Aviation Finance Dissertation Example

Free Aviation Finance Dissertation Example

AVIATION FINANCE Name Professors’ Name Institution Affiliation City Date Operating and Pre-Tax Results Pre-tax operating income is to ensure the revenue generated about the expenses of the entity’s’ primary role. They are mainly referred to as earnings before interest and tax. In the financial year, 2016/2017 Singapore airlines recorded an operating income of 11.094.2million dollars which was a drop from the previous year’s generated revenue of 11.686.1 million dollars (Singapore Airlines Financial Statement for the year 2016/2017, 2018). This may be contributed to the increase in an award of programmed customers who upon the use of the airline and getting to hit a certain set target are bound to receive an award on the Kris Flier program. The program allows the customers to earn miles whenever they use the company. Customers have continued to take advantage of the program reducing the prices that they offer (Singaporeair.com, 2013). This could also be attributed to the lower revenue generated in the year 2016/2017 regarding external revenue which was at 10,134.2 million dollars compared to 2015/2016 at 10,633.8 (Singapore Airlines Financial Statement for the year 2016/2017, 2018). The drop was also recorded at 960 million dollars compared to the previous year which was 1052.3 million dollars (Singapore Airlines Financial Statement for the year 2016/2017, 2018). For Thai airlines, the company recorded deficient levels of net income due to an increase in the operating expenses and thus had a negative pretax operating income (Thai.listedcompany.com, 2017). Return on capital/investment and shareholders' funds Calculations for return on capital invested by the two airline companies will be given as; 45720023812400Net income- dividends Total capital employed The capital employed computation for a given fiscal year is presented as the working capital which is obtained by subtracting the current liabilities from the current asset. The amount...