Safety Issues in Airlines and Their Impact
Scenario
You have almost completed your analysis of Companies A and B and are scheduled to deliver your proposal to the board. While researching to ensure accurate and up-to-date data, you learn that two of Company B's aircraft have been grounded over the past couple of months due to technical issues, one of which could have been an FAA safety violation.
The subsequent investigations, technical repairs, and grounded flights have led to a 10% drop in their revenue over the last month. Mitigation expenses have added about $80,000 to their operating costs. Company B has also suffered negative customer feedback due to some of the ground crew's mishandling of the situation.
In this assignment, you will write an executive summary to capture the situation and share your analysis and perspective on how these safety issues might affect your acquisition recommendation.
Prompt
Write an executive summary describing the newly discovered concerns and your analysis of the situation at Company B.
Specifically, you must address the following rubric criteria:
Summarize the safety issues and their direct impact on the company over the past month.
Describe how this news affects factors other than revenue, which will then affect the company's value.
How does this affect your initial performance evaluation and analysis of the company?
Do you see any additional risks? Explain.
Will it impact your recommendation about acquisition? Why or why not?
What additional information about this situation will you need to make your final decision?
What to Submit
Submit a 1- to 2-page Word document using double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to APA style.
Executive Summary
Student Name
Institution
Course Name
Instructor
Date
Executive Summary
Introduction
TransGlobal is confirming the research and data checking have been done as it prepares for the final presentation and recommendation concerning possible acquisitions of two small airlines. Our organization and management should be informed of the additional information regarding Company B discovered during this last research. Below is a summary of the circumstances and how they might affect my acquisition recommendation.
Summary of Situation
Several of Company B's aircraft have recently experienced technical issues that have grounded them for a time, perhaps due to an FAA compliance breach. The profession of FAA system safety entails using specialized technical and managerial abilities for the systematic, proactive detection and management of risks during an operation, program, or activity. Preventing accidents is the main goal of system safety (Kešečová et al., 2021). In addition, bad consumer feedback and a 10% decline in sales over the past month have resulted from the questionable conduct of the ground crew concerning the problem. The business's operational expenses have increased by $80,000 due to mitigation measures. It is concerning