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@bik123 i dont think there is seperate industry data available but u can the iata global airline data https://www.iata.org/whatwedo/Documents/economics/Central-forecast-end-year-2016-tables.pdf#
Along with global details of revenues costs and profits it also has net profit margins and rpk and ask growth rates of airlines on a regional basis.HI,
I am doing my RAP on T8 using American airlines and Delta airlines.Any tips regading my choice are welcome.I am having trouble finding the chairman and directors report for these companies. Trepena has suggested earlier reading them is useful so I am worried I’ll be at a disadvantage not having access to such reports.
I also want tips on referencing.For my first 650 words in my rap with introductions and the other headings I have not referenced anything.Now I realize this does not look good.Should I be worrying about this?Referencing seems like a complicated process as I am mosly relying on websites for collecting info and there is data that have no authors but the data is definitely correct and I’m not sure if its .Also,how strict are the word limits(e.g 1000 words for introductions,reasons for choosing…,research ques.,research objs…)…Do these limits need to be exact?
Thanks
Take a look on the investor relations section of their websites as (American filed accounts usually are just financial statements) and you may find them there.
They help with the SWOT.
Yes you need to reference well throughout. See the Open Tuition Ultimate Guide to referencing (all 3 parts) on our homepage http://www.opentuition.com/obu
It may seem complex but I have tried to simplify it. Quite simply if you don’t reference adequately you are likely to fail so you will be wasting GBP 250 in submitting !
Period 32 Comment 1.
Evaluation of information, analysis and conclusions
You have not used your comparator effectively. The point is not to discuss their performance or compare the two in absolute terms but to identify when ratios have moved in different directions which indicates differing internal management decisions as opposed to when they move in same direction which would suggest external factors at playAny suggestions on ensuring the above is not done. And what proportion of the fin analysis do u recommend shud include comparator analysis?
The main issue with evaluation in relation to the comparator is that it must be more than just commenting that one company outperformed the other and by how much (as this should all be obvious from the graphs). The comparator analysis should not be in a separate section after the analysis of the main company -it needs to be integrated. You then need to come up with proper reasons that account for the differences in the two companies’ results e.g. how factors from the SWOT and PEST have impacted and/or influenced management decisions.
I cannot give strict proportions of how much the comparator analysis should take up as it depends on each ratio. For some there will be more to discuss than for others.
@ch305 said:
In relation to below.. I see many problems with Emirates… Is the time left sufficient for the analysis if I move over to another company or topic perhaps?Still one month left, so it is possible if you dont have other time consuming commitments.
How can someone analyze an airline comparing on 3 years and than do comparator for 3 years again, all in 4500 words limit count which also include business analysis. is there any sample work to get an idea how it could be properly done?
how many ratio should ideally be enough in financial analysis?@saan – this is perfectly possible if you are sensible about word use.
1. The total word count is 7,500 within that limit it is immaterial how many words are within a section
2. Cut out anything superfluous: this includes telling the marker why you chose the topic in the report (save it for the SLS); talking about primary data (when you are only using secondary data) and repeating what the graphs say (good graphs show, so you don’t need to tell as well). Avoid citing lots of routine figures and percentages in the text, focus on significant differences.
3. Read through you work (or better still get a family member to read it) – if they find it difficult to sort out the muddle of numbers you are throwing at them -take it as a warning sign that your report is on the wrong track and if it is mot addressed you are likely to bore and make the marker suffer ‘death by numbers’
There used to be some exemplars on the OBU website but the University warns students not to use templates and samples from other students. Be very wary of mentors who give you prepared spreadsheets and templates for presentations for reports as many students using these end up as Academic Conduct Office cases and some end up with not just being failed but having to pay the GBP 550 penalty fee if they want to resubmit!
Thank you very much for the detailed response, your advice is invaluable.
I have read few samples just to get an idea what thesis look like, I hope this is not an issue.
I found Comparator’s role very difficult to understands. It seems to me that I am studying two companies which not only doubled the workload but also going to impact on the word count.
How many ratios do you think should be included as minimum?
If I am using a ratio from cashflow statement do i need to have an appendix for Cashflow statement like income statement and balance sheet.
@saan – As I said before it is a case of using the word count judiciously – anything that does not add value should be cut. In terms of passing and getting a good grade the evaluation and analysis is everything and therefore you do not take chances with it.
@amal3008 -yes as the marker needs to know where your figures are coming from.On comparator response by examiner, what I was able to understand is if both companies are going into the same result e.g. declining fuel costs for both of them, then no need to go in detail for comparator (due to external issue, fuel prices) BUT if main company’s fuel costs are declining and comparator’s increasing then there is a need to explain why comparator’s results are different?
Do you think this is a right interpretation?
Hi Saan,
To our knowledge, Trephena is away for a few days and while we dare not presume that we are on par with her, do allow us to toss our hat in the ring and provide a reply to that.
