The Financial Health Of And Air Asia Essay

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

According to the statistics Southwest Airline carried more passengers than the any other US based airline since the year 2006.This statistics includes all the international and national passengers’ routes. It is estimated that it is one of the most profitable airlines in the world.

Southwest is the largest domestic carrier in the United States with the corporate headquarters located at Love Field, Texas. November 1, 2009, Southwest flew to 68 cities in 35 states, with 438 nonstop city pairs with more than 3,300 flights a day.

To combat the escalating expenses of enhanced security and diminishing supply demand, employee layoffs and service trimming were the first areas to see cutbacks. This is certainly a competitive industry with new companies surfacing and others failing. The restructuring will definitely influence the airline industry’s inclination concerning the development of both domestic and international service. It has been hard for this industry to keep revenue up and cover all the rising expenses, which makes for an obstruction in growth and prosperity.

This industry is heavily saturated with intense and rapidly evolving competition due to the relative ease of entry into the market. This accounts for why there are hundreds of airlines ranging from prominent well-known ones to virtually obscure and obsolete airlines. There are six primary airlines which compete fiercely and maintain the majority of the market share and total volume. The remaining fraction of the market share is then sub-divided and allocated amongst the hundreds of smaller, less relevant airlines. The only notable trend within the industry seems to be a total lack of consistency, as market shares and profits fluctuate regularly during any given time period.

Airlines Industry is large and growing, it is also the most fiercely competitive sector. It facilitates international trade, world economy growth, tourism and international investment. The airline industry has over time with the use of modern technology been able to take advantage of the short haul, high frequency and gained a competitive advantage over other forms of travel, such as buses and railroad travel. Additionally, the airline industry still holds the market for global travel at a low cost and convenient way to travel. The aviation industry gives a good contribution to the GDP which includes the following: airline services, general aviation, civil airport operations, aircraft manufacturing, and

The airline industry has seen a fair amount of turmoil over its relatively brief existence, perhaps as the result of its youth or perhaps, as others have contended, due to mismanagement and failures of regulation to maintain stability in the industry. Regardless of the reason, however, it is a fact that many major airlines have demonstrated a consistent problem in generating profits and keeping their business aloft, as it were. The recent bankruptcy of American Airlines, one of the nation's oldest and largest carriers, is just the most recent event in a long trajectory of failures and instabilities that have plagued the industry almost since its inception, and in extreme way since deregulation in the late 1970s.

The U.S. airline industry provides a unique service to its customers. It transports people and goods with efficiency and convenience which is not achieved by any other service. The purpose of this article is to collect data on the U.S. airline industry and analyze the state of the industry today. Data came from sources such as the Federal Aviation Administration, scholarly articles, and websites such as dallas.culturemap.com and airwise.com. Tools used to analyze the data include P.E.S.T., and Porter’s five forces. The analysis also focuses on the industries’ drivers of change and its key survival factors.

One of the world’s most competitive and prominent industries is the airlines industry. It generates huge amounts of income as well as employment each year. Some of the common names in US air travel service providers are Alaska, Northwest, Southwest, US airways, American etc.

Air Asia is a World’s Best Low Cost Airline. It had been established since 2001 with only two aircraft. The company started with a debt of USD11 million (MYR 40 million). Starting from year 2001, Tony Fernandes served as Chief Executive Officer. Nowadays, Air Asia has strengthened its position in the market and it manages to be a great competitor in the airlines industry. Recently, they have won the World’s Best Low Cost Provider and Asia’s Best Low Cost Airline for seventh consecutive year at the Skytrax World’s Airline Awards. This proves that the company has served as a low cost provider.

The analysis of AirAsia’s financial performance in the last 4 years (Based on AirAsia Annual Report from 2010 to 2013) and its attributes to assist present and future investors on whether to buy, hold or sell their investment in AirAsia Berhad (2011-2014).

Thinking about airlines, the first thought which probably comes to mind would be luxury and comfort. However, there is much more to the airline industry than just that. Yes, most of the airlines worldwide are facing a cycle of rising operating costs and declining profits and margins. Now, passengers may not be able to observe these characteristics, but after extensive research it is quite apparent the global airline industry is in disarray.

In the past decade, air travel has become more and more popular and has a growing increase of 7% per year (The Airline Industry). Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year (The Airline Industry). In the recreational

After a century of perpetual development [1], the commercial airline industry has witnessed a steady increase in airplane passenger capacity [2]. The industry itself is a notable economic force, from the perspectives of both operations and its impacts on relevant industries such as aircraft construction and tourism [3]. Different scales of wealth has led to market segmentations between airline companies with dissimilar objectives and consumer focus: premium airlines like Singapore Airlines offering top-notch service, comfort, and quality at a higher price whilst low-cost airlines such as easyJet are catering to consumers that prefer economical flights.

The September 11 attacks left a major impact that the airline industry is yet to recover from. Extended recession and increasing oil prices are the other major factors affecting the growth of the airline industry. At this scenario, the airlines operating with unoccupied seats make huge losses and sometimes the airliner even goes bankrupt; for instance, the kingfisher airlines in India has gone bankrupt due to failure in managing the unoccupied seats and inefficient management in their ticket pricing strategies. Even the recent disappearances of aircrafts from Malaysian airlines have unfavorably affected the global airline industry leaving airlines operating with vacant seats.