...Financial Reporting and Analysis: Case Financial Analysis of British Airways  Submitted To: Submitted by: DATE: 27th December 2009 CONTENTS Introduction Page. 3 History Page. 3 Board of Directors Page. 3 Ratio Analysis Page. 4 - 13 Conclusion Page. 14 Introduction British Airways plc or BA is the flag carrier airline of the United Kingdom. BA has its headquarters in Waterside near its main hub at London Heathrow Airport and is the largest airline in the UK based on fleet size, international flights and international destinations. Its second hub is London Gatwick Airport. British Airways has discontinued all direct overseas flights from UK airports other than Heathrow, Gatwick and London City Airport. BA's UK passengers originating at non-London airports must now connect via London or use other airlines with direct services. History British Airways (BA) was created in 1972, when the British Overseas Airways Corporation (BOAC) and British European Airways Corporation (BEA) managements were combined under the newly formed British Airways Board. This effectively made British Airways into the national airline for the United Kingdom...
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...British Airways Financial Analysis Introduction In this assignment I shall be composing a report which details my confidential analysis of a company based in the United Kingdom; in this model the airline business British Airways. The main aims of this report are to assess whether BA has contemporarily behaved well enough to deserve financial disbursement and to describe in detail why or why not I would admonish it for akin. Within summarize I shall combine a complete dissertation of BA’s finances and formulate ratios accounted through the application of components such as company effectiveness, disbursement aptness and fluidity. The detecting from these shall be approximated through the application of the spread sheets and graphs. In abridged the overall contents of this report are thus: business summary, Accounting adages, research of Ratios, Competition analogies, other analyses and completely the Recommendation and Conclusion. BA began in 1974 as a junction between the two biggest UK authority owned airlines of the period; the British European Airways business and British Overseas Airways Corporation, as well as two smaller zone airlines, namely the Welsh Cambrian Airways and North East Airlines of Northumberland. In 1987 the government, having been a nationalised business since its beginning twelve ages preceding, privatised BA. In 2008 it was published that BA was developing to relate with the Spanish airline Iberia within the next two years, a choice which would...
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...2. Stock price data and analysis 7. Daily stock prices 8. Comparison with market and sector indexes 9. Dividends policy 10. Investment magazines reports 11. Five selected new facts 3. Financial information 12. Capital structure 13. Liquidity and solvency analysis 14. Beta coefficient and cost of equity 15. Discounted cash flow analysis and implication of fundings 4. Recommendation ------------------------------------------------- 1. COMPANY PROFILE 1.1 Core activities MISSION: "To be the leading international airlines group in future industry consolidation on a regional and a global scale" International Airlines Group (IAG) is one of the world's largest airline groups: with 377 aircraft and an average of 69 million passengers each year flying to 230 different destinations, IAG is the third- largest based in Europe and the sixth in the world. Formed in January 2011 as a result of the merger between British Airways and Iberia, it is a Spanish registered company whose shares are traded on the London and Spanish Stock Exchanges and with its head office in London (UK). Active in the airlines and transportation service sector, IAG is also a major conveyors of air - cargo serving 350 destinations across 80 countries. Following the initial merger between British Airways and Iberia, IAG completed its first acquisition in 2012 with bmi being integrated into British Airways. As an international group...
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...Journal of Financial Economics 43 (1997) 275-298 Privatization and efficiency: Industry effects of the sale of British Airways Catherine Eckel, Doug Eckel, Vijay SingaP Virginia Pohechuic lrrrliarv (Received ad Apill!?95; Swe Wm. final v&on &c&q. received VA 2UW. July US.4 1996) We analyze the etkt 04 privatization on the performance of British Airways by examining the privatization’s impa on airfares and competitors’ stock priax We find that stodc prim of U.S. annpetil9rs fell a sigoiticant 7% up00 British Airways’ privatb tion. imply@ expectation afa more annpetitive British Airways Closcx rivals d British Aimarn~agcPlcrdrcpinstoclrpiccthanmonctiwntrivakFurthcr. airfares in markets send by British Airways kll sigdcantly upon pcivatizatioo. The results suggest that a change from gov-mamm t to private ownaship improves economic __ -Ker nxmfx IEL Privatization; cfass@ctuionz G32; Ownership; L3k G38; Airlines Eritisb Airways L93 When a firm is privatiz& several factors change ownership changes from the government to private simultaneously. hands. !kcond, Firs4 the the firm’s --.. ._- .--.-l c orqmdmg author. This paper iu.5 bcnditai fran helpful fx3inmmI.s and kalbask from workshop participeDts 81 the Unbwsity d Arizwm, University of North Cardina at Chapel fJill. lad Virginia Pdytbnic Institute and Sate University. We agqxbate the ax~.~ructivc su~kms of Jobn Chahuax Lhvc Dmis Diane Desk. Rob Hansat. Murali Jaganaatban, Greg Kadkc. Dan Lem, Nancy...
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...ASSIGNMENT COVER SHEET Course Name: | Edexcel BTEC Level 5 HND Business and Management | Assignment Name: | Managing Financial Resources and Decisions | Section 1: Understanding the Source of Finance Available to Business IDENTIFY THE SOURCES OF FINANCE AVAILABLE TO BUSINESS In order to set up a business the owner or business needs money to get it going, and in cases of established businesses, keep it growing. Business owners will usually use some of their own money coupled with other sources of finance to start their business. There are several ways to acquire financing and a few of them are personal capital and borrowing from friends, borrowing from a bank, factoring, invoice discounting, leasing, hire purchase and franchising. For larger companies they have the advantage of being able to sell shares to raise capital, they can also have large investors, and being able to ‘raise capital’, they can also retain earnings in order to use the money as cash flow for further developments in the company or for a particular project (this money belongs to shareholders). Companies who are already established can retain their profits for a period of time and use this money in the future for projects or business needs, this is usually shareholder dividend and ultimately belongs to the shareholders, but the company is using it to expand or better the business. The selling of company assets is also seen as a way of raising capital, however if you are selling off your assets...
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...Ryanair Ltd. is an Irish low-cost airline headquartered in Swords, Dublin, Ireland, with its primary operational bases at Dublin and London Stansted Airports. In 2013, Ryanair was both the largest European airline by scheduled passengers carried, and the busiest international airline by passenger numbers. The case study “ Dog Fight Over Europe: Ryanair (A), (B), & (C) presents the situation of April 1986 onwards when the Ryan brothers announce that their fledging Irish airline Ryanair will soon commence service between Dublin and London. For the first time, Ryanair were faced with formidable competitors such as Aer Lingus and British Airways on a major route. In the following write we will present as follows 1) Case study analysis based on literature provided in class 2) Key competencies & recommendations for future. Case Study Analysis of Ryanair European Aviation Scenario 1) Air travel become possible due to technical advancements made during World war-I which led to Emergence of small private airlines across Europe which got amalgamated and paved routs for National Flag carriers serving mainly from national capitals to other capital cities and colonies. National Flag carriers were Gradually owned and subsidized by respective National governments. 2) After World war II, air travel become widely economical. America emerged as dominant country in Air-Travel business. Governements on Europe resorted to bilateral & multilateral Agreements, Pooling...
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...British Airways 2008/09 Annual Report and Accounts / 75 Financial statements Overview Our business Corporate governance Financial statements 76 / British Airways 2008/09 Annual Report and Accounts Independent auditor’s report to the members of British Airways Plc We have audited the Group and Parent Company financial statements (the ‘financial statements’) of British Airways Plc for the year ended March 31, 2009, which comprise the Group consolidated income statement, the Group and Parent Company balance sheets, the Group and Parent Company cash flow statements, the Group and Parent Company statements of changes in equity and the related notes 1 to 39. These financial statements have been prepared under the accounting policies set out therein. We have also audited the information in the directors’ remuneration report that is described as having been audited. This report is made solely to the Company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors The directors’ responsibilities for...
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... * Strategy 4 * Market Environment Analysis * Carbon Tax 4 * Tourism 5 * Industry Outlook 5 * SWOT Analysis 6 * Financial Analysis * Profitability 9 * Liquidity 16 * Solvency 17 * Comparison With Virgin Australia * Profitability 19 * Liquidity 20 * Solvency 21 * Conclusion and Recommendation 22 Reference 23 Appendix Calculation spreadsheet – Qantas 27 Calculation spreadsheet – Virgin Australia 28 * Executive Summary This report is prepared for the purpose of evaluating a potential equity investment in Qantas Airways Limited. The analysis is mainly conducted from two different approaches, including qualitative analysis by examining the overall market environment and Qantas’ operation strategies as well as quantitative analysis of the company’s financial performance. The financial analysis is mainly focused on its profitability, liquidity and solvency and we also selected one of its major competitor Virgin Australia for comparison purpose. Overall, we have concluded that Qantas may not have a satisfying financial performance currently, however, it has great potential for growth in the future. And therefore, we expressed a ‘buy’ recommendation for Qantas Airways Limited. Company Profile Qantas Airways Limited (QAN) is the largest airline service company...
