Comparison between Low-cost and Traditional Airlines. Case study: easyJet and British Airways
Fedosova, Aleksandra (2016)
Fedosova, Aleksandra
Yrkeshögskolan Arcada
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201603233503
https://urn.fi/URN:NBN:fi:amk-201603233503
Tiivistelmä
This thesis work is conducted with purpose to make an analysis of the financial results of traditional and low cost airlines and compare them. The comparison is done through analysis of the representatives of traditional and low cost airlines – British Airways and easyJet. In addition, the investigation provides an overview of the airline industry as a whole.
Researcher applies fundamental analysis, which includes four components: business strategy analysis, accounting analysis, financial analysis and prospective analysis. However, the research is not covering the prospective analysis.
Data for this thesis is collected by reviewing literature related to the topic and by analysing the data from annual reports of chosen airlines. In order to answer research questions, the collection of numerical data, its evaluation and analysis of existing financial theories is done. Consequently, quantitative research method is applied throughout the investigation.
The research concludes that the competition between airlines is vast nowadays and it continues to grow with the fast developing airline industry. Eventually, the study proves that low cost airlines do have better financial results and they are the consequence of the strategy of low-cost carriers, the main aspect of which is the reduction of costs at the possible higher degree.
Researcher applies fundamental analysis, which includes four components: business strategy analysis, accounting analysis, financial analysis and prospective analysis. However, the research is not covering the prospective analysis.
Data for this thesis is collected by reviewing literature related to the topic and by analysing the data from annual reports of chosen airlines. In order to answer research questions, the collection of numerical data, its evaluation and analysis of existing financial theories is done. Consequently, quantitative research method is applied throughout the investigation.
The research concludes that the competition between airlines is vast nowadays and it continues to grow with the fast developing airline industry. Eventually, the study proves that low cost airlines do have better financial results and they are the consequence of the strategy of low-cost carriers, the main aspect of which is the reduction of costs at the possible higher degree.