industry, discussions on patterning with local international shipping companies for cargo service. *35% global trade market, and increasing our social visibility is more than likely. Results next quarter
Julian: Environmental impact v Board of Trustees voted unanimously on the $2, 000 per quarter decision to fulfill the firm’s Environmental Corporate Responsibility taking care of the environment. v These funds help with research of full electrification or a hybrid commercial aircraft and observing ways to minimize the pollution attributed to the combustion of the fuel when flying an aircraft along with the disturbing noise brought to nearby neighborhoods. v The US Environmental Protection Agency or (EPA), regulates the emission standards of the US. In addition to new engine emission regulations, there is a growing number of programs—mandatory or incentive-based—to reduce emissions from in-use diesel engines. These initiatives are being implemented by all levels of government: federal, state, and local.
Julian: Incident: Kickback Problem 1. The marketing manager has a point -caught the employee’s brother attempting to use his pass 2. Although the employee’s brother was the one at fault 3. The staff members’ credibility came into question when his expense records were pulled up. 4. The finance manager should not ignore these irregularities.
5. The firm should enact the three-strike policy on this top staff member. 6. To lose a seasoned top staff employee would equal time and volume lost for the company. 7. The travel agency should take this into account. This employee’s history both negative and positive should always be considered. 8. The third strike should be termination
Linda: ü Hearsay due to the fact that it is an employee of our top travel agency rating out the top employee in all my staff. ü At some point this employee may have received kickbacks and this could be retaliation so it is difficult to tell. ü What seals the deal is the irregularities in the financial reports.
ü His financial privileges or his ability to spend revoked and he should be demoted. ü Code of Ethics has been violated over and over again. ü We can retain him and his clientele -demoted him and remove him of his access and privileges.
Bertha: Ø A bribe, side payment or a kickback is a serious problem in any industry, however, in the air transportation industry is not allowed and subject to prosecution. Ø Depending on the airline’s Code of Conduct and abiding by the policy and procedures set forth therein, after meeting with the employee, a decision must be taken to document the incident(s) and terminate the employee.
Conclusion and policy recommendation by Nuryel Carrasco Kickbacks and other forms of bribery If staff member is guilty of giving kickbacks to members of the agency then I vote he should get terminated for the following reasons: Flight Centre Travel Group (FCTG) takes a zero-tolerance approach to bribery and corruption due to professional ethical behavior and standards.
q Bribery and corruption are unlawful and will not be tolerated. q Bribery and corruption are criminal offenses and penalties can be severe for both companies and individual employees as proven in the past. q Audits exposed expense records irregularities of the Company q The IR (incident report) states is against company policy to loan passes, therefore if the Employee fails to comply with this Policy, the employee faces dismissal or termination. q Employees who violate the law during the course of their employment may also be subject to criminal and civil action.
Q&A What can you call a Kickback? Call it rebating, call it kickbacks, call it what you will, it's illegal under federal law. How often it happens among the air transportation industry and travel agencies? Although it has been done thousands of times, not once has an agent been prosecuted, nor has an agent been challenged by enforcement authorities. Why is not prosecuted under the law? The answer lies in the refusal--publicly stated many times--of the Department of Transportation to enforce that law.
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