FINANCIAL ANALYSIS ASSIGNMENT

Financial Analysis Assignment on the airline companies



Financial Analysis Assignment

Introduction

The selected industry of financial analysis assignment is airline industry. The airline industry has known for several years of profound economic and technological change, both internationally and nationally. Accidents, changes in oil prices are factors that affect this sector. So these are weakened by these companies setbacks that confront the economic crisis that began in 2008. In 2009, world air traffic is down 8% compared to 2008 according to IATA (International Air Transport Association) and the majority of airlines are now experiencing deficits. Customers are less likely to travel because for the first time since 2001, there was a decline in passenger traffic by about 3%, after growth of only 2% in 2008. This is felt mostly on the sale of tickets in first and business classes. For example, Air France-KLM posted for the first quarters of 2009, a decrease of 20.5% of its turnover from the previous year. This is the backlash of the economic crisis and soaring oil prices. In addition, competition became more intense with the development of low cost carriers in recent years. Air France-KLM still maintains its leading position in European aviation. On this basis, recruitment in 2009 is seen falling. Indeed, Apec plans to hire about 2,200 executives this year, while there had been 2600 in 2008 and 3300 in 2007. Executives with experience but new graduates are sought after by companies. It is interesting that the medium has, among its employees, 27% of managers and engineers. So a domain that recruits people with high qualifications: about 10% of vacancies are for engineers and a significant share of employment is attributed to senior technicians.

In factories and manufacturing facilities, workers, who represent 24% of staff, are also very skilled. They carry trades as welders, electricians, boilermakers, or painter. Their courses range from the Cape to the BTS.

For engineers, they come in equal proportion of schools such as ENSMA or university courses in computer science, mechanics, electronics, etc. Recruitment of drivers following conditions: despite a very demanding training, employment is far from guaranteed. Since the second quarter of 2008, job prospects are fairly limited. But all the fields do not recruit the same way: jobs are primarily towards research and development, as well as in technical services: the two poles accounted for 68% of jobs in 2008. Despite this bleak picture, aviation seems to have a future better in the years to come.

The selected companies for financial analysis are as follows:

1. British Airways plc

2. EasyJet plc

3. Ryanair Holding plc

4. Skywest Airlines ltd

Discussion

British Airways has decided to attack his two main competitors, the low cost airline Ryanair and EasyJet, as communicating on price transparency displayed by the companies.

"With British Airways, the price you see is the price you pay. You are assured that there will be no additional charges by choosing your seat 24 hours before departure, saving your luggage or a drink during the ...