New billion-dollar aircraft-repair base

Assignment Help Operation Management
Reference no: EM132234937

United Airlines announced its competition to select a town for a new billion-dollar aircraft-repair base. The bidding for the prize of 7,500 jobs paying at least $25 per hour was fast and furious, with Orlando offering $154 million in incentives and Denver more than twice that amount. Kentucky’s governor angrily rescinded Louisville’s offer of $300 million, likening the bidding to “squeezing every drop of blood out of a turnip.”

When United finally selected from among the 93 cities bidding on the base, the winner was Indianapolis and its $320 million offer of taxpayers’ money.

But a few years later, with United near bankruptcy, and having fulfilled its legal obligation, the company walked away from the massive center. This left the city and state governments out all that money, with no new tenant in sight. The city now even owns the tools, neatly arranged in each of the 12 elaborately equipped hangar bays. United outsourced Its maintenance to mechanics at a southern firm (which pays one-third of what United paid in salary and benefits in Indianapolis).

Discussion Questions

1. What are the ethical, legal, and economic implications of such location bidding wars?

2. Who pays for such giveaways?

3. Are local citizens allowed to vote on offers made by their cities, counties, or states?

4. Should there be limits on these incentives?

Reference no: EM132234937

Do you think this increases that firm efficiency

What type of organizational arrangement(s) do you see the two firms using in coordinating their worldwide operations? Which of the two companies has the more modern arrangem

Explain the basic concepts of ethics and fair treatment

Explain the basic concepts of ethics and fair treatment at work, what shapes ethical behavior, HR's role in establishing organizational ethics, and how that role might be bett

Advertising-personal selling and sales promotion

How to Monitor employee performance through the control function of management. How to Communicate the change process at both a strategic and tactical level. Why do most peopl

What do you do about perishables like frozen foods

A risk management plan must be detailed to the point that every aspect of the crisis is considered. Suppose you own a small convenience market, about the size of a 7-11 or a C

Planning stages of implementing major downsizing initiative

Your company is in the planning stages of implementing a major downsizing initiative. Like most well-kept company secrets, word has started to spread throughout the company. Y

Determine the level of reliability required for each

An engine system consists of three main components in a series, all having the same reliability. Determine the level of reliability required for each of the components if th

Identify whether the failure was legal or ethical

WestJet apologized to Air Canada on Monday and will pay $15.5 million to settle a lawsuit over a case of corporate espionage. What were the points of failure in this incident?

Illustrate what are elements of a comprehensive compensation

Illustrate what are elements of a comprehensive compensation also benefits package. Illustrate what are some of typical considerations for elucidate how organizations positi

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd