Wits Integrated Experience in Science, Engineering and Commerce 2019 8th March 2019
Wits University has been approached to carry out a preliminary air crash investigation related to a recent disaster. The University is inviting scholars to assist in this investigation and to present their findings at a special hearing Ayesha Sayed
Why do companies go public ? Ayesha Sayed
The objective of a listed firm is to maximize shareholder value Ayesha Sayed
How profitable are airline companies? Ayesha Sayed
Ayesha Sayed
Ayesha Sayed
Ayesha Sayed
Debt, Bankruptcy and the Costs of Financial Distress “..in the past 20 years, around 200 airline companies have filed for bankruptcy protection.” Ayesha Sayed
Ayesha Sayed
What causes the stock market to react? Ayesha Sayed
“Empirical work in the late 1980's established that serious commercial air crashes cause the involved airlines to lose market value. However, the reason for the loss remains unclear. Possibilities include expectations of adverse consumer reaction, increased regulatory surveillance, and/or higher insurance premiums. If consumers infer from a crash that the crash airline's safety performance has declined, they may respond by switching to competing airlines. This is the crux of the product market response, as opposed to the financial market response. Expected lost revenue then causes a stock price decrease for the crash airline. ” Source: Eckard (1998) The Competitive Impact of Air Crashes: Stock Market Evidence Ayesha Sayed
Ayesha Sayed
Who are the other stakeholders in the aviation industry? Ayesha Sayed
Links 1. http://fortune.com/2017/05/03/airline-profit-baggage-fee/ 2. https://www.frbsf.org/economic-research/publications/economic- letter/2002/january/competition-and-regulation-in-the-airline-industry/ 3. https://www.statista.com/statistics/232513/net-profit-of-commercial-airlines-worldwide/ 4. https://www.statista.com/statistics/193533/growth-of-global-air-traffic-passenger- demand/ 5. https://www.consultancy.uk/news/13588/the-10-most-profitable-airlines-of-the-globe 6. https://www.insidermonkey.com/blog/11-most-profitable-airlines-in-the-world-will-it- last-376243/ 7. http://web.mit.edu/airlines/analysis/analysis_airline_industry.html 8. https://www.iafrica.com/saa-secures-r3-5bn-to-keep-it-afloat-until-june-still-needs-more/ 9. https://www.msn.com/en-za/money/news/saa-aims-to-break-even-in-2021-despite-the- projected-r72bn-loss-in-next-two-years/ar-BBTM025?li=BBqfZdL 10. https://www.bloomberg.com/news/articles/2014-12-29/airasia-shares-drop-in-pre- market-trading-after-flight-vanishes Ayesha Sayed
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