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S10E19: McKinsey Airline Industry Case Interview Example

Strategy Simplified

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The Negative $100 Million Net Income for the JED Engine

On the JED engine, it's negative $900 million. So I'm just going to subtract that from the net income. And then for the properly division, I'm going to subtract $10 million from $30 million. So if that gives me $20 million. Oh, sorry. On the J ED engine, you said economic profit is $20million.Yeah, yeah, you're right. Yeah, it was negative $100 million and then I added $20 million to that. So that should be negative $120. Great. What insights and potential hypotheses do you see?

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