Trends and developments in the airline industry - 10283 Words

Table of Content 1 Introduction ............................................................................................... 1 2 What are the characteristics of the airline industry? ................................. 2 3 Which were the most important trends and developments in the airline industries’ past shaping the current future? .............................................. 4 4 Which trends and developments can be identified in the current airline industry that will shape its future? ........................................................... 10 5 Conclusion .............................................................................................. 19 REFERENCES†¦show more content†¦Closely linked to economy - The airline industry can be described as highly cyclical since it has a high sensitivity to the economic cycle (Doganis, 2006). The profit margins of the airline industry are rising and falling in accordance with the World’s economic growth which again is impacted by unforeseen factors like a crisis (see appendix I). So demand for air traffic decreases during times of economic distress or simply when the growth slows down. This causes overcapacity and therefore lower fares and yields. The effects of the change in the industry, however, might show lagged in time. Also the factor causing the industry’s downturn can intensify or lengthen it (Doganis, 2006). High fixed costs and marginal profitability - Also characterizing features of the airline industry are the generally low profit margins and high fixed costs. The fixed costs manly results from personnel and fuel. The low profit margins arise from the circumstance that there is no significant variation between the expenses of an aircraft flight and the number of carried passengers. Therefore already a small change in passenger numbers can negatively impact the financial result (Doganis, 2006). Dependence on oil prices - As already mentioned the fuel prices are one of the two greatest fixed costs in the airline industry. As the aviation fuel price is closely linked to the oil price, theShow MoreRelatedTrend Line Of The Airline Industry922 Words   |  4 PagesTrend Line The trend line is a indicator that gives an idea about long-run performance of an industry. Key trend area to look into in terms of the airline industry is cost. The airline industry is very sensitive to cost such as fuel, labor, and borrowing costs. Fuel prices tend to fluctuate on a monthly basis. It is very important to pay close attention to these costs. Trend line such as seating space is important in the airline industry; travellers strive for convenience at all times. These daysRead MoreStrategic Management: Crafting and Executing Strategy1252 Words   |  5 Pagespurpose of this report is to present the importance of strategic planning for a business organization. The industry chosen for this report is airline industry and the company name is Asian Airlines. The report starts with a strong argument supporting why and how a strategic plan is important for an airline business and proceeds by discussing the mission and vision statement for Asian Airlines. The next section establishes five key objectives for the company encompassing operational, financial, andRead MoreStrategic Profile Of The Boeing Corporation1352 Words   |  6 Pageswas established in 1916 by William Boeing in the city of Seattle, Washington. Boeing has become one of the world’s biggest manufacturers when it comes to military and commercial planes and pa rts. There are two major corporations within the aircraft industry that are big competitors and share a great rivalry with each other and they are the Boeing and Airbus Corporations. The corporations have been competing with each other for many years when it comes to finding potential contracts for their airplaneRead MoreAirline Industry Is Poor At Earning Its Cost Of Capital1496 Words   |  6 Pagescapabilities around the globe, and have deep expertise in various industries, especially in aviation travel. The lecture of â€Å"Global Aviation Trends†, which was presented by Mr Simon Barrett from L.E.K, and some issues are pointed it out for the future of the airline industry and the impact on airports. This report will give four issues’ critical eluviation of Mr Simon suggested in the lecture. The first issue is airline industry is poor at earning its cost of capital. 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By analysing those elements stated above, it is likely that the higherRead MoreOrganizational Competitive Strategies-Porters Five Forces Model (AIR ASIA)763 Words   |  4 Pages in this assignment, can be used to access the competitiveness of the airlines industry. It can review the competition within the industry plus checks for threat from outside. Bargaining power of supplier-High- In every industry, there has to be someone to play the role of a supplier. It is important to know the power of the supplier as it will affect the industry. There are only two main suppliers in the airline industry, Airbus and Boeing, thus there isn’t much of an open option. Not forgettingRead MoreThe Plan For Aviation And Aerospace Industry1499 Words   |  6 PagesBackground The aviation and aerospace is one promising front in terms of careers and opportunities. Just like