Financial A comparison of Ryanair and British Airways Essay

Financial a comparison of Ryanair and British Air passage

Aviation Finance 12CVC062

Balázs Baumgartner (B015926)

10/12/2012

Stand of Articles

Review of Ryanair's and United kingdom Airway's current financial situation........................................................ a couple of Liquidity..................................................................................................................................................... a couple of Performance and earning.......................................................................................................................... a few Solvency..................................................................................................................................................... 3 Fleet responsibilities................................................................................................................................... 4 Funding in the short run......................................................................................................................... 6 Shareholders' equity and dividend insurance plan................................................................................................. 7 Downgrading.............................................................................................................................................. 7 Upcoming financing........................................................................................................................................ almost eight Conclusion................................................................................................................................................. 9 Reference list........................................................................................................................................... 12

1

Norwegian air is considered while the leading of the cheap business model, although British Breathing passages is constantly rated amongst the world's best musical legacy carriers. Both of these airlines are dominant businesses in their section with excessive passenger numbers and vast network coverage. And so the following question rises – how these types of airlines are different in terms of financial and which will business model much more fruitful during an economic economic downturn? In order to find the response a thorough monetary investigation has been conducted counting on the data outlined in the airlines' annual information. In the initial section of the report the emphasis is put on the current financial situation in the airlines, whilst outlining the current sources of fund. These options are researched thoroughly in the second component. The final section evaluates the possible or available sources to finance future assets.

Review of Ryanair's and Uk Airway's current financial situation Ryanair in the fiscal year of 2012 features generated an overall total of €4, 390. 2m operating income mainly through scheduled profits. The company has increased its functioning revenues as 2010 simply by €1, 2bn primarily because of fare boosts. In 2012 the entire operating charge was €3, 707m. This is also the peak in the last three years, generally attributable to gasoline and petrol costs, which have almost doubled since 2010. Hence the internet profit pertaining to the 2012 fiscal year was €560. 4m, the best in the great the company. British Airways in the fiscal 12 months ended 2011 December thirty-one accounted a profit of £672m after paying of the taxes. This could be considered as a significant improvement after 2010's earnings of £170m. These characters do not offer enough in-depth information on the airlines' genuine situation. In order to identify the sources of financial and the real position of BA and Ryanair further more investigation with the aid of ratios is essential.

Liquidity

Current ratio is actually a liquidity measure that even comes close the liquefied or current assets with the airline using its current debts. (Atrill, McLaney 2002)

Intended for the financial year of 2012 Ryanair's CR was 2 . 1355, which presents high fluid. Generally the...