The Importance Of Cost-Benefit Analysis
Should Malta build a new airport, or perhaps a bridge connecting to its sister island of Gozo? Should water or health supplies be improved? Should an interconnector between Malta and Italy be built to generate more electricity, through sources located in Sicily and other regions in Europe? These are all typical questions in which Cost-Benefit Analysis plays a crucial role.
If we have to decide whether to use a particular idea from another, there is one general rule that should always be put to practice. Should the benefits of project A ultimately exceed those of the next best alternative course of action, then it must be taken into consideration as the best solution bringing along with it better results. If this rule is applied to all possible …show more content…
et al, 2001). This method differs from a financial appraisal or evaluation as it considers all the gains and losses, regardless to whom they accrue. It provides a supporting tool for collective decision making, whilst making more transparent procedures for project selection and financing decision. Some Cost-Benefit Analysis studies, such as the one being conducted in this essay, are however performed during the course of the life of a project, based on observation rather than prediction of some costs and …show more content…
41 years on, Air Malta operates a fleet of 12 aircrafts to more than 50 destinations across Europe, North Africa, as well as the Eastern Mediterranean. Over its 41 year history, the national carrier has offered transportation to over 38 million passengers to and from the Maltese Islands, and today, about 55% of tourists who visit our islands choose the National airline.
However, throughout these 41 years of success Air Malta has had to face many different challenges, and the airline’s backdrop has changed drastically throughout the years. In view of this, Air Malta has set up two important missions to serve; the socio-economic development of a nation as well as its own interests. On one hand, the airline should be committed towards the country’s economic growth, social development and international profile. On the other hand however, Air Malta as a commercial organisation, needs to be developed into a performance driven organisation that will enhance the value of shareholders as well as the value of its employees through motivation and
If we have to decide whether to use a particular idea from another, there is one general rule that should always be put to practice. Should the benefits of project A ultimately exceed those of the next best alternative course of action, then it must be taken into consideration as the best solution bringing along with it better results. If this rule is applied to all possible …show more content…
et al, 2001). This method differs from a financial appraisal or evaluation as it considers all the gains and losses, regardless to whom they accrue. It provides a supporting tool for collective decision making, whilst making more transparent procedures for project selection and financing decision. Some Cost-Benefit Analysis studies, such as the one being conducted in this essay, are however performed during the course of the life of a project, based on observation rather than prediction of some costs and …show more content…
41 years on, Air Malta operates a fleet of 12 aircrafts to more than 50 destinations across Europe, North Africa, as well as the Eastern Mediterranean. Over its 41 year history, the national carrier has offered transportation to over 38 million passengers to and from the Maltese Islands, and today, about 55% of tourists who visit our islands choose the National airline.
However, throughout these 41 years of success Air Malta has had to face many different challenges, and the airline’s backdrop has changed drastically throughout the years. In view of this, Air Malta has set up two important missions to serve; the socio-economic development of a nation as well as its own interests. On one hand, the airline should be committed towards the country’s economic growth, social development and international profile. On the other hand however, Air Malta as a commercial organisation, needs to be developed into a performance driven organisation that will enhance the value of shareholders as well as the value of its employees through motivation and