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National Air Sapce - Essay Example

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This has created the dilemma of whether the companies should cancel their orders because their older aircrafts can still operate at a profit. The airlines will however not cancel the…
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National Air Sapce
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Download file to see previous pages Such a responsibility is likely to generate competitive advantage. In addition, Greenberg, McKone-Sweet, & Wilson (150) explain that premium customers are likely to offset social cost of service delivery and this will manage cost implications of the orders on the airline companies. The identified fuel efficiency will also reduce cost in the long term and increase long-term profitability. Legal obligations and consequences of breach of contract will also motivate the airline companies to uphold the orders and two possible remedies to breach of contract explain this. The companies will still be forced to make the purchases under the doctrine of specific performance and this will mean wasted time and money in judicial processes. Cancelling the contracts will also lead to monetary expenses in damages should the companies be allowed to cancel the contracts but this would still be costly (Schaffer, Agusti, & Dhooge 108).
Upholding contracts for the new aircrafts offers advantages such as competitive advantage due to social responsibility, increased profitability due to fuel efficiency, and ability to raise prices among premium customers without reducing utility. Cancelling the contracts would however have legal implications into unnecessary financial losses.
The companies will therefore go ahead with the contracts because of the many advantages of the move and disadvantages of cancelling the contracts. These motivate purchase of the new fuel-efficient aircrafts.
Greenberg, Danna, McKone-Sweet, Kate, & Wilson, James. The new entrepreneurial leader: Ddeveloping leaders who shape social and economic opportunity. San Francisco, CA: Berrett-Koehler Publishers, 2011. ...Download file to see next pagesRead More
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