Part 7 of 7

Global Wings Airlines (GWA) is a publicly traded, Atlanta based airline. GWA is expanding its offering of flights to Western Europe. To facilitate this expansion GWA needs additional capital. Due to the large amount of capital that needs to be raised the company does not have sufficient internal financial capital available securities Assume you are a team of analysts who follow this company and industry. You have the task of analyzing the new issue of common equity for the purpose of (Do not use Customer Satisfaction ratings.) Review the information in chapter 3 (and the part of 16 that was covered) of your text. Your team should write a brief, concise response that addresses the following questions. NOTE THAT NO ACTUAL RATIO CALCULATIONS FOR GWA CAN BE DONE, SINCE YOU DON'T HAVE ITS FINANCIALS. You are to layout a model for the analysis. 7. GWA is also considering adding more destinations in the Northeast of the United States from its Atlanta and Memphis hubs. In the short term GWA would or having to purchase additional aircraft. The CEO proposed to a partnership with a small regional carrier called Northeast Express Airlines (NEA). GWA would use its marketing and online booking system offering flights to the Northeast. However, the flights would be operated be revenues from airfares for these flights. In exchange NEA would pay GWA a fee per passenger booked on one of these flights. It would be a seamless integration through the eyes of the consumer. The CEO refers to NEA as its first franchisee, hinting that this model may be used more often for future domestic financing through a bond issuance in the capital markets (and purchasing its own aircraft) to expand to the Northeast? Global Wings Airlines (GWA) is a publicly traded, Atlanta based airline. GWA is expanding its offering of flights to Western Europe. To facilitate this expansion GWA needs additional capital. Due to the large amount of capital that needs to be raised the company does not have sufficient internal financial capital available securities Assume you are a team of analysts who follow this company and industry. You have the task of analyzing the new issue of common equity for the purpose of (Do not use Customer Satisfaction ratings.) Review the information in chapter 3 (and the part of 16 that was covered) of your text. Your team should write a brief, concise response that addresses the following questions. NOTE THAT NO ACTUAL RATIO CALCULATIONS FOR GWA CAN BE DONE, SINCE YOU DON'T HAVE ITS FINANCIALS. You are to layout a model for the analysis. 7. GWA is also considering adding more destinations in the Northeast of the United States from its Atlanta and Memphis hubs. In the short term GWA would or having to purchase additional aircraft. The CEO proposed to a partnership with a small regional carrier called Northeast Express Airlines (NEA). GWA would use its marketing and online booking system offering flights to the Northeast. However, the flights would be operated be revenues from airfares for these flights. In exchange NEA would pay GWA a fee per passenger booked on one of these flights. It would be a seamless integration through the eyes of the consumer. The CEO refers to NEA as its first franchisee, hinting that this model may be used more often for future domestic financing through a bond issuance in the capital markets (and purchasing its own aircraft) to expand to the Northeast