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Construct a one-page document "selling" your chosen option to your existing shareholders and bondholders based on the merits of your plan, in comparison to the short-term or long-term shareholder value of rest of the alternatives.
Consider that Blue Sky Airlines has the following options:
1) The government has offered a potential "gift" to cover the incremental cost of fuel. This is an elimination of a 6% fuel excise tax as well as an interest-free $100 million gift in return for agreeing to purchase only US-manufactured aircraft over the three-year period with no reduction in aircraft cost financed by an additional debt at 10%.
2) The company has been offered a fuel-hedging program that involves a one-time investment of $10 million but guarantees a 4% annual price increase in operating costs.
3) The company has been offered a 5-year union contract for no wage increases in return for a guarantee of no reduction in jobs.
4) The company has been offered a 10% reduction in the cost of a planned $600 million aircraft order by a foreign supplier financed by debt at 10%. Alternatively the company can forego buying new aircraft but incurs a 10% higher ongoing cost in fuel and labor.
5) The company has the option to create a low-cost structure that will replace its existing labor structure. This involves taking the company to bankruptcy to void union contracts, reduces overall labor costs by 25% but involves a 40% premium in ongoing debt expense.