{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}


CLASS PROBLEM Tower Air - CLASS PROBLEM Als Airline was...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CLASS PROBLEM Al’s Airline was founded by David Defendant as an international charter airline. The company's signature route, which accounted for roughly one-quarter of its revenue, was scheduled passenger service from New York to London. Defendant served as Chairman of the Board and Chief Executive Officer of Al’s. Defendant and his family owned a substantial majority of the outstanding common stock and a controlling interest in the company. As a result, the other officers and directors served basically at Defendant's pleasure, and Defendant controlled the firm's management and operations. In 2000, Al’s business began to hit turbulence and the company lost twenty million dollars. Nevertheless, Al’s added a route from New York to Santiago, Chile, mainly because Defendant’s daughter expressed a personal interest in the route (i.e. she wanted to visit her boyfriend more often). The route never turned a profit.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}