European Airline Industry
EUROPEAN AIRLINES: IS THIS THE TROUGH?
IS THIS THE TROUGH?
AN ANALYSIS OF
EUROPEAN AIRLINE INDUSTRY
PRERNA GARG 08BSHYD0582
(CLASS OF 2010)
A Report Submitted In Partial Fulfillment of the Requirements of MBA Program Of IBS, Hyderabad
Distribution List:
MR. ACHAL KUMAR
ASTT. VICE PRESIDENT GLOBAL BANKING AND MARKET RESEARCH, HSBC BANGALORE
Prof. PARAMITA MALAKAR
Faculty Guide IBS Bangalore
The summer intern who prepared this report certifies that the views 1 expressed herein reflect his/her personal views about the subject matter and shall not be construed as the views of HSBC. No investment decision shall be made on the basis of the information available in this report.
EUROPEAN AIRLINES: IS THIS THE TROUGH?
Authorization
I hereby declare that my project entitled “IS this the Trough- An Analysis of European Airline Industry”, submitted to ICFAI Business School in partial fulfillment of the requirements for the award of the degree of Masters in Business Administration, is a record of the original work done by me under the guidance of Prof. Paramita Malakar during my period of study in School of Management (ICFAI Business School ), Hyderabad. I also declare that this project is the standalone proof of my own effort and has not been submitted to any other university or institute for the award of any diploma or degree.
Place: Bangalore
Date: May 21, 2009 (Prerna)
The summer intern who prepared this report certifies that the views 2 expressed herein reflect his/her personal views about the subject matter and shall not be construed as the views of HSBC. No investment decision shall be made on the basis of the information available in this report.
EUROPEAN AIRLINES: IS THIS THE TROUGH?
Acknowledgement
As a part of curriculum at ICFAI Business School, the ‘Summer Internship Program’ aims at overall development of the students by providing them an opportunity to gain corporate exposure and space to apply their theoretical
IS THIS THE TROUGH?
AN ANALYSIS OF
EUROPEAN AIRLINE INDUSTRY
PRERNA GARG 08BSHYD0582
(CLASS OF 2010)
A Report Submitted In Partial Fulfillment of the Requirements of MBA Program Of IBS, Hyderabad
Distribution List:
MR. ACHAL KUMAR
ASTT. VICE PRESIDENT GLOBAL BANKING AND MARKET RESEARCH, HSBC BANGALORE
Prof. PARAMITA MALAKAR
Faculty Guide IBS Bangalore
The summer intern who prepared this report certifies that the views 1 expressed herein reflect his/her personal views about the subject matter and shall not be construed as the views of HSBC. No investment decision shall be made on the basis of the information available in this report.
EUROPEAN AIRLINES: IS THIS THE TROUGH?
Authorization
I hereby declare that my project entitled “IS this the Trough- An Analysis of European Airline Industry”, submitted to ICFAI Business School in partial fulfillment of the requirements for the award of the degree of Masters in Business Administration, is a record of the original work done by me under the guidance of Prof. Paramita Malakar during my period of study in School of Management (ICFAI Business School ), Hyderabad. I also declare that this project is the standalone proof of my own effort and has not been submitted to any other university or institute for the award of any diploma or degree.
Place: Bangalore
Date: May 21, 2009 (Prerna)
The summer intern who prepared this report certifies that the views 2 expressed herein reflect his/her personal views about the subject matter and shall not be construed as the views of HSBC. No investment decision shall be made on the basis of the information available in this report.
EUROPEAN AIRLINES: IS THIS THE TROUGH?
Acknowledgement
As a part of curriculum at ICFAI Business School, the ‘Summer Internship Program’ aims at overall development of the students by providing them an opportunity to gain corporate exposure and space to apply their theoretical
Bibliography: http://www.aea.be/ http://files.aea.be/RIG/Economics/DL/SI_2007Maypub.pdf http://www.iata.org/index.htm http://www.elfaa.com/ http://www. PQ Airways.com/site/EN/about.php?page=About http://www.RS Airways.com/en/Investor/investorrelations_introduction.html http://www.XYEF Airways-finance.com/financial-publications.html http://reports.AB Airways.com/2008/ar/servicepages/welcome.html http://reports.AB Airways.com/2008/ar/servicepages/welcome.html http://www.bashares.com/ http://www.bashares.com/phoenix.zhtml?c=69499&p=IROL-index http://XYEF Airways-iday.momentys.com/ http://www.eurocontrol.int/corporate/gallery/content/ The summer intern who prepared this report certifies that the views 79 expressed herein reflect his/her personal views about the subject matter and shall not be construed as the views of HSBC. No investment decision shall be made on the basis of the information available in this report. EUROPEAN AIRLINES: IS THIS THE TROUGH? 16. Glossary AEA: Association of European Airlines Average fare: Passenger and ancillary revenue divided by passengers. Available seat kilometers (ASK):Seats flown multiplied by the number of kilometers flown. ATK: Available tonne kilometer Cost per ASK: Revenue less profit before tax, divided by available seat kilometers. Cost per seat: Revenue less profit before tax, divided by seats flown. Cost per seat, excluding fuel: Revenue, less profit before tax, plus fuel costs, divided by seats flown. IATA: The International Air Transport Association is an international industry trade group of airlines headquartered in Montreal, Quebec, Canada. The organization represents 230 airlines, comprising 94% of scheduled international air traffic. Load factor Number of passengers as a percentage of number of seats flown. Passengers Number of earned seats flown. Earned seats comprise seats sold to passengers (including no shows), Seats provided for promotional purposes and seats provided to staff for business travel. EBITDAR Earnings before interest, taxes, depreciation, amortization, dry lease and long-term wet lease costs, and the share of profit after tax of associates. Revenue passenger kilometers (RPK): Number of passengers multiplied by the number of kilometers those passengers were flown. Revenue per ASK: Revenue divided by available seat kilometers. Revenue per seat: Revenue divided by seats flown. The summer intern who prepared this report certifies that the views 80 expressed herein reflect his/her personal views about the subject matter and shall not be construed as the views of HSBC. No investment decision shall be made on the basis of the information available in this report.