EasyJet plc and British Airways Research Paper Example | Topics and Well Written Essays - 1500 words

EasyJet plc and British Airways - Research Paper fashion modelesayJet plc is growing from strength to strength.easyJet plcs working capital position is very strong. BAs stability can be threatened, if in that location be sudden adverse circumstances like the 9/11. It could go up itself unable to meet its occurrent debts if the receivables become uncollectible. Gearing has improved in BA by 23.5pp. However, easyJet has resorted to borrowing to fund the capital expenditure.However, the list operating data in BA are encouraging and will appear to provide a firm footing to lift itself out of this prevailing troubled circumstances. Despite the current circumstances, BA is inveterate to invest in operating assets to improve its value-added services, which it considers to be the backbone and introducing cost reduction schemes to minimize the pecuniary burden arising from the magnitude of operating expenses. The improvements as seen on the operating data are welcome intelligence ag ency to the Senior Management at BA. If the trend continues BA will be on its way to the fiscal recovery.easyJet plcConsolidated financial and operating data Year ended 30 September Change (unaudited) 2006 2005 % get a line performance indicators Return on equity (1) 10.1% 7.1% 3.0pp Profit before tax per lowlife () (2) 3.32 2.38 39.6 taxation per seat () (3) 41.66 38.66 7.8 Cost per seat () (4) 38.34 36.28 5.7 Cost per seat excluding fuel () (5) 28.36 28.78 (1.5) Seats flown (millions) (6) 38.9 34.7 12.1 (http//academia-research.com/files/message/603169_EasyJet%20annual_report_2006.pdf)British Airways2005-06 2004-05 Group results Revenue m up 9.6% 8,515 7,772 Operating profit m up 26.8% 705 556 Profit before tax m up 20.9% 620 513 Attri unlessable profit for the year m up 19.6% 451 377 Net assets m up 48.5%...It could find itself unable to meet its current debts if the receivables become uncollectible.Despite the current circumstances, BA is continuing to invest in operating ass ets to improve its value-added services, which it considers to be the backbone and introducing cost reduction schemes to minimize the financial burden arising from the magnitude of operating expenses.The Core competence of easyJet plc is the winning combination of low cost with care and convenience. Low cost is by far the most important component. Convenience is not only about their award winning website but also the network of centrally located airports, which give their customers quick access to where they want to go.The Core competence of BA is in being an Internet age airline with online systems and features that make the travel experience ingenuous and hassle free. Providing superb customer service and products, which their customers want is at the heart of our business. The main activities of the Company and its subsidiaries are the operation of international and domestic scheduled and charter air services for the carriage of passengers, freight and beam and the provision o f ancillary services.The key achievements of easyJet plc have been given prominence, cleverly projecting and differentiating itself and gaining mileage in two-bagger building.