The assignment should be in business memorandum format, not in APA style. The memorandum should be approximately two pages not including appendices for the Excel spreadsheets and other information Mr. Taylor will need.
This assignment has three objectives:
Become familiar with the type and magnitude of mainline aircraft operating costs.
Understand the operating economics of new versus older aircraft.
Learn how net present value analysis is used in capital acquisition decision-making.
WestJet, Canada’s second-largest airline behind Air Canada, has engaged the aviation consulting firm IFC International to evaluate whether it should continue its expansion to Europe with used Boeing 767-300ERs (ER stands for extended range; this model entered service in 1988) or purchase new Boeing 787-9 aircraft. You are the senior financial analyst with IFC assigned to this project and will prepare a memorandum with your analysis and recommendations to Mr. Harry Taylor, WestJet’s Chief Financial Officer.