any industries in the 21st Century, aviation and aerospace industry is a complex one that requires skilled labor in all of its ranks. The demand for the various job positions in the industry is motivated by both inadequate skilled personnel and the rapidly increasing demand for the airline transport. From the beginning, aviation opportunities were believed to be only piloting, engineering, and machineRead MoreSouthwest Airlines And The Airline Industry946 Words   |  4 PagesExecutive Summary Southwest Airlines is a competitor in the airline industry who models themselves as a low fare company who cares about people. These two aspects are that backbone to their business. It is what sets them apart from their major competitors, such as Delta/Northwest, Continental/United, JetBlue, and Allegiant. Government regulation has allowed for more travel due to deregulation. This means there are more consumers than ever entering the industry. As more consumers enter the market

Essay on Greatest Anatomist - 2121 Words

Leonardo Da Vinci is famous as a painter, sculptor and inventor. In reality he was so much more, with the range of topics in his arsenal of knowledge being anatomy, zoology, botany, geology, optics, aerodynamics and hydrodynamics to name a few. He did play a large role in the development of knowledge about anatomy and the human body. He was one of the greatest anatomists of his time, although unrecognized for it during his lifetime. Anatomical studies were primarily for the purpose of better depiction of the human body and presumably went no further than a study of the superficial structures. Da Vinci’s acquaintance with anatomy in the beginning would be that of the artist, and it must be remembered that his fame was gained primarily as†¦show more content†¦Neither of these matters can an answer be given to but it is suggested that he was given opportunities in the Ospedale Maggiore as well as the Collegio dei Nobili Fisici, the chief medical school of the city. (Ochenkowski, 199) The earliest anatomical drawings by Leonardo are attributed to 1487. On the basis of these drawings certain facts become manifest. It is apparent that his knowledge of anatomy was what he had acquired by reading traditional writers such as Avicenna and Mundinus, by some animal dissection and by surface inspection of the living human. (Morley, 554) With his return to Florence Leonardo again took up his anatomical studies, and it appears that for the first time he had access to a reasonably large amount of dissection material, obtained at the Hospital of Santa Maria Nuova. As the dates of his drawings indicate, he had further dissection specimens available to him, although whether he during this Florentine period ever became the possessor of an entire cadaver there is no certainty. At the beginning of this period he was still an amateur in the anatomical discipline, and his remarkable observations emphasized his genius. It is wondered how much dissection Da Vinci actually did and despite his remarkable observations of arteriosclerosis, indicative of close observation of the arterial system,Show MoreRelatedLeonardo Da Vinci Is Famous As A Painter, Sculptor And1213 Words   |  5 Pagesof topics in his arsenal of knowledge being anatomy, zoology, botany, geology, optics, aerodynamics and hydrodynamics to name a few. He did play a large role in the development of knowledge about anatomy and the human body. He was one of the greatest anatomists of his time, although unrecognized for it during his lifetime. Anatomical studies were primarily for the purpose of better depiction of the human body and presumably went no further than a study of the superficial structures. Da Vinci’s acquaintanceRead MoreThe Life and Accomplishments of Leonardo da Vinci Essay775 Words   |  4 Pagesyoung mistress named Caterina. He is famously recognised for his magnificient paintings, the Mona Lisa and The Last Supper. 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Principles of Corporate Finance 3rd Edition

Question: Describe about the Principles of Corporate Finance 3rd Edition? Answer: Complete the following table by inserting your responses, in at least 30 words to the questions. Cite any sources you use. Define the time value of money. The central idea of time value of money is that the money in the present is dearer than money in the future. This is primarily due to the fact that interest can be earned on money (Brealey, Myers Allen, 2008). Provide a real-world example for the time value of money. Suppose I purchase a car on monthly installments. The vendor typically charges me some interest and thus I have to pay more amount in totality than I would have to if I paid the whole amount at one go today. Thus the incremental interest is due to the time value of money. Why is time such an important factor in financial matters? This is an important aspect in financial matter since there is an opportunity cost involved in terms of interest that could be earned on money and thus it needs to be evaluated whether adequate compensation is being given for this or not. How would you use the time value of money to your financial benefit? This concept would be utilized for financial benefits by ensuring that the returns earned on the investment should exceed the inherent opportunity cost due to time value of money (Brealey, Myers