British Airways Valuation - 8265 Words

Global Economic There is increasing confidence that the world economy is enjoying a classic cyclical recovery. Global economy is on a recovery path aided largely by the quick end to the Iraqi war, which generated positive outlook among markets and built up business and consumer confidence. GDP growth rate was 0.2% in the first quarter of 2003 in UK, growth rate for the second and third quarter went up to 0.6%, pointing to a growth rate of 2.0% end 2003. Unemployment rate has been decreasing to a rate at 4.7% according to the National Statistics with Inflation falls (September: CPI now 1.1%, RPI 3.1%) in 2004. UK government increases the interest rate to avoid inflation during past years. HM-Treasury in November 2003 forecasted the†¦show more content†¦The company s other activities include its range of aircraft maintenance, package holiday and airlines service offerings. 1.2 Competitors Porters ‘five forces competition model New Entrants Threat of new entrants Industry competitors Suppliers Buyers Bargaining power Intensity of rivalry Bargaining power of suppliers of buyers Substitutes Threat of substitutes Source: Porter (1985) British Airways PLC (BAY-LN) focuses on international and domestic scheduled and charter air services for the carriage of passengers, freight and mail. The Group s is globally allied and holds code share arrangements agreed with Finnair, Iberia and Cathay Pacific. In an attempt to compete backwards in order to better control competition. Analysis of the Airline Industry In order for a company to be able to compare itself with its rivals in terms of competition intensity and profitability, the five forces model can be used. This model is consisted of three ‘horizontal sources of competition these are the threat of substitutes, the threat of new entries and the competition among rivals. The other two ‘vertical sources of competition are the power of suppliersShow MoreRelatedHistory of British Airways3844 Words   |  16 PagesHistory: British Airways PLC is the largest international airline in the world. It is based at Heathrow Airport in London, the busiest international airport in the world, and has a global flight network through such partners as USAir in the United States, Qantas in Australia, and TAT European Airlines in France. Via its own operations and those of its alliance partners, British Airways serves 95 million passengers a year using 441 airports in 86 countries and more than 1,000 planes. British AirwaysRead MoreQantas Airways Ltd: Analysis and Valuation4978 Words   |  20 Pages†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.11 5.1 Key Financial Ratios†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦11-12 6.0 Valuations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦15 6.1 Dividend Valuation Model†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦14-16 6.2 Price-Earnings(P/E) Model.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..17 7.0 Limitations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦18 8.0 Conclusions and Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...19 5.0 List of References†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦20-22 APPENDIX 1 Qantas Airways Ltd – Key Facts†¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.23-24 2 Ratio Calculations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Read MoreSituational Analysis Of Qantas Airlines Situational Analysis1211 Words   |  5 Pagesarea. In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this isRead MoreAirline and Virgin Atlantic Airways9278 Words   |  38 Pages1. Compare and contrast Virgin Atlantic Airway s strategic development with any other (non-virgin) airline. According to   (1980), firms are under great pressure to have modern plans to be competitive and should have adequate capability to achieve their target market share. Virgin Atlantic Airways is among the most successful business ventures of the Virgin empire owned by Richard Branson. Its strategic development is rooted on the need to surpass competitors while balancing financial resourcesRead MoreCases Questions1421 Words   |  6 PagesIntro. to Debt Policy Value* No Questions, but review M M Theory on debt and value of the firm. VIII. HBS Case- â€Å"Leveraged Betas and the Cost of Equity No Questions IX. C16- The Boeing 7E 7* 5 X. C26- Jet Blue Airways, IPO Valuation* 6 XI.a C35- Merton Electronics 7 XI.b C36- Carefour S. A.* 8 XI.c C44- Palamon Capital Partners* 9 XII. GM Dividend Policy Negotiation (Information to be provided by Dr. Kiss) * Note: Excel SpreadsheetsRead MoreStrategic Human Resource Management3790 Words   |  16 Pagescompetitive advantage in the industry. Human Resources Management is the strategic management of the employees, who individually and collectively contribute to the achievement of the strategic objectives of the organization success. As in the case of British Airway, they use strategic human resource management to achieve organizational goal and success. They take many strategic decision and by thus able to reduce the operational cost, increase return on investment, offer employee training and healthcareRead MoreFinancial Analysis of British Airways4252 Words   |  18 Pages £9,278m to  £8,515m. Revenues fell for 3 consecutive years; at the end of 2004 revenues were  £1,718m or 19% lower than in 2001. The following years saw revenues rise  £955m or 13% above this. Let us now consider these changes in more detail. British Airways earns revenue from 3 published sources: Passenger services, cargo services and ‘other, being mainly fuel surcharges. Revenues fell their sharpest during y/e 31 Mar 2002, by 10.1% or  £938m. The atrocities of the terrorist attacks in New YorkRead MoreSocioeconomic Status in Brazil42043 Words   |  169 PagesBritish Airways Plc Annual Report and Accounts Year ended 31 December 2012 Company registration number: 1777777 This page has been intentionally left blank Contents Officers and professional advisers 1 Business review and Directors’ report Business review Management review Financial review Internal controls and risk management Directors’ report 2 5 8 12 Directors’ responsibilities statement in relation to the financial statements 14 Independent auditors’ report 15 Read MoreUnit 2 Managing Financial Resources and Decisions6487 Words   |  26 Pagescompany and enable investors make financial decisions. Ratios include gross profit margin, ROI and return on owners equity. Ratios provide information about a companys liquidity, profitability, debt, operating performance, cash flow and investment valuation. Also involved in financial planning is a good debt collection policy and also spending policy. Without financial planning a business will not know what it can achieve, afford and where it’s able to cut costs and operate more efficiently in theRead MoreRyanair: Its Vulnerability and Exposure to the Macroeconomic Environment2143 Words   |  9 Pagesthese higher oil prices by reducing costs across all other areas.† (Ryanair, 2008, p. 4) They are also exposed to fluctuations in foreign exchange rates, the extent to which they made a loss of over â‚ ¬5m due to changes in the American dollar and British Sterling exchange rates against the euro. This exposure can be minimized by hedging with financial derivatives. Even though Ryanair incur costs that they have little control over such as fuel, â€Å"there are others that will influence the costs per