1) If both companies are experiencing the same results, should you go into the details? It depends how critical the item is. For example, both companies having low liquidity ratios, for airlines, that is relatively common due to the cash flow model whereby passengers pay upfront. Not too much to talk about. Relatively speaking, it doesnt heavily impact profits and performance either.
However, for declining fuel costs, it is a significant feature in the performance of any airline. There are areas to explore such as hedging and also how the company who did not hedge as much (and thus enjoys the current low prices) is using it’s advantage eg is it slashing prices and grabbing market share?
There are nuances within such a loaded item that even if both airlines are performing in a similar direction (ie margins are up due to lower fuel costs), we still think you should analyze it deeply.
Conclusion: When results are similar, your depth of analysis would depend on how critical that item is in explaining performance.
2) When there is a strong difference between the ratios of one company versus another, then yes, absolutely yes, you must analyze it deeply and explain why.
Hope this helps!
The Learning Luminarium
Hi,
Yes Trephena is such a nice person.
I am very grateful that you have responded in a timely manner and beautifully explained my inquiry. It is much more clear now.
Thank you very much.
while doing analysis, debt (borrowing and lease liabilities) have increased but interest expense reduces. shouldnt interest expense be in line with debt, since bonds and loans will have interest liability.
Also, my mentor insists me on using investor ratios, but i cant find any, since emirates airlines is not a listed company. is there any investor ratio that could be analysed well and does not include share price or number of shares.
if i dont use any investor ratio, will it affect my grade. i have already crossed the word limit and cant use any KPI (revenue passenger km, yield, etc) as well.
@amal – while it generally should move in the same direction, it is possible for overall debt to increase, yet have interest expense reduce. This would be due to the interest rates of the new/refinanced debt being lower than the initial ones.
Investor ratios – In our experience, we have found them to be good but optional. For those with word limitations, we have usually guided them to focus more on the ratios that explain underlying performances – profitability, gearing, liquidity and efficiency.
With due respect to your mentor though, he knows your report and situation much better than us so I suggest you discuss this further with him to understand the rationale for his suggestion.Thanks a lot for your prompt advice. i will follow your advice and enquire with my mentor as well. However i found most of OT advices more useful than my mentor’s.
Hello everyone and Learning Luminarium
Bit of an odd one here. My mentor has gone MIA on me after two meetings. With just a few weeks left I am meant to be doing my presentation as my RAP is done. Any ideas on mentoring firms to approach ? or a mentor in mind? I really need to submit this May. Thank youJust a small clarification.
As per OBU information pack, which states that “If the company’s financial statement are published in any form less than 90 days before the start of submission do not have to be used”
The company which i have selected, there financials for 2016 were published on 6 march 2017, which equals to 70 days and which is less than 90 days
As result i did not waited till there financials were issued and I have used 2013, 2014 and 2015 financials.
As a confirmation is it correct what I have done as it would have been difficult for me to rap up every thing in two months.Thank you inn advance.
this might seem a bit odd…. i am comparing emirates with cathay pacific. Can i use short forms for these companies like EA and CP or Emirates and Cathay. i have crossed the word limit and this modification will save me about 100 words.
Hi, my company is Delta Airlines (main company) and American Airlines (competitor)
Can anyone tell me how will I be able to compare them two in terms of business analysis?I have used 2 models: PESTEL and Five Forces.
PESTEL would be same for both since macro-environmental factors would be same for them since they operate in the country (i.e- United States)
Five forces would also be the same
Only thing which would be different would be value chain analysis, M model, etc which I haven’t used.
Financial analysis would be simple as I have to explain significant differences in ratios between both companies but what to do in Business analysis comparison?
Thank you
@ahmadnip You would be correct as the statements were released less than 90 days from the start of the submission period. I would note this in my limitations or in my SLS just so the marker understands why you chose the years you did.
@amal3008 Emirates is commonly referred to as EK and Cathay as CX. As long as you have indicated clearly at the start of the report that Emirates Airlines will be referred to as EK and Cathay Pacific will be referred to as CX, there shouldn’t be much of a problem here.
@syfar42 A benchmark is really necessary for financial ratios because it helps you put the ratios in context. A benchmark is not usually needed for business analysis. It might sometimes be relevant because a competitor is a threat, or when you are looking at competitive rivalry in Porter’s 5 Forces. Other than that, you’re looking at Delta’s business analysis and not AA’s.Hope this helps!
Please advise whether we are required to use comparator in business analysis as well?
Thanks.
Dear @trephena,
In my choice of Ryanair and Easyjet, I am having problems getting the RRPK/ yeild as well as cost per RPK.
So i have chosen to calculate the Passenger yield,
using Total Passenger revenue/ RPKIs Easyjet’s Seat revenue equal to the Scheduled revenue of Ryanair ?
What is closest to Passenger revenue in both companies?
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