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Essay / Financial comparison of Air France, Ryan Air and...
Financial comparison of Air France, Ryan Air and American AirlinesI decided to write the first experiential exercise on three airlines. I chose Air France, which is the most famous airline in Europe, a large American company American Airlines and finally a large low-cost airline in Europe, Ryanair. First of all, I would like to give a brief introduction about all airlines. three companies, what are their main advantages over other airlines, because they are all leaders in their own sector. After doing the calculation and drawing a conclusion, which company is the most efficient, which is the most attractive for investors.Air FranceAir France is a subsidiary of the Air France-KLM group. It operates scheduled passenger and cargo services worldwide to 185 destinations in 83 countries. On September 30, 2003, Air France and KLM Royal Dutch Airlines announced the merger of the two airlines, the new company will be called Air France-KLM. The main advantages of Air France-KLM are:• Passenger transport - the largest European airline with 25.5% market share and the largest airline in the world in terms of operating revenue.• Freight Transport is the largest non-integrated international freight transport company. • Aircraft maintenance and repair is the largest multi-service operator[pic ](table from the Air France-KLM annual report)The net result of the The year 2007 was €767 and the company's turnover was €24,114. Percentage of Sales = $767/24,114 = 0.0318 ≈ 3.18% (All data in millions of euros) Return on capital employed = EBIT / (TA-CL) = 1149/ (30690-9191) = 0 .0534Total shareholder return = (∆ share price from first to last + all dividends) / share priceTotal shareholder return= {(33.07- 17.01)+0.96 }/33, 07 = 0.53RyanairRyanair has grown from 3 million passengers to over 50 million passengers per year. From an airline that operated just 19 routes in 1997, Ryanair in 2007 operated more than 550 routes from 22 base airports across Europe. The number of employees has quadrupled to today reach more than 4,500 people. More importantly, the average price of a passenger has fallen from €57 in 1997 to just €44 today. (Ryanair) In addition, the airline offers frequent point-to-point service which allows it to avoid service costs for connecting passengers, baggage transfer costs and assistance costs for passengers in transit..