Managerial Accounting In Aviation 3320 - Anthoney Julkunen...

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Anthoney JulkunenAVSC 3320 – Managerial AccountingManagerial Accounting in Aviation11 September 2016JetBlue is quite an amazing airline when it comes to planning, controlling, and inmaking great decisions to execute their goals. They started out as just a small airline inNew York City trying to compete with the legacy carriers and to this day have met, keepmeeting, and exceeding their yearly goals. Now they are an award-winning airline withexcellent customer service and some of the youngest fleet of airplanes making theircompetitors scurry to compete against them.In 2010 and 2011, JetBlue had a goal to “Become America’s Favorite Airline” forits crewmembers (employees), customers, and shareholders. They were able to attain this goal by providing the JetBlue experience and amazing customer service to their passengers. JetBlue’s financial strategy was to, “attain positive free cash flow and long-term sustainable growth while also maintaining an adequate liquidity position” (p27, 2011). They wanted to build up the airline as quickly as possible, but had to manage theirgrowth, size, and age of their fleet in order to maximize revenue and not go bankrupt. One of JetBlue’s goals was to focus on expanding to new cities, but they had to keep, “focusing on key regions and keep attracting business customers while slowly building up leisure markets” (p27, 2011). In order to make money and keep customers in their current cities the airline had to make sure they had the number one product, while also making a profit. If they could not do that then they would have been unprofitable, thus making it harder to achieve their goals.  These different goals that this airline has set up 
each year is why JetBlue Airways has been shaped to be the great airline it is today. Theycontinue to expand to new markets and in markets they already fly in and out of. The airline still has a great product and each year keeps winning the JD Power award for excellent customer service shown towards their passengers. Managerial accountants provide information to managers for use within anorganization. They help in planning, controlling, and making decisions that affect thefuture of the organization. A managerial accountant can be helpful to the airlines byhelping decide how much they should charge for tickets each day in order to make aprofit. A managerial accountant could also help the airline see how much money they canspend on different marketing ads in order to get their business out to consumers. Theyhelp the airline see where their money is being spent and some ways that they could cutcosts or better spend their money in order to keep that profit. These are all different typesof managerial accounting positions that can help the company be profitable and attaintheir goals. One strategic answer that a managerial accountant can help with is to see if acertain city the airline flies to is profitable or not? The accountant could come up withdifferent operating expense tables that show where the allocated money for that city isbeing allocated. They could see and/or create a table that shows how much customers arespending on tickets and compare that figure to how much it cost for the airline to occupythe space, pay for employees, and fuel costs. In order for a managerial accountant to getsome of the information that the airline executives would want to know about he/shewould have to do some research. They might have to talk with accountants in differentareas of the airline to see where the money they get is being spent. The person may haveto come up with different types of graphs and charts that put together all of the airlines

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Term
Spring
Professor
CoryChamberlain
Tags
Managerial Accounting, Lufthansa, managerial accountant

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