Business / Cathay Pacific Financial Report
Cathay Pacific Financial Report
Autor: andrew 18 September 2012
Words: 8951 | Pages: 36
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
INDUSTRY ANAYLSIS 4
MACRO ENVIRONMENT - PESTLE 6
PORTER'S FIVE FORCES 10
Rivalry Among Existing Competitors 10
Threat of New Entrants 11
Bargaining Power of Buyers 11
Threat of Substitutes 11
Bargaining Power of Suppliers 12
HORIZONTAL/VERTICAL ANALYSIS 14
RATIO ANALYSIS 16
TREND ANALYSIS 20
SUSTAINABLE GROWTH RATE 24
APPENDIX 1: ADDITIONAL INDUSTRY INFORMATION 29
APPENDIX 2: ADDITIONAL SOURCES 30
APPENDIX 3: ADDITIONAL MACRO DETAILS 31
APPENDIX 4: DEFINITIONS OF RATIOS & CALCULATIONS 35
APPENDIX 5: SWOT DETAILS 42
The airline industry is incredibly complex with many external factors influencing an airline's competitiveness in their chosen markets. The airline industry and likewise the major airline carriers are divided into two segments, passenger and cargo. Airlines offering passenger travel are further divided either as a full-service or low cost carrier (LLC), then further segregated geographically through their routes and regions.
Over the last decade the industry has sustained significant losses collecting $4.3tn in revenue and managed a profit of just $47bn, resulting in a 1% (Figure 1) return. For period alignment with our analysis, figures for 2010, the industry faired a little better returning 3.2%, $18bn from collective revenue of 55%, $4bn.
Figure 1; Source: IATA
Within Asia Pacific (APAC) however, the airlines since 2007 have on average been more profitable than the US and European airlines. This can be seen in strategic moves such as Cathay Pacific with a combination of total improvement on quality, new fleet investment and new cargo joint ventures with Air China to gain new cargo routes, like the Yangtze River Delta Region.
Aside from 2009, APAC airlines has had a growth trend (Figure 2) and even rebounding stronger post Global Financi...