Allen, 2008). Part II: Complete the following table by calculating the ratios. Present Value Amount Compounding period Rate of interest Present value $150,000 Annual 6% for 10 years $ 83,759.22 $85,000 Annual 4% for 15 years $ 47,197.48 Internal Rate of Return Initial cost of investment Periods of useful life Estimated annual net cash inflow generated Look-up table value Rate of interest $75,000 7 $14,406 8% 8% $56,000 15 $8,222 12% 12% Payback Period: Assume there are no income taxes for both scenarios. Purchase price of equipment Period of useful life Annual revenue generated per year Operating costs associated with revenue Depreciation expense per year Payback period result $550,000 10 years $100,000 $32,000 $55,000 8 years $350,000 10 years $80,500 $36,000 $35,000 7.87 years References Brealey, R., Myers, S. Allen, F. 2008, Principles of Corporate Finance 3rd edition, New York: McGraw Hill Publications

Heroes, Born or Made free essay sample

The greatest Allied air ace of World War One, Canadian Billy Bishop, comes to mind. Some anti-hero types took it upon themselves to challenge the veracity of Bishops claim of 72 kills. Subsequently, their thesis was proved incorrect and Bishops honour and his Victoria Cross were shown to have been honourably and rightly earned. Another Canadian hero and VC winner was Lieutenant Alexander Roberts Dunn for his heroism during the charge of the Light Brigade at the Battle of Balaklava, October 1854. Dunn was the first Canadian to be awarded a VC; since then, 93 others, including Bishop, have received this highly respected and much valued military honour. Perhaps, of all the military medals awarded for valour anywhere in the world, the Victoria Cross stands above all others. Of course, the world knows of Canadian John McCrae and his world-famous poem, In Flanders Fields. McCrae and his poem are front and centre annually at Cenotaphs across Canada during November 11th Remembrance Day services. Not only in Canada, but also in many Western countries McCraes In Flanders Fields is recited or sung at services to honour those who stepped forward, volunteered and in some cases, died for democracy. We are the dead. Short days ago we lived, felt dawn, saw sunset glow, loved, and were loved, and now we lie In Flanders Fields. An interesting sidebar to the Victoria Cross is that three Winnipeggers all from the same street received this high honour. It is believed to be the only street in the world to have three VC winners who lived there. The City of Winnipeg named the street Valour Road in honour of Leo Clarke, Fred Hall and Robert Shankland. The streets previous name was Pine Street. Their war was the Great War or, World War One. The Canadian Navy, too, has its heroes; among them a VC winner. In the latter stages of World War Two, RCN pilot Lieutenant Robert Hampton Gray flew his flaming aircraft into a Japanese destroyer. For his heroic action, he was awarded the VC, posthumously. At the time, Gray was serving onboard the Royal Navy aircraft carrier, HMS Formidable. More recent times have seen the Canadian Navy perform admirably under duress; and while this next part is not centred on a particular person, the hero of the piece is the ship itself and its complement. During Operation Apollo, HMCS Ottawa was tasked to patrol the Arabian Gulf region with explicit instructions to intercept any vessel sailing in those troubled waters with a view to checking its identity, examining its cargo and passengers and ascertaining its destination. The interdiction duty included boarding when and where necessary in search of contraband goods or fugitives fleeing from Iraq. Ottawa received intelligence that a ship a contact of interest was about to weigh anchor in the Arabian Gulf. The ships destination was unknown and that heightened the interest Ottawa had in the vessel. Later, it was learned that the contact of interest was M/V [motor vessel] Roaa. The Canadian warship was ordered to search for Roaa in the Straits of Hormuz, a narrow passage in the Gulf between territorial waters of Oman and Iran. For about three days, Ottawas ships company, especially the ships communications crew, queried ships passing through the Strait about their identities and voyage information. As the area is narrow and with much traffic, the querying of the ships identities and destinations was hectic. The task was formidable and exhausting. As one Ottawa sailor put it later, We were just all anxious to find the guy and get the job done. The task of identifying the passing ships was more than just hailing them and asking about their nationality. Ottawas acoustic section b ecame involved as the department tested the data collected for legitimacy. Each vessel was checked against its destination. After three days on intense interdiction duty and hundreds of checks, there was no sign of Roaa. Had she slipped the noose and sailed away unchallenged? The thought was troubling to Ottawas crews pride. Then, additional intelligence was received that indicated that the contact of interest was anchored in the approaches to a nearby port. This particular port had gained the name of The Parking Lot. There, hiding among dozens of other vessels, was M/V Roaa. The sharp on top eye of a Canadian Aurora maritime patrol aircraft had spotted the ship. Apparently, the Roaas captain had thought