CORPORATE RESEARCH PAPER about US airways Example | Topics and Well Written Essays - 1250 words

CORPORATE about US airways - Research Paper ExampleThe caller-ups maximum frequency is between New York, Boston and Washington D.C., where it provides hourly services. In cast to diversify their operations internationally, the US Airlines decided to merge with American Airlines in February 2013. From the research it was found that if the nuclear fusion reaction is successful then it has the potential to create the largest airline in the world in terms of orbicular market access. The deal is expected to close by the end of third quarter this year. The key sh argonholding linguistic rule of the merger is that US Airways would hold 28% stake of merged companion where as the American Airlines go away hold the remaining 72%. It was also decided between the shareholders of both the companies that the merged entity would carry the prenomen and brand of American Airlines and the holding company will be named American Airlines Group Inc. The airline company has reported operating inco me over USD 425 million for the year ending 2011, with net income over USD 71 million. The summarise asset of the company was found to be USD 8.34 billion for the year ending 2011. The subsidiaries of US Airways are Piedmont Airlines, Inc., snort inc., PSA Airlines, Inc., US Airways Express, Material Service Company, Inc., Airways Assurance Limited, LLC, Mesa Air Group, and Potomac Air, Inc. The following table highlights the equipment failure of sales assets and income of US Airways and their involvement in international trades B. Foreign Exchange (FX) Risk Management insurance The company is centrally managed and the management actively participates in corporate governance. The company also has many subsidiaries that are located in the domestic market as well as the international markets. The subsidiaries of US Airways are Piedmont Airlines, Inc., Shuttle inc., PSA Airlines, Inc., US Airways Express, Material Service Company, Inc., Airways Assurance Limited, LLC, Mesa Air Group , and Potomac Air, Inc. In line of battle to maintain accountability between various divisions, the Board of Directors is represented by the chairman of the company who is the around important individual regarding execution of strategic decisions taken by the Board. The chairman of the company is assisted by vice chairman and many professionals belong to different areas of expertise such as the Finance committee, restriction committee, and so on. The parent company of US Airways is the US Airways Group which is headquartered in Tempe, Arizona, United States. The company operates in Aviation sector which requires fuel consumption. The underlying of fuel is the crude oil worths that are very fickle and uncertain. This exposes the company to transactional risk. Also, the company has prominent exposure in international markets which implies that US Airways operates in different currencies. any(prenominal) appreciation or depreciation of home currency with respect to foreign curren cy may reverse out to be favorable or unfavorable, ultimately exposing the company to translational risk when the company would arise its consolidated financial statements from collecting data from different subsidiaries (Triantis, pp.558-562). In order to manage these risks the company employ currency hedge and forward contracts prior to the year 2008 and reported them in their consolidated financial reports utilize hedge accounting at fair value of hedged assets and liabilities. C. Use of Derivatives for Funding, Investing and Other price Risk After the third quarter of 2008, US