Capstone Papers-What person or group within the corporation would have the authority to approve this fleet change?
Regional Airline Corporation (RAC) is a U.S. regional airline operating a fleet of 70 regional jet aircraft. Escalating fuel costs have wiped out the company’s profits, and management is desperately seeking ways to cut costs.
At a management meeting, one of the corporate executives presents data showing that the Bombardier Q400 turboprop can carry the same passenger load at only slightly less speed with a greatly reduced operating cost. The data shows that the corporation could return to profitability by disposing of its jets and replacing them with turboprops.
What written record, if any, should be made of the decision approving this fleet change?