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...British Airways Plc Annual Report and Accounts Year ended 31 December 2011 Company registration number: 1777777 Contents Officers and professional advisers 1 Directors’ report and business review Business review Management review Financial review Internal controls and risk management Directors’ report 2 4 6 9 Directors’ responsibilities statement in relation to the financial statements 12 Independent auditors’ report 13 Group financial statements Group consolidated income statement Statement of other comprehensive Income Balance sheets Cash flow statements Statement of changes in equity Notes to the accounts Operating and financial statistics Fleet table Principal investments Glossary Subsidiary undertakings 14 15 16 17 18 19 75 77 78 79 80 British Airways Plc Officers and professional advisers Directors Sir Martin Broughton (Chairman) Alison Reed (Deputy Chairman) Keith Williams (Chief Executive Officer) Nick Swift (Chief Financial Officer) Andrew Crawley Frank van der Post Rafael Sánchez-Lozano Turmo Enrique Dupuy de Lôme Ken Smart Gavin Patterson Secretary Alan Buchanan Registered office Waterside PO Box 365 Harmondsworth UB7 0GB Parent company International Consolidated Airlines Group S.A. Calle Velazquez 130 Madrid, 28006 Spain Independent auditors Ernst & Young LLP 1 More London Place London SE1 2AF 1 British Airways Plc Directors’ report and business review The Directors present their annual report and the audited...
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...strategy Reinhard Fellner Wien, am 09.06.2002 C:\Users\rf\Documents\A R C H I V 311013\F 160108\B820_Strategy\TMA\TMA01\TMA01_B820rf.doc I R M E N R E I N H A R D 301109\MBA FILES Druck: 20.11.13, 22:42 REPORT ABOUT EASYJET Seite 2/53 Executive Summary Deregulation has seriously changed the environment and structure of airline industry. Out of STEP analysis I have identified the following ain issues: Deregulation will stimulate competition, but also market growth Lower prices will cause focus on costs Focus on security measures will increase costs There is no need for added values in connection with prestige Analysing the airline industry by Porter’s “Five Forces” I have stated: Big Player and/or Alliances fight a price war, often using a second brand (Buzz, etc.) Big Players have not identified and reacted on the change in environment Few structural changes to support the need of cost effectiveness und to bring them in line with new customer requirements Because of the very static picture I have supported that analysis by BCG strategic model: BCG's Strategic Enviroments Matrix Many Source of Advantage FRAGMENTED Airline Industry SPECIALIZATION 2nd brand for Budget Segment STALEMATE Budget Airlines VOLUME Few Small Size of Advantage Big Global airlines which come from the „Fragmented Segment“ with a 2nd brand try to enter direct the „volume market“ taking their costs for product differentiation with...
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...Accounts Who we are British Airways is the UK’s largest international scheduled airline. We fly our customers at convenient times to the best located airports across the world. We are one of the world’s leading global premium airlines. Our principal place of business is London with significant presence at Heathrow, Gatwick and London City. Some 20 million people live within commuting distance of these airports, on the doorstep of the City of London, the world’s biggest premium travel market. We also operate a worldwide air cargo business, largely in conjunction with our scheduled passenger services. Operating one of the most extensive international scheduled airline route networks, together with our codeshare and franchise partners, we fly to more than 300 destinations worldwide. In 2009/10, we carried nearly 32 million passengers. We support the UK economy by providing vital arteries for trade and investment, meeting the demand for business travel and leisure travel for holidays and family reunion. In 2009/10, we earned £8 billion in revenue, down 11 per cent on the previous year. Passenger traffic accounted for 87 per cent of this revenue, while 7 per cent came from cargo and 6 per cent from other activities. We carried 760,000 tonnes of cargo to destinations in Europe, the Americas and throughout the world. At the end of March 2010 we had 238 aircraft in service. British Airways 2009/10 Annual Report and Accounts 1 2 British Airways at a glance 4 Financial...
