Aerospace Management Case Solution & Answer

Aerospace Management Case Solution 

Question 1

  1. The purpose of Civil Aviation Authority of Singapore Act is to provide:
    1. Transfer of the airport undertaking of the CAA to a replacement company,
    2. Reconstitution of the CAA of Singapore,
  • Regulation of airport operations,
  1. Regulation of imposition of economic controls at airports,
  2. To revoke the chapter 41 of CAA act 1985 act and make important alterations to other written laws relating to airports in Singapore.
  1. According to SAR66, the Category B1 license is further classified into sub-categories
  2. B1.1 –Turbine
  3. B1.2 –Piston
  • B1.3 –Turbine
  1. B1.4 – Piston

B1 license is an aircraft type related license. The owner of this license is permitted to certify the “release to service” only of aircrafts that are permitted as ratings on the holder’s-license. B1 license owner does not act as the certifying staff in base maintenance. In the line maintenance environment, B1 owner may certify an aircraft for issue to service only after following maintenance.

For aircraft structure, power-plant, mechanical and electrical systems, the B1 license holder can:

  1. supervise or
  2. Issue certificates of release
  1. Relevant laws/regulations applicable to the following cases
    1. As Tommy wishes to work as a Category B2 license engineer on the A350 Aircraft, he should know the eligibility requirements for this job.

According to paragraph 17A of the Air Navigation Order, the SAR 66 describes the eligibility requirements for the issue of a B2 category license. The paragraph also describes the validity, use of the license for airplanes and helicopters.

Requirements are:

  1. Since tommy doesn’t have previous technical training he needs at least 5 years of practical maintenance experience on operating aircraft.
  2. Experience must be practical.
  • Or he needs, 3 years of practical maintenance experience on operating aircraft and completion of training considered relevant by the Authority as a skilled worker, in a technical trade;
  1. Or, 2 years of practical maintenance experience on operating aircraft and completion of a SAR-147 approved basic training course.
  2. At least 2 years of the required practical maintenance experience must be recent
  3. The entire duration of maintenance experience as required in Appendix 4 to this SAR-66 must be recent.
  • All recent practical maintenance experience must be demonstrated in a manner acceptable to the Authority.
  • The examinations in respect of category B2 aircraft type ratings shall be conducted by training organizations appropriately approved under SAR-147
  1. Mr. Tan was injured on the airport due to the irresponsible behavior or negligence of worker. Tort law which is a branch of civil law is applicable here. According to this law, injury, or a wrongful act done negligently involves strict liability. Mr. Tan can sue according to the negligent tort law. He can sue the contractor and the airport management.
  • John wanted to take action against Ali for a breach of contract. Mr. Ali did not sign any formal contract of purchasing an aircraft so Mr. John cannot sue him.

Question 2

  1. Income Statement and Balance Sheet of Superior MRO for the year ended 31 Dec 2017 are

Income Statement

Income Statement
Revenue $                 890,000
Less: Cost of Sales $                (576,000)
Gross Profits $                 314,000
Less: Operating Expenses
Administrative Expenses $                  (51,000)
Engineering Expenses $                  (79,000)
Total Operating Expenses $                (130,000)
Profit Before Interest and Tax $                 184,000
Less: Interest Expense $                  (24,500)
Profit Before Tax $                 159,500
Less: Tax Expense $                  (22,250)
Net Income $               137,250

Balance Sheet

Balance Sheet
Current Assets  
Cash and Cash Equivalents  $                   17,100
Accounts Receivables  $                 108,900
Inventory  $                   52,000
Total Current Assets  $               178,000
Non-Current Assets  
Property, Plant and Equipment  $                 319,000
Total Non-Current Assets  $               319,000
Total Assets  $               497,000
Total Liabilities and Equities
Current Liabilities  
Accounts payable  $                   56,000
Total Current Liabilities  $                 56,000
Non-Current Liabilities  
Long Term Loan  $                 170,000
Total Non-Current Liabilities  $               170,000
Total Liabilities  $               226,000
Share Capital  $                 100,000
Retained Earnings  $                 171,000
Total Equities  $               271,000
Total Liabilities and Equities  $               497,000
  1. Financial ratios for Superior MRO are

Financial Ratios

Ratios 12/31/2017
Gross Profit Margin 35.28%
Operating Profit Margin 20.67%
Net Profit Margin 15.42%
Return on Asset 27.62%
Return on Equity 50.65%
Quick Ratio 2.25
Current Ratio 3.18
Debt Ratio 0.83
Working Capital 122,000
  1. c) Historical and current cost: The information in the income statement is expressed in terms of current costs (or close to current costs), while some balance sheet items are expressed in historical costs (which can be very different from current costs). This difference can lead to abnormal rates of results.

Inflation: If the inflation rate changes during the period under review, this may mean that these data are not comparable from period to period. For example, if the inflation rate for a year is 100 percent, then sales have doubled compared to the previous year, but in reality, sales have not changed at all.

Accounting rules: Different companies may have different strategies for recording the same business transaction. This means that comparing the proportions of different companies can be similar to comparing apples and oranges. For example, one enterprise applies accelerated depreciation while another applies straight-line depreciation, or one enterprise accounts for full cost and another accounts for equity.

Question 3

  1. In today’s knowledge economy, the most valuable asset of the company is its human resource – its employees. Their knowledge, skills, and their relationship with key customers could often be irreplaceable & could determine the success of the company. So much so, the planning of human resources is of paramount importance and an integral part of the strategy of the company. Following are the steps of the human resource are as follows;
    1. The first step is the identification of human resource goals and objectives.
    2. The second step is the effective assessment of the current human resource capacity.
    3. The third step is accurate forecasting of human resource requirements.
    4. The fourth step is the identification of the human resource gaps.
    5. The fifth step is integrating the plan with the overall strategy of the organization
    6. The sixth step is formulating the human resource action plan
    7. The seventh step is control, monitoring, and evaluation.
  2. Fulcrum Civil Aircraft Technology Research Centre
    1. The reasons due to which the good performance appraisal system is needed in Fulcrum Civil Aircraft Technology Research Centre are listed below;
      1. Since the Human Resource department of the company received several resignations, the effective performance management system support employees throughout their entire life from onboarding to exit. The performance appraisal has a long effect on the retention of employees provided it is transparent and fair. It could be used by employers as a tool for resource planning and counseling employees.
  • Secondly, the employees (scientists) want to be recognized and feel valued due to which the company needs effective performance appraisal as it would allow them to accelerate their effects towards achieving overall organizational goals and objectives…………………….
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