Can any expert in this field help me ? just fleet and compensation only

Please look at the attached for fleet and compensation only.I have made changes from decision 5 to decision 6.I am doing a stimulus for the airline and I am trying to get my revenue and stock up.please provide a rational for decision 5 and 6 for fleet and compensation only.

MBA6028 Period 5 & 6 Decisions Airline Simulation Due: 6/14 & 6/17 Emma: Fares and Marketing Fares Decision Fare per Mile Fare Structure Cabin/Food Service Period 5 40 Cents Normal Free soft drinks and pretzels or peanuts Period 6 Rationale: Period 5: Dove Airlines operates as a \"Normal\" airline.\" Therefore, our fare per mile of $0.40 is consistent with our fare structure. We will continue to offer free soft drinks and pretzels or peanuts for our passengers to increase loyalty to our airline. Period 6: Dove Airlines will not be making any changes to the fare per mile, which still remains at $0.40; we continue to offer free soft drinks and pretzels or peanuts. These decisions have helped us begin to turn a profit. Marketing Decision Promotion Budget Advertising Budget In-Flight Magazine Current Salespersons Sales Person(s) Hired Estimated Salesperson Cost Cargo Marketing Budget Period 5 $3,000 $2,500 No 1 $0 $24,000 $0 Period 6 Rationale: Period 5: The Promotion budget was raised to $3,000 in order to pull in new customers, and the advertising budget was lowered to $2,500. We will not offer an in-flight magazine since we don't wish to take on that expense at this time. We will keep our sales person, but not hire any additional, and we will not be entering the cargo space, again to save on costs. Period 6: We are leaving the budgets the same, but hiring an additional sales person to help us expand our reach and sell more tickets. Because of this added expense, we will be leaving both the promotion and advertising budgets the same as Period 3. Sabrina: Compensation, Fleet Compensation Decision Quality & Training Budget Compensation Policy Period 5 $1,200 Period 6 $20,000 0.00% above prevailing wage for managers and pilots 0.00% above prevailing wage for managers and pilots Rationale: Period 5: Dove Airlines has decided to maintain its Quality and Training Budget at $ 1,200. To provide quality service, training is an imperative. Training is an essential part of making an employee better at work and delivering best result. Since the airline industry is a service industry where manpower is the biggest asset of a company, it is important that every employee is well trained. Hence, training employees is very important. Also, the efficiency of a well trained staff is very high as compared to less/ non trained staff. Hence, the potential exists for Dove Airlines to achieve high returns in the form of higher efficiency against the spending in training and quality. Further, better trained employees means better customer service, which results in better customer satisfaction, and hence, higher profits. Therefore, quality and training budget shall be kept at $ 1,200. Period 6: Fleet Decision Maintenance Period 5 Level2: some additional cleaning and maintenance. Cost: $2,500 per aircraft per quarter. Fuel Contract 50% purchased on open market and 50% on contract Acquisitions Leased 3 Saab 340 at $432,000 Period 6 Level2: some additional cleaning and maintenance. Cost: $2,500 per aircraft per quarter. 100% on contract Leased 3 British Aero 31 at /quarter 2 aircraft disposed Disposals Aircraft Beechcraft 1900 Beechcraft 1900 British Aero Saab 340 Period 5 Seats Status 19 Owned Decision Keep 34 Owned Sell 18 34 Owned Leased Sell Keep $246,000/quarter 3 aircraft disposed Period 6 Aircraft Beechcraft 1900 Seats 19 Status Owne d British Aero 31 Saab 340 18 34 lease lease Decision keep terminat e Rationale: Period 5: Period 6: Steve: Routes, Corporate Route Decision Period 5 Route Aircraft Flights Total Seats Fare Sale 9A-600 Miles Saab 340 3 102 2-month sale 11C-340 Miles Beechcraft 1900 3 57 1-month sale 4D360 Miles Saab 340 3 102 2-month sale 13E-400 Miles 17R-600 Miles Saab 340 Saab 340 3 4 57 136 1-month sale 3-month sale Period 6 Route Aircraft Flights Total Seats Fare Sale 9A-600 Miles Saab 340 11C-340 Miles Beechcraft 1900 4D360 Miles Saab 340 13E-400 Miles Saab 340 17R-600 Miles Saab 340 Rationale: Period 5: According to Smith, Golden, and Deighan (2011), regional airlines generally fly routes that terminate in larger cities that have major airline connections. Passengers prefer nonstop flights at convenient times and this factor can stimulate demand. Our strategy was not to compete in all the markets, but concentrate our efforts at providing the greatest quality services on fewer routes. Therefore, Dove Airlines flew the following Routes: A, C, E., and R. Route R (Resort) is a lucrative route and is consistent with an aggressive strategy. No airline flies this route. Dove Airlines can dominate this route over the long term. Our Route Decision will enable us differentiate our airline in these markets by your frequency of service (flights per day in a given market), seats flown per day in that market, aircraft choice for that route, and fare sales (when necessary). Dove Airlines has embraced market penetration by increasing sales and by cutting costs; it incorporated the available