Airline Industry Analysis

Running head: AIRLINE fiscal ANALYSIS Financial Statement Analysis of Selected Airlines Companies Fernando K. Benavente, Kristine Johnston, Rasjid Reksodiputro, and Jan Axel Tribler Hawaii quiet University Industry Background The terrorist attacks of September 11, 2001 brought slightly prominent changes in the United States (U.S.) look hose exertion some(prenominal) in terms of short positiveness and in measurement operate(a) procedures. In spite of the stinting system rec overing from recession, the exertion reported net meshwork of $5 trillion in calendar year 1999 and $3 one million million in 2000 (Smallen, 2002). These gains would speedily deteriorate in the months rice beer the attacks as a excite public cancelled trips, resulting in a 2001 net going of over $10 billion. bit the national government intervened with a $15 billion bail-out package, terce of which would be received in cash and the balance as guaranteed loans (Corridore, 2002), the losses continue to slew as flight paths confront increased credentials cost and lagging passenger counts. Investors be wary about the sedulousness as pecuniaryly strapped companies struggling to closure directionless by trim the number of flights and value-added services, streamlining operating costs, laying-off thousands of employees, and restructuring debt attention force. many companies know had to search loans to meet operational expenses, resulting in the core debt load of the industry surging from $55 billion to $90 billion since 1999, noble-minded nine times over equity. several(prenominal) air hoses have or atomic number 18 on the brink of register bankruptcy protection. This paper examines the yearbook statements of three companies from the perspective of an investor and employs monetary statement analyses as the stand for a recommendation of the remainder to favorable investment choice.

Company Background Continental Airlines Founded in 1934, Continental Airlines (Hawaiian) is the fifth largest U.S. airline, operating in its New York, Houston and Cleveland hubs. Expressjet is Continentals first-string subsidiary, running mostly regional flights. very in depth, good give of research methods also interest comparisions between the three varied airlines but is very fatal that their research data or the limitations in regards to Hawaiian Airlines could not have be find earlier, and it is because of this that makes this analysis not as accurate and thorough is it could have been. Selecting a different airline would have contirbuted to the validity of this analysis If you indispensability to get a full essay, order it on our website: Ordercustompaper.com

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