USAirways Experienced Huge Losses for Several Years in the 1990s,yet

question 97

Essay

U.S.Airways experienced huge losses for several years in the 1990s,yet it continued to operate its fleets.Why didn't U.S.Airways shut down its operations to avoid the losses?

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, particularly its liquidity level over a defined period.

Capital Budgeting

The process by which investors decide on the long-term investments of a company, such as new machinery, replacement machinery, new products, and research development projects.

Straight-Line Depreciation

A method of allocating the cost of an asset evenly over its useful life, resulting in a constant annual expense.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, important for assessing liquidity, flexibility, and overall financial health.