1 Summary Low-cost carriers have been established for many years. A model for a low-cost airline is described‚ derived from the operations of several such carriers. The models followed by the three main low-cost carriers in the UK‚ Ryanair‚ easyJet and Go are then outlined. The impact of the differences between these models is then assessed to see how they affect the cost base and productivity of the airlines. Finally‚ it is suggested that Ryanair’s model is most suited for the current conditions
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Apart from analysing the macro-environment‚ the micro environmental factors must also be analysed. The Airline is one of the major industries in the world today and is greatly affected by Michael Porter’s "Five Forces" model. These are internal factors that have a direct impact on the industry and a business has to understand the dynamics of its industries and markets in order to compete effectively in the marketplace. Porter defined the forces which drive competition‚ contending that the competitive
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internationally operating airlines were Lufthansa‚ founded in1926 and Air France‚ founded in 1933. Other commercial Airlines were founded such as the famous Pan Am and disappeared again. Today‚ the world’s airline sector is dominated by large national Carriers who have for a 2 long time been under the influence of national governments. Only since 1978 deregulations formed a competitive market as direct subsidiaries consequently were abolished and the airlines were turned into independent‚ often stock-listed
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1. สายการบินแบบ Network Carriers หมายถึงสายการบินหลัก หรือ legacy carriersให้บริการเป็นแบบ Hub-and-Spoke โดยในต้นปี 2007 สายการบิน United‚ Northwest‚ American‚ Continental และ Delta ถือเป็นสายการบินที่ใหญ่ที่สุดในกลุ่มนี้ ในปี 2005 รายได้รวมของสายการบินทั้ง 5 สายการบินนี้รวมกันคิดเป็น 82 % ของรายได้ทั้งหมดของ 10 สายการบินใหญ่ในกลุ่มนี้รวมกันโดยรายได้รวมของสายการบินทั้ง 10 สายการบินคิดเป็นเงิน 25.3 พันล้านเหรียญสหรัฐ 2. สายการบินแบบ Low Cost Carriers หมายถึงสายการบินที่ดำเนินการภายใต้
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Valuation & Accounting Global November 2001 Valuation Multiples: A Primer Global Equity Research www.ubswarburg.com/researchweb In addition to the UBS Warburg web site our research products are available over third-party systems provided or serviced by: Bloomberg‚ First Call‚ I/B/E/S‚ IFIS‚ Multex‚ QUICK and Reuters UBS Warburg is a business group of UBS AG Valuation Primer Series Peter Suozzo +852-2971 6121 ■ peter.suozzo@ubsw.com Stephen Cooper +44-20-7568 1962 ■ stephen.cooper@ubsw
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Valuation & Accounting Global November 2001 Valuation Multiples: A Primer Global Equity Research www.ubswarburg.com/researchweb In addition to the UBS Warburg web site our research products are available over third-party systems provided or serviced by: Bloomberg‚ First Call‚ I/B/E/S‚ IFIS‚ Multex‚ QUICK and Reuters UBS Warburg is a business group of UBS AG Valuation Primer Series Peter Suozzo +852-2971 6121 s peter.suozzo@ubsw.com Stephen Cooper +44-20-7568
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weight = .15/1.15 = .13 Long-term debt weight = 1/1.15 = .87 Since the accounts payable has the same cost as the overall WACC‚ we can write the equation for the WACC as: WACC = (1/1.8)(.14) + (0.8/1.8)[(.15/1.15)WACC + (1/1.15)(.08)(1 – .35)] Solving for WACC‚ we find: WACC = .0778 + .4444[(.15/1.15)WACC + .0452] WACC = .0778 + (.05797)WACC + .0201 (.9420)WACC = .0979 WACC = .1039‚ or 10.39% We will use basically the same equation to calculate the weighted average flotation cost‚ except we will
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Established in the Queensland outback in 1920‚ Qantas has become Australia’s biggest household and worldwide carrier. Enlisted initially as the Queensland and Northern Territory Aerial Services Limited (QANTAS)‚ Qantas is generally viewed as the world’s driving long separation aircraft and one of the most grounded brands in Australia. The Qantas Group’s primary business is the transportation of clients utilizing two corresponding aircraft brands - Qantas and Jetstar. They likewise work auxiliary
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L.Spight FIN100 – Week 10 Integrative Case Study Due – 9/5/10 Case Information: You work for HydroTech‚ a large manufacturer of high pressure industrial water pumps. The firm specializes in natural disaster services‚ ranging from pumps that draw water from lakes‚ ponds‚ and streams in drought stricken area to pumps that remove high water volumes in flooded area. You report directly to the CFO. Your boss has asked you to calculate HydroTech’s WAAC in preparation for an executive retreat
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If the company uses its overall WACC it may have divisions accept projects with returns below their respective WACC which will result in losses and vice versa. 2. The Weighted Average Cost of Capital (WACC) is as average that reflects the expected return on all of a companies securities. For the WACC of Marriott as a whole represents tall of Marriott’s divisions as one company. Marriott’s divisions are lodging‚ restaurant and contract services. To calculate the WACC a risk free rate was used of 8
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