Given the high levels of operating and financial leverage China Southern employs, a small change in revenue could lead to a large swing in profits.The Chinese government controls a number of would-be operating decisions for Chinese airlines, including new route allocation, aircraft purchases, and
We estimate that Continental's total operating costs excluding fuel and one - time charges were roughly 20 % higher than its legacy peers during 2009 as measured on an adjusted seat - mile basis . The legacy carrier's mainline nonfuel cost per available seat mile is significantly higher than that
With a debt / capital ratio of 0 . 80 , United relies extensively on debt to fund its operations . Due to the current market tightness , this reliance will most likely increase future borrowing costs and possibly limit United's future growth plans . Price competition from low - cost carriers and
Under the merger agreement , Air France - KLM has granted certain assurances to governments regarding minimum service levels at major airports . This could make the firm less flexible in response to dynamic market conditions . The Netherlands and France have complex work laws that are not entirely
China Eastern has recorded only one year of net profit during the last five years. Dramatic financial improvements are required to justify any equity value at all for China Eastern shareholders.China Eastern's numerous investments in affiliates, joint ventures, and majority-owned firms are
China Southern's bottom line should improve as jet fuel prices remain below the highs of 2008.
With a debt/capital ratio of 0.80, United relies extensively on debt to fund its operations. Due to the current market tightness, this reliance will most likely increase future borrowing costs and possibly limit United's future growth plans.Price competition from low-cost carriers and legacy peers
Under the merger agreement, Air France-KLM has granted certain assurances to governments regarding minimum service levels at major airports. This could make the firm less flexible in response to dynamic market conditions.The Netherlands and France have complex work laws that are not entirely
Legacy carrier US Airways LCC reported difficult third-quarter results Thursday that were once again weighed down by the prolonged economic downturn. Our view remains that US Airways will struggle to compete with more efficient rivals, and thus we are comfortable with our fair value estimate. For
Legacy carrier Delta Air Lines DAL reported decent third-quarter results Thursday that continue to show the industry's impressive success in removing costs. However, we contend that the entire industry will face decreasing yields as it copes with a reticent return of premium-paying passengers.