An Intercontinental Comparative Financial Analysis Of Civil Aviation Business

Authors

  • Dr. Pramod Kumar Srivastava, Dr. Pushpendu Rakshit, Yogender Kumar, Vishal Kumar, Dr. C.K. Singh, Dr. Mohd. Afjal

Abstract

This study tries to measure the financial analysis of the airline business taking the top two Indian airlines companies, only SpiceJet and IndiGo are considered from India and companies operating in the similar model in the international scenario, such as Southwest Airlines, Delta Air, Air Asia and Singapore Airlines are compared together with focus on making the analysis better. For achieving the objectives of this study, return on equity has been calculated using DuPont analysis. The DuPont analysis measures operational ability of a firm (Sheela & Karthikeyan, 2012). Thus, the financial statements indicate the profitability and sustainability of the business. The analysis shows that in terms of operating profit percentage of sales, IndiGo has outperformed even its international peer, with the ratio at 34-40% in 2015-2018 as compared to next better company, Air Asia, which has ratio between 15-30%. Even in year 2019 where the ratio has declined in all the companies and IndiGo has remained at 24%, again the highest.

Published

2020-10-27

Issue

Section

Articles