Question
both general and company/business specific. Risk is a central consideration in virtually all aspects of financial decision making. in the airline industry, consider the risks
both general and company/business specific. Risk is a central consideration in virtually all aspects of financial decision making. in the airline industry, consider the risks a company must account for in deciding to purchase new airplanes.
Will the new planes be deployed on existing routes or new routes?
What is the demand and pricing power on the existing and new routes?
What are the financing options on purchasing the new planes or should they be leased from a third-party owner?
All of these questions are based on risk analysis at some level and these questions must be answered before proceeding with any contracts or commitments.
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