An evaluation is required as to whether the entity is acting as a principal or an agent. Which one of the following statements is reasonable?
UpHigh Inc. provides a right to fly (i.e., a plane ticket) to Mrs. and Miss. Madden from Perth to Buenos Aires, with a Air Bound Inc. connecting flight in Auckland. UpHigh Inc. must consider the principal indicators to determine whether it is a principal or an agent for the connecting flight.
On Time Airways Ltd. provides a right to fly (i.e., a plane ticket) to Miss. Lee from Orlando to Melbourne, with a Aviators Inc. connecting flight in San Francisco. On Time Airways Ltd. does not control the connecting flight with Aviators Inc. therefore On Time Airways Ltd. is an agent for the connecting flight.
Honest Air Inc. provides a right to fly (i.e., a plane ticket) to Ms. Marzillo from Sydney to Chicago, with a US Flights connecting flight in San Diego. Honest Air Inc. controls the plane ticket therefore it is a principal for the entire journey, in spite of the fact that it is using another airline for part of the journey.
Always Air Inc. provides a right to fly (i.e., a plane ticket) Mr. Sanchez from Johannesburg to Edinburgh, with a Happy Heights Air Ltd. connecting flight in Dubai. Always Air Inc. is flying only one of the planes therefore it is only a principal for its own flight because it only controls its own flight.