This assignment will be based on real data which can be taken primarily from the annual reports of Ryan Air and Easy Jet for the 3 years ended 2011 – 2012 (or latest available).
Full copies of the Annual Financial Reports can be accessed through their web pages.
Over the last decade the airline industry has seen a marked shift in the popularity of Low Cost Carriers (LCCs). Ryan Air and Easy Jet are two of the most popular LCCs operating in the European market.
You have been hired as a consultant to the industry to analyse the financial status of these airlines and to communicate your findings in a formal written report to the Head of the Aviation Executive Committee.
Your report should focus on the profitability, efficiency, liquidity, and gearing of both LCCs and to conduct a comparative analysis.
The report should include a detailed analysis and assessment of the financial performance over the three year period using ratio analysis and horizontal common size (2009-10 as base) and vertical common size analysis on the Statement of Financial Position only (using total assets as a base).
Your findings should be submitted in a formal report with well founded conclusions and recommendations.
You should state any assumptions made
Note: You are NOT required to comment on the investment performance of the group.