[abolorelegacy]

@trephena thank you so much for the prompt response!

this your advice has just given me a head start and I will incorporate in my RAP

just to draw your attention as most of the growth would be openings of new base and route, delivery of new fleet which enhances its operation capacity also revenue growth would be combinations of non-schedule flight product mix such as hotel accommodation, car rental service, on flight sales of bus and train ticket using POS, commission on sales through its website.

lastly, I wish you can be my mentor or perhaps because of your sensitive position recommend someone who can be a mentor as most of the mentor I have been fortunate to meet are either base in Dubai or Pakistani or united state who don’t have little knowledge of European market.

[abolorelegacy]

Hi @trephena
I’m writing on T8 using Ryanair as a case study and Easyjet as a comparator

I’m in part three of my RAP and I’m getting stuck of how to structure my words in other for me not to missed the point and also not write too much as the word count is limited to 4500,
just your candid advice on how best to structure my ratio analysis since it is a 3yrs performance I’m looking into and that of its competitors

1 would it be better for me to do analysis on a straight 3years trend of the coy performance?

e.g The above graph clearly shows that Ryanair outperformed Easyjet in terms of higher operating margin, as Ryanair operating margin fluctuate from 14.7% in 2013 to 13% in 2014 and 18% in 2015 a year on year increase of 38.5% btw 2014 ad 2015 a turning point after a three-year decline in growth, as prophecy between 2012 and 2013 shows there was a decrease in growth of 5.5% and the trend continue between 2013 and 2014 where it suffer a further decrease in growth of 11.6%

although Ryanair outperformed Easyjet in terms of higher operating margin it could be observed Easy jet has witnessed a steady increase in the last 3yrs first time easy jet recorded a double-digit margin since 2002 from 11.7% in 2013 to 12.8% in 2014 and 14.7% respectively in 2015 a growth of 9% btw 2013 and 2014 and a growth of 15% btw 2014 and 2015 fiscal year whilst highlighting the reason for the increase such as passenger volume, or decrease in fuel cost, rise in flight ticket and increase in ancillary revenue etc.

or

2 to do a year on year performance analysis such as

e.g 2013
at 14.7% operating margin as a proportion of revenue is lower compared to 2012 15.5% operating margin a drop in growth of 5.2%

there was an increase in sales revenue of 11.2% in 2013 which is slower than the increase of 12.4% in operating expenses

the increase in op expenses is largely due to 18.3% increase cost of fuel which represent 45% of total operating cost compare to prior year 43%

Other factors also include growth in the airline which reflects 7.5% increase in op expenses per passenger capacity in 2013 fiscal year, exchange rate differential attributable to the cost of operations

total operating profit went up by 5% to €718m

2014 will also follow, and at what point do I bring in the comparator company? having in mind that I have another 4 or 5 ratios to write about such as the KPI

this is just to give you the idea of what my problem is and I hope you will be able to proffer a lasting solution and remove the doubt in my mind.

[abolorelegacy]

KUDOS!!! @Trephena

thank you for the prompt response, and will Everly be grateful for this insightful info, all your point is noted and will be taking on board.

in the course of doing evaluation do you think SWOT & PESTLE will be sufficient or are there any business model that could be adopted? dat’s applicable in service industry?

Best regards!

[abolorelegacy]

Hi trephena,

thank you for the good job and services u’re rendering may you continue to increase in wisdom!

I’m planing to write my RAP on T8 and with the new policy on ICB i have settle with the airline sector going for the low cost airline operator in UK, but there is a challenge of disparity in FS Y/end with the main company Ryanair’co y/end 31 march 15 which is the latest F/S and the comparative coy Easy jet’co y/end F/S is 30 sep 2015 what would be your honest advice
1 considering the seasonal period that the comparative company E’co would have cover in it latest f/s i.e summer holiday period which will put it in a more favourable position
2 R’co report its currency in euros while the latter is in pounds, would this affect my RAP in any way? because i’ve tried to look for another comparator but none is close in terms of route & destination, market share, revenue, operational cost, fleet and customer base
3 tips on what to look out for on airline strategic operation, promotion and marketing that would aid quality RAP e.g holiday packages and other services.
Thanks in advance.

[abolorelegacy]

i think ACCA has got this wrong, what is the essence of taking away question paper in the exam hall without making it available/ accessible online? after all we pay for these exams! so why deny us of right to have access to those materials? how do ACCA then justified the used of our annual subscription? i think ACCA should practise what they preach, by becoming more open, and accountable by providing audited annual financial report. i want to believed this policy is geared towards saving cost and this is not in any way to the benefit of the student.
This singular policy itself would further add to the plight of student towards exam preparation, and would also prevent us from carrying out post examination assessment of how individual student perform.
i hereby called on ACCA to reverse this policy and make available relevant resources that would aid the progress of ACCA student

[abolorelegacy]

@trephena thank you so much for this piece of info, it was indeed an eye opener.

[abolorelegacy]

@trephena thanks for your swift response, so in a nutshell i should stick with M & S? and i’m wondering if one comapny is sufficient as a comparator or 2 company will be ok?
best regards!

[abolorelegacy]

@trephena i’m writing on T8 for nov submission and i have chosen sainsbury as the main company but not quite sure of the comparator i would have settle for tesco but because of the scandal with the overstatement of f/s, so i’m looking at using Mark&spencer as closest rival or comparator but my concern is the clothing segment for m&s is this appropriate as sainsbury does not have any clothing line at the moment?
thanks in advance for your insightful opinion.

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