resources. Planes routes have been rescheduled to ensure that routes that have more passengers are given priority. Our aircraft are scheduled to ensure that resources are used to the maximum for more profits. In collaboration with other international airlines, Dove Airlines also continues to serve the Resort route (R) with one flight a day to continue to develop this market. Period 6: Consistent with our aggressive strategy, and our objective of increasing our profits while offering quality services, Dove Airlines decided to sell two Beechcraft 1900 and lease three Saab 340. Saab 340 has a greater seat capacity and offers the convenience that our passengers expect. In addition, we also increased the number of daily flights to serve more passengers and to communicate quite clearly that our passengers can rely on us for frequent flights. Dove Airlines will offer discounted fares of 1-month on Routes 11C and 13E; 2-month sale on Routes 9A and 4D; and 3-month sale on Route 17R, the resort destination. We expect a lot of tourists at this period and wish to offer them price incentives. The Resort route is a new market we wish to develop over the long term. Corporate Decision Social Performance Budget: Social Responsibility Area: Period 5 $10,000 Health and family care issues Period 6 Rationale: Period 5: The trend within the airline industry has been a commitment to corporate social responsibility (CSR) (Grant, 2010). It is useful for gaining more customer loyalty and contributes to the sustainable environmental practices and economic prosperity in the environment where they operate (Arango, 2017). Porter and Kramer (2006) identify three reasons why CSR might also be in the interests of a company: \"the sustainability argumentCSR is in firms' interests due to a mutual interest in sustaining the ecosystem; the reputation argumentCSR enhances a firm's reputation with consumers and other third parties; and license-to-operate argumentto conduct their businesses firms the support of the constituencies upon which they depend.\" Therefore, we believe that CSR is good for business and Dove Airlines decided to continue meeting its CSR obligations. Period 6: CSR is good for business. It has helped our image by engaging in projects such as health and family issues our target markets care about. Therefore, Dove Airlines has decided to increase its Social Responsibility Budget to $10,000.00. This will help to cement our relationship with the constituencies we serve. Bill: Financing, Special /Incidents Financing Decisions Stock Sold Dividend Paid Short-Term Loan Long-Term Loan Purchase 90-day CD Period 5 $0 $0 $0 $0 $500,000 Period 6 Rationale: Period 5: Due to the increase of profit purchasing a CD will allow Dove Airlines to generate more revenue through interest paid on our CD at maturity. At this time it seemed like we were financially secure enough to set aside the funds and not risk going further into the red. Period 6: Due to our continued increase and movement into the black, Dove Airlines has decided to purchase another 90-day CD this quarter. This will allow for our funds to continue to grow and make more for us. This should not cause us any issues. Special Decision Incident Choice Period 5 Diversification- Auto Rental 2. Do not begin the auto rental business. Period 6 Rationale: Period 5: Since it is hard to determine the validity of the claim made against our competitor, Dove Airlines decided to leak the issue to a local investigative reporter. They will publish what they find which will simultaneously address the issue and send potential customers our way. Period 6: Since there are two different types of risks when it comes to diversification, undiversifiable and diversifiable. Diversifiable is \"also known as "unsystematic risk," and it is specific to a company, industry, market, economy or country; it can be reduced through diversification. The most common sources of unsystematic risk are business risk and financial risk. Thus, the aim is to invest in various assets so that they will not all be affected the same way by market events.\" (investopedia.com, 2016). This means that since the rental agency at the small airport would be directly linked to the airline operations it is not a good decision to make. If we were to incur a loss in airline sales so too would our rental company. This also, will take funds away from our airline which we currently cannot do. Perhaps in the future we would be able to separate the two and make two successful companies. At this time it is not in the best interest of Dove Airlines to go into the car rental business. References Arango, A. (2017). The shift of the airline industry to corporate social responsibility (CSR). Retrieved from https://www.brookfieldav.com/single-post/2017/02/24/The-Shift-of-the-AirlineIndustry-to-Corporate-Social-Responsibility-CSR Grant, R. M. (2010). Contemporary strategy analysis, 7/e. John Wiley & Sons, Ltd. investopedia.com (2016). The Importance of diversification. Retrieved from http://www.investopedia.com/articles/02/111502.asp Porter, M. E. & Kramer, M. R. (2006, December). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 78-92. Smith, J. R., Golden, P. A., & Deighan, M. (2011). Airline: The strategy simulation. Interpretive Simulations, Charlottesville, Virginia, USA