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...Executive Summary Ryanair operates as a cost leader in the European low cost carrier segment of the airline industry. As a cost leader they aim to achieve high volume sales by attracting customers with low prices. As a result of charging some of the lowest prices in the industry, Ryanair has seen growth in traffic and reported record revenues. To remain profitable the company focuses on maintaining low costs and efficient operations. The key issues facing Ryanair include how to remain profitable in light of rising fuel prices and currency exchange risk, the ability to maintain market share and growth in a segment characterized by intense competition, and whether or not it would be profitable to expand into the growing international/emerging markets and internet retailing space. In addressing these key issues, it is recommended that Costco focuses on opportunities in the internet retailing space to grow bottom and top line growth as well as increasing market share. It is also recommended that they remain committed to their low cost high inventory turnover strategy in order to continue to offer consumers the lowest prices and achieve high inventory turnover. By taking these initiating the strategies summarized above, Costco will be able to maintain their position as market leader and continue to operate profitably in the discount membership warehouse segment of the retail industry. Business Model & Strategy Ryanair operates as a cost leader in the low cost...
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...Abstract India, home to one-sixth of the world’s population, is quickly becoming one of the world’s economic engines. Its bureaucratic and outdated regulatory policies have been reformed resulting in a three-fold increase in the number of scheduled airlines and a five-fold increase in the number of aircraft operated. The largest and most popular airline in Mumbai India is Jet Airways started in 1993. Naresh Goyal (both founder and owner) still owns eighty percent of the company, and oversees all aspects of the business. This paper reviews one of the airlines, jet airways, strategic evaluation process to select the next corrective action for the airlines and also the impact on overall aviation industry. How to do a strategic evaluation? Strategic Evaluation is the final phase of Strategic management. Strategy Evaluation is as significant as strategy formulation because it throws light on the efficiency and effectiveness of the comprehensive plans in achieving the desired results. The managers can also assess the appropriateness of the current strategy in today’s dynamic world with socio-economic, political and technological innovations. The process of Strategy Evaluation consists of following steps- 1. Fixing benchmark of performance - While fixing the benchmark, strategists encounter questions such as - what benchmarks to set, how to set them and how to express them. In order to determine the benchmark performance to be set, it is essential to discover the special requirements...
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...prepare your case write-up in accordance with the syllabus or other instructions. Table of Contents Page Case: Name and Number, Bruner 5e Note Number I. C12- Best Practices—WACC No Questions II. C2- Bill Miller & Value Trust 2 III. C5- Financial Detective, 2005 Contained in Case IV. C7- Body Shop Intl* Contained in Case, but see page 3 V. C6- Krispy Kreme Doughnuts, Inc. 4 VI. C17- The Investment Detective* Contained in Case VII. C28- Intro. to Debt Policy & Value* No Questions, but review M & M Theory on debt and value of the firm. VIII. HBS Case- “Leveraged Betas and the Cost of Equity No Questions IX. C16- The Boeing 7E 7* 5 X. C26- Jet Blue Airways, IPO Valuation* 6 XI.a C35- Merton Electronics 7 XI.b C36- Carefour S. A.* 8 XI.c C44- Palamon Capital Partners* 9 XII. GM Dividend Policy Negotiation (Information to be provided by Dr. Kiss) * Note: Excel Spreadsheets containing some of the exhibits from the case are available for this case at www.mhhe.com/bruner5e FIN 620, CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions Case 2- Bill Miller & Value Trust Suggested Questions for Your Preparation of the Case. 1. How well has Value Trust performed in recent years? In making that assessment, what benchmark(s)...
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...9-106-003 REV: MAY 15, 2006 MARK T. BRADSHAW Ryanair Holdings plc Ryanair is a low-cost, low-fare airline headquartered in Dublin, Ireland, operating over 200 routes in 20 countries. The company has directly challenged the largest airlines in Europe and has built a 20-year-plus track record of incredibly strong passenger growth while progressively reducing fares. It is not unusual for one-way tickets (exclusive of taxes) to sell on Ryanair’s Web site for less than €1.00. See Exhibit 1 for an excerpt of Ryanair’s Web site, where fares between London and Stockholm, for example, are available for 19 pence (approximately US$0.33). CEO Michael O’Leary, formerly an accountant at KPMG, described the airline as follows: “Ryanair is doing in the airline industry in Europe what Ikea has done. We pile it high and sell it cheap. . . . For years flying has been the preserve of rich [people]. Now everyone can afford to fly.”1,2 Having created profitable operations in the difficult airline industry, Ryanair, as did industry analysts, likened itself to U.S. carrier Southwest Airlines, and its common stock has attracted the attention of investors in Europe and abroad. Low-Fare Airlines Historically the airline industry has been a notoriously difficult business in which to make consistent profits. Over the past several decades, low-fare airlines have been launched in an attempt to operate with lower costs, but with few exceptions, most have gone bankrupt or been swallowed up by larger...
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