minimize the risk of negative cash flows. We did not consider self insurance as this would violate our obligation to the Export-Import Bank. Key Assumptions • 342 flight days per year • 6 flights per day for Boeing 757’s; 2.25 for Airbus A340/model 200; and 2 for Airbus A340/model 300 • Risk of crash per flight: 1/5‚000‚000 based on industry averages • Total replacement value for 86 planes: $5.958M • Incidental loss varies from $1M and $5M annually Method These assumptions were modeled for
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Executive Summary A key factor in determining a project’s viability is its cost of capital [WACC]. The estimation of Boeing’s WACC must be consistent with the overall valuation approach and the definition of cash flows to be discounted. Note that this process is a forward looking focus and is laden with uncertainty. It is how the assumptions are modeled that many costly mistakes can be made. While finding a rate of return for an individual project‚ it is important to remember that WACC
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Cathay Pacific $0.59) b. Technological Change i. Technology is a key determinant however change is not very rapid ii. Releases of new aircraft models A380 – USD$327.4m‚ Boeing 747-400 - $247m (http://www.flightglobal.com/articles/2008/04/22/223184/airbus-includes-surcharge-in-2008-catalogue-prices.html) iii. Additional cost to adept resources with changes: 1. Retraining pilots 2. Retrofitting aircraft‚ additional airport tax iv. Online booking system heavily relies on IT development c. Product
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Virgin Atlantic Airways – Company Overview General Information Since it was founded in 1984‚ Virgin Atlantic Airways has become Britain’s second largest carrier serving the world’s major cities. Now based at London’s Gatwick and Heathrow airports and Manchester airport‚ it operates long haul services to thirty destinations world-wide as far apart as Las Vegas and Shanghai. Virgin Atlantic has enjoyed huge popularity‚ winning top business‚ consumer and trade awards from around the world. The airline
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I. Economy The economy plays a very large part in the airline industry. Recessions are known to cause less demand for air travel for both business and leisure travelers. The financial crisis in 2008 had an extremely negative impact on the industry. The companies saw sharp declines in both passenger traffic and profit margins. While the industries are still in a sensitive spot‚ the US airlines managed to make a small profit in 2009. Thanks to the efforts of combating the dwindling demand by shrinking
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and employees. Some of the factors that lead to the low unit costs are the efficient utilization of the aircraft‚ the operation of only one type of aircraft‚ which is the Airbus A320‚ with a single class of service‚ a productive workforce‚ and low distribution costs. JetBlue has acquired an all-new fleet of aircraft‚ the Airbus A320. They currently operate 45 (53 by the end of 2003)‚ with plans to order 100 more. These planes are expected to start arriving in mid-2005 with scheduled completion set
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that the suppliers do not have much of a control over the prices put out to Jetstar. With regard to the supply of airplanes‚ there are currently two manufacturers that dominate the scene in the airline industry; Boeing and Airbus. Since Jetstar has dealings with both Boeing and Airbus‚ the power of the suppliers over the airline is relatively low as compared to others that have dealings with only one manufacturer (Rahman‚ Joha‚ 2010). The power of buyer is significant as seen through the intense price
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million. To comply with the towering demand‚ budget airlines Citilink‚ Lion Air and AirAsia have all set increase plans for this and the coming years. The budget airline unit of national flag carrier Garuda Indonesia‚ Citilink‚ will receive eight Airbus A320s sometime between June and December this year to make-up international routes. The carrier currently operates 22 aircraft‚ last month with a flight from Surabaya‚ East Java‚ to Johor Bahru‚ Malaysia‚ it has made its international-route debut
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SUGGESTION CONCLUSION INTRODUCTION: Kingfisher Airline is a private airline based in Bangalore‚ India. The airlines owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines started its operations on May 9‚ 2005 with a fleet of 4 Airbus A320 aircrafts. The airline currently operates on domestic routes. The destinations covered by Kingfisher Airlines are Bangalore‚ Mumbai‚ Delhi‚ Goa‚ Chennai‚ Hyderabad‚ Ahmedabad‚ Cochin‚ Guwahati‚ Kolkata‚ Pune‚ Agartala‚ Dibrugarh‚ Mangalore and
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PROJECT REPORT ON “KINGFISHER AIRLINES” [pic] Submitted in Partial Fulfillment for the Award of the Degree of Bachelor in Business Administration 2010-2012 Under the Guidance of:
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