Safe Wings Aviation’s Budgeting Management

Subject: Company Analysis
Pages: 2
Words: 580
Reading time:
3 min
Study level: College

Problems and Changes

Safe Wings Aviation faced various problems with managerial, leadership, and budgeting decisions. The aviation director of operations, Saucy Burbank, has an indirect management skills that involved operating informally with the pilots, crew chiefs, and flight attendants. The director of operations also despised the importance of paperwork and only enjoyed flying. It was the first problem with the Safe Wing’s Aviation that forced Phil Gibson to develop an interest in knowing him. Phil Gibson was tasked with several responsibilities that sometimes made him wonder how he could get through them. For instance, one afternoon opened a file from his drawers that included the list of vendor accounts, operating budgets, chart of accounts, detailed budget, and other charter revenue documents. It added additional tasks to his list of duties, such as being the Chief Pilot. The effect was putting his organizational skills to a test with the process of budgeting. Phil should have been assigned one role, such as exercising his MBA skills or focusing on the chief pilot duties. The other problem is the non-attractive fuel prices provided by Safe Wings due to its owner basing it on Stockton. The discounted fuel costs resulted in the downfall of the increase in logistical challenges.

Recommendations for Aircraft Management Budget

Phil should recommend Greg McCoy that maintain costs depending on the utilization at the Safe Wings Aviation. It helps to keep the records on track and proper maintenance. Phil also needs to advise Greg to perform a constant review of the progress of the year. Therefore, budgeting entails actually versus planned which is considered a standard metric. The other key thing that Greg McCoy should do regarding aircraft management budgeting is tracking and report the costs in detail (Balseiro et al., 2021).

Quantitative data

Detail Previous Annual Budget ($) Projected Annual Budget ($)
Fuel and Oil 1850
Advertising 1714
Communications 4 443

Predicted Organizational Problems at SAFE WINGS

Aircraft budgeting management provides a clear guide and commitment to the aviation budget. Failure to adhere to the budgeting recommendations is likely to bring organizational uncertainty. Aviation will face challenges in the estimation of its operations, thus causing uncertainty in cash flows. The organization is also expected to face problems with expensive allocations on the number of overhead costs allocated in various practices of the aviation organization (Aziz & Shah, 2021). The challenges will be fuel and line techs, flight operations, maintenance, aircraft management, and customer service.

Organizational Budget Process

The company’s budget process involves future income and expenditures in streamlining the operations of expenditure. The budgeting process at SVJC/SAFE WINGS includes estimating costs for salaries and wages, labor expenses, education and seminars, and fuel and oil. On the other hand, my organization performs the budget process by upgrading the budget assumptions, creating a budget package, identifying the steps available in funding, obtaining revenue forecasts, and validating bonus plans (Talmon & Faliszewski, 2019), upgrading the budget model to avoid delays that lead to glitches that are likely to affect the organization.

Additional Information

Budget is a critical area in any organization that helps in setting targets and accessible communication of priorities. It provides an excellent tool for controlling and monitoring practices in an organization through an inherent business operation guideline. Effective budgeting will set the revenues and costs that a business needs to achieve (Mirgorodskaya et al., 2017). Allocation of budgets will be helpful in the improvement of new services. Outlining expenditures will help in effective control and tracking of the spending.


Aziz, H., & Shah, N. (2021). Participatory budgeting: Models and approaches. In Pathways Between Social Science and Computational Social Science (pp. 215-236). Springer, Cham. Web.

Balseiro, S., Kim, A., Mahdian, M., & Mirrokni, V. (2021). Budget-Management Strategies in Repeated Auctions. Operations Research. Web.

Mirgorodskaya, E. O., Andreeva, L. Y., Sugarova, I. V., & Sichev, R. A. (2017). Balanced budget system: organizational and financial tools. Web.

Talmon, N., & Faliszewski, P. (2019, July). A framework for approval-based budgeting methods. In Proceedings of the AAAI Conference on Artificial Intelligence (Vol. 33, No. 01, pp. 2181-2188). Web.