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[경영] 항공 산업 재무 분석-아메리칸 항공과 델타 항공(영문)에 대한 자료입니다.
목차
I. Introduction of the Project
II. General Descriptions of Airline Industry
III. History of the Selected two Companies
IV. The Financial Statement Analysis
i. Introduction of the section
ii. Common-Size Analysis
iii. Comparative Analysis
iv. Ratio Analysis
V. Summary of the Project
VI. Recommendations
References & Appendix
본문내용
I. Introduction of the Project
i. The reasons for selecting companies
For this project, our team has chosen two major airline companies in the United States which are American Airlines and Delta Airlines.
Since 2000, in airline industry, there were many kinds of market environment’s changes which are related to the world economic crisis, the sharp rise of oil price and the threat of terrorism. It has brought low cost Carriers (LCCs) to the market, they have grown seriously fast.
Therefore, full service carriers (FSCs) have started undergoing a crisis caused by them and losing their customers a lot. In the United States, since few years ago, LCCs have grown in the market and started capturing a lot of market shares. Then, by selling low-price-tickets or by expanding their air routes widely, LCCs started threatening FSCs a lot. In the result, the market share of LCCs have been increasing incredibly, so FSCs such as American Airlines or Delta had to undertake all the losses had caused.
According to the Korean Travel Times, especially in 2010, there had been high-stakes competition between all the airline companies in the states. They all had implemented unreasonable business policy like cutting price in half or issuing comp tickets, in order to attract passengers as much as possible. They generally had offered people to get the maximum discount rate of 50% of the original price which was extremely risky for them. This policy is come from the quotation “The best solution is a cash flow to increase market share and to be funded daily. It is better to sell more tickets on discount rate than not to sell anything.” However, this was just suicidal for all the companies participated in this situation. In addition to that, the president of one carrier in the States said that a cash flow from its operations won’t meet liquidity needs and that it could run out of cash before year’s end.
Furthermore, FSCs have been spoiled by the increase of fuel cost which takes a big share of their operational cost and the decrease of the number of frequent flyers or long-distance customers.