Business Organizations

Thoroughly and completely answer the following scenario. APA style with references. About a page should be suffice.

 

Scenario 3

Regional Airline Corporation (RAC) is a U.S. regional airline operating a fleet of 70 regional jet aircraft. Escalating fuel costs have wiped out the company’s profits, and management is desperately seeking ways to cut costs.

At a management meeting, one of the corporate executives presents data showing that the Bombardier Q400 turboprop can carry the same passenger load at only slightly less speed with a greatly reduced operating cost. The data shows that the corporation could return to profitability by disposing of its jets and replacing them with turboprops.

  • What person or group within the corporation would have the authority to approve this fleet change?  Explain.
  • What written record, if any, should be made of the decision approving this fleet change?

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