that if he dropped anchor and remained quiet among the many other vessels in the Parking Lot, his ship would avoid detection. Clearly, he had not considered the Canadians determination to find their prey. Now that Roaa -the needle in the haystack -had been sighted, it was important that Ottawa not give away her position to the enemy. Under cover of darkness, Ottawa slipped undetected into the area and took over surveillance from another multinational naval unit. Roaa was, after all, Ottawas target, her contact of interest. We had to weave through about 20 ships anchored close together just to find her. Those words from a member of Ottawas crew as he related the event later. HMCS Ottawa maintained contact with Roaa all the while waiting for the contact of interest to make a move that would permit the Canadian ships naval boarding party [NBP] to move into position. In a move that would bring credit to the best of Hollywood, Ottawas helicopter moved into position. To be certain that the ship was the correct vessel the helicopters infrared camera was used. It confirmed that the suspect vessel was the Roaa. When daylight came, it was apparent that the contact of interest had changed its name and had a different national flag flying at its stern. It seemed that Ottawas persistence had paid off and that Roaas subterfuge had failed. Ottawa tracked Roaa for about 12 hours and as soon as the contact of interest moved out of territorial waters into international waters, the Canadian ship increased speed to 30 knots and slipped in alongside the other vessel, and, as darkness has fallen, illuminated her with high-power search lights. Ottawas commanding officer signalled his intentions to board Roaa, Ottawas NBP stealthily scaled the side of the foreign vessel. Before Roaas crew knew that they were being overtaken, the bridge and engine room were secured and Ottawa had control of the ship. Just like out of the movies a classic John Wayne style manoeuvre only better, because these were real Canadians carrying out their duty rather than Hollywood actors pretending to be heroes. After the boarding, one of the NBP crew was asked, What was it like to be the first person up the ladder? He replied, No real worries. Were always ready for whatever might happen. You trust the other members of your team; besides, if they [the enemy] cant see you coming, it doesnt make you a target. This heroic Canadian sailor added, At first, the crew were really stunned. But when they realized that we would take care of them, they relaxed a bit. Once upon the contact of interest, Ottawas boarding party secured the vessel before the Roaas crew could affix the anti-boarding devices lying in wait at every door, hatch and window; sheets of metal ready to be welded on at the hint of a boarding. Training and a little creativity paid off. It was a beautiful boarding. Training and a little creativity, indeed! Rather typical of Canadas naval personnel. Ready, Aye, Ready. After Roaa was in Ottawas control, a small crew from the Canadian ship took command and sailed the vessel to a detention area. The captain said, later, What an experience. It was nice change from routine ops. The interim captain added, Roaa was absolutely filthy, but, fortunately, I only had to stand on the bridge and didnt have to search through the galley or the heads. Eight hours was long enough. The captain sailed Roaa to a holding area in the Arabian Gulf where local authorities began a legal process. The value of this action by Ottawas crew is two-fold: One, the Canadian ships crew gained firsthand experience and an opportunity to test their readiness in this new battlefield, and two, the evidence gained offered links that might lead to the capture of bigger foe. Canadas contribution to the Arabian Gulf operations was as evidenced in the above example exemplary and put the countrys navy at the top of any list of stalwarts capable of getting on with the grunt. Unfortunately, Ottawas continued soft approach to evil tends to take away from the heroics of Canadas naval personnel as they carry out their duties. One is reminded of the Cuban Missile Crisis of October 1962 when the Soviets were intent on installing missile sites on Cuban soil. The Americans [USN] placed a naval blockade around Cuba to stop each Soviet ship suspected of carrying missiles or missile launching equipment. At the time, Ottawa refused to assist Washington. The Canadian Navy, however, saw the need and despatched several ships to join with the U. S. Navy in the blockade. This action was taken by the Canadian Navy admiral in charge without sanction by Ottawa. As it turned out, the Canadian prime minister was unaware of how the Canadian Navy had assisted the American Navy. By Ottawa being kept out of the loop, good things were able to be carried out. Had Ottawa been involved, probably a heated discussion between the politicians and their fawning bureaucrats in Ottawa and the Navy would still be underway, four decades later. Let the Navy get on with the grunt and good things will happen; keep Ottawa out of the loop and let the greater good over the lesser evil prevail. Heroes; are they born or are they made? Do they rise to unexpected heights because of circumstances or because of fate? [All quotes are from Anatomy of a boarding, a national defence current operations article. ]