Use discount code: LoveMyDaddy and get 19% OFF your order! Hurry up! Get your Father’s Day Gift from ExclusivePapers.com!
Wensveen (2011) argued that globalization has made the world one economy, which has increased competition and lowering costs providing airline with more products that suits their needs. This has increased the economic efficiency of many countries (Wensveen, 2011). However, many countries prohibit the manufacture and sale of aircraft to certain countries due to political and economic sanctions imposed on them. Additionally, airline service business requires large array of costly equipment and facilities to suit the increased communication and transportation technology (Wensveen, 2011). Financing of these facilities is through loans and the issuance of stock, which is a risky form of business financing. This has led to closure of many airlines due to the uncertainties in the market. Notably, financing of the airlines are through personal equity money in their commencement making it expensive and unaffordable to many.
Buy Unionization in Air Transportation essay paper online
According to Wensveen (2011) the air transport is a speculative business enterprise and common channel of funds are not easily available. Many banks could not offer to lend money to investors since it is a risky business. In addition, the reputation of the airline industry is marred by the perception that it depends on its operating ability relatively than the worth of the company administration. This means that the small size of operation does not require large amounts of funds.
As the industry grew, it demanded that airlines source funds from the public, thus the Airport revenue bonds became a critical financing tool to airline companies. These companies possess a steady record of creditworthy economic performance (Wensveen, 2011). These companies earn the rank of premium-grade investments in the excepted public bond market. Notably, the preservation and probable improvement of the tax off the hook status of this financing instrument is critical. Wensveen (2011) stated that this will enable them to assemble the capital burden of core airports. Leasing has been an alternative financing tool in investing in the airline business; in this case, the operational leasing contract bears the company the leasing cost without tying up its capital.
Related Free Analytical Essays
- Water Use
- Cost-Effective Analysis
- CAFR Analysis
- Benefits of Cross Sectional Communication in International Business
- NFP Organization Analysis
- Strategic Management Case Study
- Total Quality Management Issue
- Physical Security Issues in the Port Facility
- Comparative Study on the Implementation of e-Government in Arab Countries
- Defining Transformational Change