Airlines Industry Group Presentation Group member: Kargan Taylor Zhihao Wang Kenneth Wu Meng Wu Ruoyi Zhao.

Airlines Industry Group Presentation Group member: Kargan Taylor Zhihao Wang Kenneth Wu Meng Wu Ruoyi Zhao. slide 0
Download Airlines Industry Group Presentation Group member: Kargan Taylor Zhihao Wang Kenneth Wu Meng Wu Ruoyi Zhao.

Post on 23-Dec-2015




0 download


  • Slide 1
  • Airlines Industry Group Presentation Group member: Kargan Taylor Zhihao Wang Kenneth Wu Meng Wu Ruoyi Zhao
  • Slide 2
  • Part 1: Overview
  • Slide 3
  • Market Sector: Services Industry Sector: Regional airlines
  • Slide 4
  • Airlines in General offer scheduled air transportation of passengers and cargo include domestic passenger transportation (about 70% of revenue) international passenger transportation (about 20%) mail and freight and others make up the rest of the revenue. The basic operations of airlines include acquiring and maintaining airplanes and airport facilities, acquiring passengers and/or freight, managing staff, and operating flights. The flight equipment (airplanes) that an airline uses is crucial to efficient operations. 5 Domestic Airlines National Regional International
  • Slide 5
  • National Airlines Otherwise known as Major Airlines Focus on long distance routes They work at major cities in the US as well as international places. Account for 95% of all airline passenger traffic in the US Operating revenue of over 1 billion Similar to regional Airlines Offer regular schedules over prescribed routes Offer published timetables Major airlines use broadcast, print, and online advertising.
  • Slide 6
  • Difference between Major and Regional 7 Major Airlines have the largest number of employees for the different types of airlines Major Airlines has a higher passenger seating and more flights than Regional airlines. Regional airlines only cover destinations within the country.
  • Slide 7
  • Regional Airlines Characteristics - Provide air services between small cities -Connect the small communities to major airlines -Operate between points within a specific area of the country -Offer regular schedules over prescribed routes -Offer published timetables -Air flight and services offered to the general public
  • Slide 8
  • Large regional Large regionals are scheduled carriers with operating revenues of $20 million to $100 million. -Medium regional's follow the same market-niche strategy as the large regional's and operate many of the same type aircraft. Their distinction is simply that they operate on a smaller scale, with operating revenues under $20 million. -Small regional's, sometimes called commuters, represent the largest segment of the regional airline business. There is no official revenue definition of a small regional. All have less than 61 seats. Medium regional Small regional
  • Slide 9
  • Regional Airlines Category have fewer seats than airlines major airlines or national airlines, usually around 70 divided into three sub-groups: large, medium and small
  • Slide 10
  • Part 2: Market Value
  • Slide 11
  • Market Capitalization for the 3 most current years 8
  • Slide 12
  • Part 3: The Competitive Landscape
  • Slide 13
  • Percentage, via market capitalization, airlines industry contributes to the GDP. Industry : Major Airlines Industry Market Capitalization: $1314.1 Billion P/E: 10.10 ROE%: 38.10 Div. Yield%: 1.18 Long Term Debt to Equity: 109.00
  • Slide 14
  • Top 5 Competitors in the Airline industry (North America/US) 1. Delta Airlines 2. United Airlines 3. Southwest Airlines 4. American Airlines 5. US Airways
  • Slide 15
  • Market Capitalization: $8.43 Billion Employees: 76,626 Net Income: 1.43 Billion Operating Margin: 0.09 Revenue: $36.47 Bill. P/E: 5.84 ROE%: 243.27
  • Slide 16
  • United Airlines: Market Capitalization: $6.7 Billion Employees: 88,000 Net Income: -241 Million Revenue : $37.38 Bill. Operating Margin:.05 P/E: ROE%: -11.64
  • Slide 17
  • Southwest Airlines: Market Capitalization: $6.9 $Billion Employees: 46,048 Net Income: $495.00 Million Revenue : $17.02 Operating Margin: 0.05 P/E: 14.49 ROE%: 7.34
  • Slide 18
  • Percentage of the overall market cap that is rep. by Delta, United, & Southwest: $8.43 + $6.7 + $6.9 = $22.03 / $1314.1 =.0167 %
  • Slide 19
  • 2 Industry Leaders in Terms of Market Cap: 1. Ryanair Holdings with a Market Cap of $678.8 Billion 2. Tiger Airways with a Market Cap of $582.7 Billion 2 Industry Laggards in Terms of Market Cap: 1. Discovery Air with a Market Cap of $ 38.6 M 2. SkyWest with a Market Cap of $90.4 M
  • Slide 20
  • Three companies profiled fall in this competitive landscape
  • Slide 21
  • Part 4: Performance
  • Slide 22
  • Southwest Airlines pilots elected a new president to lead its union. Unprepared travelers hit with airline fees US Airways: Sandy cut profits by $35 million American Airlines is planning to put dozens of pilots back to work.
  • Slide 23
  • Slide 24
  • Slide 25
  • Slide 26
  • 26
  • Slide 27
  • Southwest airline stock have a hugh increase
  • Slide 28
  • Delta Airline Stock Have a little change
  • Slide 29
  • US Airline Stock Have a hugh increase
  • Slide 30
  • The airline announced it will start recalling furloughed pilots, beginning in January. Forty pilots are scheduled to come back the second week of January. The airline says it plans to bring back another forty or so, every month, for the near future. Pilots have been saying for quite awhile that they could use the help.
  • Slide 31
  • work cited "SouthWest Airlines Co.." Yahoo Finance n.pag. Yahoo Finance. Web. 29 Nov 2012.. "Delta Airlines INC." Yahoo Finance n.pag. Yahoo Finance. Web. 29 Nov 2012.. "Airlines." Hoovers n.pag. Hoovers. Web. 29 Nov 2012.