1. ¿Por qué Air Berlin quiere hacer una IPO? The decision of Air Berlin to launch an IPO is based on three main reasons that go along with the company’s corporate strategy. The company wants to raise gross proceeds of €350 million in order to fund the growth of its aircraft fleet, to pay off debt and to invest in sustainable growth. Hereby, 50% of net proceeds (total: €290 million) will be invested into purchasing 55 new aircrafts. Air Berlin wishes to expand its fleet by Airbus 320 airplanes, which will incur economic benefits as well as enable access to a broader pool of pilots. The expansion increases Air Berlin’s growth prospects and is predicted to consolidate its position in the European airlines market. Another 10% of the fund …show more content…
If Air Berlin can use the public offering to reduce debt and become profitable as well as strengthen its positioning, there are future growth prospects and the IPO might be reasonable. For the company to grow the IPO is essential. Although growth prospects are only moderate and competition is high, we believe that the process of IPO is the right movement. Air Berlin needs to invest and therefore its is necessary to make funds available. 3. ¿Qué precio le pondrías a la acción de Air Berlin? Usá los múltiplos de sus comparables para llegar a ese valor (IMPORTANTE: justificar cuál o cuáles son los mejores comparables). In order to find a share price for Air Berlin we will first of all look at some multiples that compare the company with the industry-average or competing firms. P/E Ratio: The Price-Earnings-ratio gives an idea about the growth opportunities of a company. As to compare we used the Peer Analysis by Morgan Stanley that predicted a P/E ratio of 8.1 for 2007. Air Berlin is therefore much less valued as the competitors like Ryanair (13.6), easyJet (14.5), Southwest (19.4) or even Air Asia (73.9). The actual average of P/E ratio in air transport lies at 15.77 that does reflect Ryanair, easyJet and Southwest. Air Asia comes up with a high valuation as it was in times of high growth in 2006 and investors
Air Canada is Canada 's largest full-service airline and the largest provider of scheduled passenger services in the Canadian market, the Canada-U.S. trans-border market and in the international market to and from Canada. In 2010, Air Canada improved its reputation as one of the world’s leading international air carriers. Significant progress was made on executing and delivering on its four key priorities and this, coupled with improving economic conditions, allowed Air Canada to record operating income of $407 million in 2010, a $677 million improvement from 2009. Air Canada’s financial strategy is to continue to improve both the level and sustainability of its
Here I did selected Delta Airlines as a company for my research. This company is providing a wide range of the air traffic facilities in different parts of the world. In other words we can say that there are many operational routs of this airline company and all the routes are very much beneficial. Another uniqueness of this company is a verity of airplanes including airbuses and jumbo etc. At this time the company owns more than seven hundred different aeroplanes of different size and capacity. Delta Airline is providing facilities to the people of the world to more from one place to another by air. The services and
While it is difficult, to some extent, to evaluate the success of a merger that is only just now entering its final implementation phases, it is known that the objective of that merger was to use the larger route network to attract more business, and that the combined airline would also extract cost savings as the result of increased operational efficiency. The airline had struggled in 2009, with its sales declining, but it recovered in 2010 and 2011. Sales last year were $33.678 billion, up from $21.068 billion the year before. In the past two years, the company has turned a profit, going from $253 million in net income in FY2010 to $840 million in net income in FY2011. Some of this improvement may stem from the impact of the merger. However, the airline industry is highly cyclical, and the past two years have represented economic improvement. Likewise, the losses the company faced in FY2008 and FY2009 were as much the result of the economic downturn as they were internal business factors.
