Contents

• Introduction 3
• Emirates at a glance 3
• Key facts of Aviation industry 4
• Competitive position of Emirates Airlines 5
• Financial audit of three companies 9
• Profitability Ratios 9
• Liquidity ratio 10
• Efficiency ratio 12
• Earnings per share ratio 12
• Business Environment 13
• Pest Analysis 13
• Political 13
• Economic 14
• Social 14
• Technological 14
• Porters Five Forces Analysis 14
• Threat of new entrants 14
• Power of suppliers 15
• Power of Buyers 15
• Threat of substitutes 15
• Rivalry among established companies 16
• An appraisal of the limitations of financial models and conventional analysis 16
• Conclusion 16
• Recommendation 17
• References 18
• Annexure 1: Income statement for Emirates Airlines 20
• Annexure 2: Income statement of Singapore Airlines 20
• Annexure 3: Income statement for Malaysian Airlines 21

Description

The airline industry is largely susceptible to unfavorable economic, financial and business situations which create confronts including traditionally ever rising fuel and labor costs (Wensveen, 2010). These costs create huge burden on the airline companies in terms of operating expenses. Unending doubts in the airline service environment have formed insightful interest in evaluating financial and business behavior of three major airline companies, namely, Emirates Airline, Singapore Airline and Malaysian Airline. The present mainly aims to evaluate the financial performance of Emirates Airlines by comparing with other competitors. Moreover, the business environment of Emirates airline will be analyzed with the help of Porter’s five forces analysis and PEST analysis.