Frontier Airlines Financial Analysis

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Recommended: Role of managerial accounting in contemporary business

One way to measure the success of a company is to examine, in depth, their financial history. Naturally, this includes all financial documentation past, present, and future. Setting goals and open communication in my opinion, can contribute to the financial success of a company. Without a strong team foundation, knowledgeable staff, and thorough accounting practices, I believe a company has no future. The choice of focus between managerial accounting and financial accounting can make or break a company.

US Airlines and Business Strategies
The paper given to read regarding US airlines and fuel expenses caused me to really ponder what I would do if I were the business owner in the given scenarios. Having a strong financial foundation …show more content…

I would speculate that different departments in their company aren’t focusing on how they can and should contribute to the financial growth of the airline overall. If each department was making effective business decisions that were coherent with the others, it would ultimately satisfy the goals financial accounting addresses in my opinion.
Approach
I would recommend a bottom-up approach to budgeting. Having lower management involved in identifying key factors helps. They can identify specific areas that need attention specific to their department whether it’s eliminating, adding, or restructuring an existing element of the business. It allows the company to come together as a whole to achieve its goals. It’s like the old saying, “teamwork makes the dream work. Working together paints a clear picture of who’s doing what, where it’s happening, and how it’s intended to be done.
Merger.
I do not believe merging the company or making cuts and downsizing are the only options open however, they are good options to have. Merging with a successful competitor will give Frontier Airline an opportunity to operate to its full capacity within its strongest department. Downsizing will surely cut costs by eliminating salaries not being paid. The unfortunate result is a loss of employment for the individuals laid off due to downsizing, thus decreasing economic

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