Situation

HighFlierCo, a major US airline, had recently experienced significant financial difficulties due to increased competition and new industry cost trends.

Complication

Fleet management is crucial, due to the asset-intensive nature of the aviation industry. HighFlierCo faced two important questions about its own fleet management; the answers would directly impact future financial performance.

Key questions

• How could HighFlierCo best manage its fleet to help turn around its business?
• Should it exercise purchase options on 10-20 new aircraft?
• Should it ground 60 of its current aircraft?