The situation of the U.S airlines has been affected by a number of factors through time and is not a secret that has been passed by moments difficult, especially in the economic part. One of these factors were the terrorist’s attacks of 911. No other event in history has changed the way of doing business that the fateful events of September 11, 2001. Apart from the significant human loss, the millionaire impact to the economy of New York and in the United States and multi-million dollar expenditure associated with the global war against terrorism, attacks on the World Trade Center (World Trade Center or WTC) in New York and the Pentagon trembled the authority of the United States, at a time when it was going through a recession. All this made
* Set goals for 2016 to be 1 out of 5 most successful airlines in the world
This proposal was proposed to provide different possible business investment ideas for the board of directors of Eagle Nest’s and it was prepared by Weng Hong Hoh, Kang Yi, Nicklas Ivarsson and Monneb Aziz. In particular, this proposal indicates the issues of long-term growth for the company as well as to offer the preferred option for investment. The purpose of this document is to:
American Airlines (AAL) reached record earnings during the third quarter of 2015. This release gave sight of reaching the company’s desired goals. Lindenberger (2015) states, “If [becoming the greatest airline in the world] sounds like it’s going to take a whole lot of money, the company’s release on Friday of record earnings for the third quarter could do much to make such world-beating ambitions sound feasible, anyway.” Even with the record performance, AAL’s stock prices have not increased. According to Schmidt (2015 Oct), it is because the market and investors are concerned about the debt levels.
Founded in 1960, Sealed Air grew rapidly during its first twenty-five years because many products had strong patent protection. By the mid-1980s, the patent of air cellular had run out and competition was getting fiercer. The managers started to pay attention to manufacturing. Therefore, the Sealed Air launched World Class Manufacturing to promote manufacturing performance. After a year, this program had revitalized the company and enabled Sealed Air to have $54 million in cash. Because there was no profitable project available, Sealed Air managers decided to use Leveraged Recapitalizations to provide large payout to
I would not choose Boeing as an aspirant company because they build large commercial airplanes and focus on a different customer base. Their focus is shifted towards mass transport, as well as NASA and military contracts. Thus, comparing these two companies isn’t the best way to see how S&S Air is doing in comparison to Boeing.
Financial Statement Analysis “Mom, I want to purchase stocks in the Boeing by my money.” My son, a 12-year-old boy, told me a few month ago. His dream job is a pilot, and he has been a big fan of airplanes. The first thing he would like to do in the U. S. was to join the Boeing factory tour, and his most favorite museum is The Flight in Seattle, sponsored by the Boeing. Four years have passed since we have been in Portland, but it seems that his interest has never changed.
This report provides a detailed strategic analysis of Porter Airlines. Information herein was gathered from primary sources including an investor interview and Porter‘s IPO prospectus, as well as secondary sources such as newspaper articles and opponent campaigns. Using all the information at hand, an in depth analysis of the Porter Airlines‘ current situation and strategy is presented.
The United States economy has been able to grow steadily after the 200 recessionand because of this, most businesses have been able to also grow effectively. The airline should therefore invest heavily in refurbishing its aircrafts and also investing in projects that will attract employees. To fully take advantage of this project, the United airline should embrace good marketing startegies and also provide competitive prices to its customers.
Allegaint Airlines is currently the third most profitable airline in the world; second in the United States. Allegiant, oddly enough, is an Ultra Low Cost Carrier (ULCC) that has a 3 month average stock price of $122.18 with a last close of $203.07. This is surprising when comparing this ULCC to legacy stock prices and other ULCC’s. Delta’s last close was $43.94, American was $38.62, and Spirt (the world’s most profitable airline) $50.64. Allegiant airlines stock price is over four times higher than the world’s most profitable airline (Spirit).
From the humble financial portfolio as a crop dusting outfit in the mid twentieth century, to the multi-billion dollar portfolio of a major airline in the twenty first century, Delta Air Lines has risen as a successful business. The airline industry is directly affected by outside economic conditions and is also cyclical in nature. These factors make it very difficult for airlines to make predictions to stay financially afloat. Delta has ridden the bumpy path of the last twenty years and managed to survive. In the past twenty years there has been many events that
The four cost components of the airline industry – fuel, landing fees, aircraft leasing and taxes - has made operating Lucky Air in a productive manner a constant challenge. Even though the company has a high competitive advantage being linked to Hainan Airlines, it still needed to upgrade its business strategy on a regular basis to ensure maintaining the lead they had over the other airlines. The company like all its counterparts face a myriad of restraints including heavily regulated governmental laws, limitation to price reduction, a low potential for rapid expansion due to government restrictions and heavy taxes.