(ii) High value products manufactured by the firm as well as raw materials
utilized get degraded if kept in open atmosphere for a long time. The
hired helicopter usually arrived late and the pilot often showed
indifference to the gravity of problem which the company could ill afford.
With its own helicopter, the company can transport materials freely as and
when required, with greater speed and higher efficiency.
(iii) ‘Pawan Hans’ may refuse the use of its helicopter in some perceived
dangerous areas on the hills (in spite of all assurance from Ranmax). This
may lead to non-availability of raw material and hence adversely affect the
business of the firm. With its own helicopter, the company can carefully
plan to carry out such operations too.
(Source: International Financial Management by Professors P.K.Jain, Josette Peyrard and
Surendra.S.Yadav)