Though, easyJet is not far behind as it is ranked as the third largest airline in terms of number of passengers travelling through airline. The main exposure at this time is with the as the aircraft is equipped with a ageing A319 fleet, where easyJet is reliant on the different engine type. Corporate Governance Issues Corporate Governance issues are not clearly described in the literature generated internally from the company or by the company auditor, PwC. Evaluation of the company Business Performances The report uses the income statement to demonstrate the business performances of easyJet. Moreover, the feature that differentiates easyJet in comparison to Ryanair is that easyJet is that it is ranked as number 1 or 2 on 49 of the top 100 routes of the world. All these purchases have increased the net book value of the company thereby leading to declining asset turnover ratio. In other words, easyjet use only modern fleet which not only gives comfort to customers but also saves the company money because new and modern aircraft requires less money and effort in maintenance.
In the airline industry, managing time and being on time is important and it has an important role in the customer satisfaction level. However, over the recent years there are social changes being witness. By evaluating the company , the report demonstrates the significant changes that occur within the company financial record between 2010 and 2011. Failure to adequately manage third party performance Any specific supplier risks are identified may adversely affect and assessed during the procurement easyJet's reputation process and controls and risk mitigations and its operational and are included in the contracts entered financial performance. Significant disruption In addition, easyJet holds business to the network could disruption insurance which provides adversely affect easyJet's some cover for some of these very significant reputation and its operational shock events such as extreme weather, and financial performance air traffic management issues and loss including the payment of access to key airports. Drop In Oil Prices Means An Airline Profitability Boost Now, But…. This later increased to 24.
Limitation of trend analysis While trend analysis is a very useful techniques for understanding the general performance of a company over a period of time, the techniques has one major limitation. Air Berlin, subject to anti-trust and This could cause a loss regulatory approvals, there is now of market position and an additional programme risk relating erosion of revenue. For instance, the numbers of passengers transported in 2014 was 64. According to the financial analysis solvency ratio-see section above , done earlier in this paper, Easyjet has been the most financially stable low cost airline for the last three year. According to the 2008 , the audit report produced by PwC reported the following. In the civil aviation airline, terrorism activities have a special kind of impact. Ethical consideration While conducting this research ethical standard required of every researcher were adhered to.
By analyzing the financial statements of the two airlines, it has been identified that the revenues of the airlines have been increasing. More importantly, the easyJet also moved away from leasing the expensive Boeing aircraft. The implementation of brexit is also likely to affect easyjet performance. As result, easyjet was forced to cancel 3,268 flights flight or to delay some of the flight. More importantly, easyJet increased its net profits by 84. However, when new assets are purchased, the book value of the asset is very high as no depreciation is deducted. This decline was caused by decrease in revenue as well as income.
Easy Jet derives its competitive market advantages from implementing market pairs with top airlines to achieve market shares in Paris, London Gatwick, Amsterdam, Milan Malpensa, and Geneva. Moreover, with the quality service and meeting the customer expectations and ensuring customer satisfaction Ryanair has become the leader in the market as it carries the highest number of passengers in a year. However, easyJet was able to decline the maintenance costs by 9. Moreover, the company was able to increase both the operating margin and the net profit margin making the company to demonstrate a strong financial position between 2010 and 2011. How efficient is easyjet compared to others players in the industry? There are significant The Airbus A320 family which includes cost and efficiency advantages the A319 and A321 is one of the two of a single fleet, however primary fleets used for short-haul there are two main associated travel, the other being the Boeing risks: B737 family. Books— this research also made good use of books. They are two main sources of information; primary and secondary sources.
Only credible sources were used and where necessary information was crosschecked with other sources to ensure they are reliable and accurate. The research aims to analyzes the business and financial performance of easyjet and compare them with those of others in the industry. They may therefore fail to include negative but necessary information that may damage the image of their business. Although, the company recorded the increase in the costs on depreciation from £72 Million to £83 Million, nevertheless, the company was able to increase the net profits from £121 Million in 2010 to £225 Million in 2011. The higher the ratio, the more able a company is to meet it short-term financial obligation Bensoussan et al 2012. On the other hand, secondary sources of information describe, interpret, analyze or process existing information. A company with loyal customer enjoy a relatively steady earning.
It needs to be reviewed regularly Bensoussan et al 2012. The external environment although pose some challenges to the company, overall it favouring easyjet. On the other side, the improvement of quick ratio in 2016 was mainly caused by decrease in current liability. Alicante, Amsterdam, Barcelona, Geneva and Malaga are firm favourites with just under seven million passengers flying in and out of these destinations alone. Specifically, the analysis was used to look into political factors such as government regulation, taxation etc; economical condition such as exchange rate, fuel prices etc; social factor such as changing demographic characteristic of traveller, as well as technological advances that are shaping easyjet performance. Despite the competition, easyjet has posted very positive results and as such it would be crucial to analyze and understand how the company has managed to stay on the growth path despite such high level of competition. As result I have been always eager for an opportunity to apply theoretical knowledge and skill gains through the course.
In 2014, the company was operating in 400 routes. As it can been seen above, the operating profit margin for easyjet increased from 12. In 2015, the interest coverage ratio increased to 62. This information is not a substitute for reading the full 2017 Annual report and accounts. In addition, the budget travel segment continues to attract new entrants.