United Airlines multinational finance Research Paper

United Airlines multinational finance - Research Paper Example United Airlines (UAL) is the major United States airline with the largest number of destination and passenger flights. It caters to the customers’ demand of maximum luxury and comfort during flight. It is the most in-demand airline for all employees and shareholders to invest. It is the world’s most inclusive set of connections worldwide with first-rate international gateways to Asia and Australia, Europe, Latin America, Africa and the Middle East. United Airlines has its base almost everywhere in the US with non-stop or one-stop services. Its fleets are the most fuel-efficient among all the US network carriers. It has ten most advantageous central locations in the four largest cities in the US (UAL, Factsheet 1). The overseas subsidiaries of UAL are United Express, Ted, Continental Express and Continental Connection carriers. United Express and Ted are premium and low-cost subsidiaries of UAL. With these two subsidiaries, UAL participates in the entire scale of the con sumer market. These are regional operators and act as additional services of UAL’s mainline network. These subsidiaries add to UAL’s operations by carrying flights that connect to the mainline service. These subsidiaries also can allow a more number of flights in smaller cities than would not have been economically viable with full sized mainline jet aircraft (UAL, Form 10-K 5). The total number of aircrafts owned and leased by the subsidiaries is 552 (UAL, Form 10-K 29). In 2009, UAL had an operating revenue from mainline passengers of $11,313 million as reclassified and $11,910 million as historical. In the same year, UAL had an operating revenue from regional passengers of $2,884 million as reclassified and $3,064 million as historical. Other operating revenues were $1,602 million as reclassified and $825 million as historical (UAL, Form 10-K 99). Foreign Exchange Risk Management Policy UAL being an international airline garners revenues and makes expenditures in nu merous foreign currencies. Some expenses include aircraft leases, commissions, catering, personal expense, advertising and distribution costs, customer service expense and aircraft maintenance. Fluctuations that occur in the rates of foreign currencies exchanges have a major effect on the service of UAL and â€Å"cash flows through changes in the dollar value of foreign currency denominated operating revenues and expenses† (UAL, Form 10-K 140). In order to effectively reduce the possibilities of risk, the Company may use foreign currency forward contracts to avoid a part of its vulnerability to changes. UAL does not enter into foreign currency derivative contracts for purposes other than risk management. In 2009 and 2010, United did not have any foreign currency derivatives. Continental had foreign currency derivatives with a fair value of $7 million in 2010 and $5 million in 2009. During these two years, according to financial statements, there were no significant hedge gain s or losses (UAL, Form 10-K 140). UAL emphasizes North American and hence is not vulnerable to US$ exchange rate risk. For this, UAL does not have to worry about risk related to foreign exchange while buying fuel because oil is traded in US$. This is one advantage for UAL (Muck and Rudolf 573). Some of the most common foreign exchange transactions of the Company are Canadian dollar, Chinese renminbi, Japanese Yen, British pound and European Euro (UAL, Form 10-K 74). UAL’s foreign currency exchange rate changes were 11 million in 2010 and 8 million in 2009 (UAL, Form 10-K 121). Fluctuations in foreign exchange rates can affect UAL in various ways. The scopes and variations of foreign exchange impact can be immense. Foreign exchange exposure is of significant importance to UAL as the large aircrafts travel into foreign markets (Levi 303). Net cash flows of UAL that include foreign currency cash flows have increased in 2010 by $941 million from 2009. There has been a steady incr ease in cash flow over the last few years and the principal sources

Prenatal Development Essay Example | Topics and Well Written Essays - 1000 words

Prenatal Development - Essay Example The paramount relevance of prenatal care in reducing infant deaths has been over and over again reported in studies and the connection between Fetal Alcohol Syndrome (FAS) and prenatal development corresponds, most obviously, to this factor. The impact of drug consumption during prenatal development is, therefore, highly perilous and the connection between prenatal development and FAS draws attention to the same danger. The relationship between prenatal development and Fetal Alcohol Syndrome offers one of the stimulating topics of profound analyses in the area and it is important in such analyses to determine when and how the fetus is affected. Therefore, this paper mulls over the various pertinent areas of the relationship between prenatal development and FAS in order to determine the proper utility of such analyses. In a reflective analysis of the broader picture of Fetal Alcohol Syndrome in the modern world, one becomes aware of the immensity of the issue and the prenatal exposure to alcohol is the single most cause mental retardation in the US today. Important studies on prenatal development prove that the use of alcohol during this period have a venomous impact on the growing facial features, the central nervous system of the fetus, the growth rate and birth weight. "Alcohol consumption during pregnancy can result in full-blown fetal alcohol syndrome or a host of fetal alcohol effects that include a wide range of mild to severe cognitive, behavioral, and growth delays. Fetal alcohol syndrome occurs in about 1 of 750 births in the United States. Many thousands more are born with fetal alcohol effects." (Sloboda and Bukoski, p 330). In fact, the widely recognized human teratogen called alcohol has been the prime producer of FAS and the other related effects in children. Alcohol, among all the substances of abuse, is the most dangerous and serious manufacturer of neurobehavioral effects in the fetus. While the nature of the substance used in the prenatal development period has a vital role in causing Fetal Alcohol Syndrome, it is more imperative to analyze the timing of the exposure alcohol as it is a major variable influencing FAS. As mentioned before, one of the most vital variables predicting the effect of the consumption of alcohol during the prenatal development has been the timing of the exposure to the substance. Thus, the exposure of the fetus to a substance can have different types if impact when it either coincides with or misses a period of peak sensitivity to the substance. "For example, fetal exposure to alcohol, even at relatively low doses, has its greatest impact on development if it occurs early in the first trimester or at any time during the third trimester. This is because the developing fetus has different periods of peak sensitivity to alcohol." (Sloboda and Bukoski, p 330). Therefore, it is vital to relate to the timing of the exposure alcohol when the fetus is affected the most in prenatal development. The broad period of prenatal development is often divided into three periods for the sake of convenience, i.e. the pre-differentiation period, the period of the embryo, and the period of the fetus. In the total span of prenatal devel