Aegean vs Cyprus Airways

ALBA GRADUATE BUSINESS SCHOOL

COURSE:

Understanding The Business Environment

PROFESSOR:

Andreas Charitou

SUBJECT:

“AEGEAN AIRLINES VS CYPRUS AIRWAYS”

JANUARY 7th 2010, ATHENS

[pic] [pic]

PARGINOU MARINA-PETROULA

1) You were asked to identify the major factors/problems for the unsatisfactory, financial performance, (compared to the major competitor or over time). Examine in more depth each one of these major problems. [Apply the success framework and other relevant financial information for Cyprus Airways and competitor Aegean to answer the question. Need to estimate these financial ratios for both years compare and contrast results].

| | |Success framework | | | | |

| | |Summary results | | | | |

| | | | AEGEAN |CYPRUS AIRWAYS |

| | | |2007 |2008 |

|RETURN ON EQUITY (EBITDA/Sh Equity) |28% |27% |164% |90% |

|RISKINESS (Liab/total assets) |52,58% |51,54% |94,53% |93,61% |

|EFFICIENCY (revenues/assets) |1,37 |1,26 |1,21 |1,42 |

|PROFIT MARGIN (EBITDA/revenue) |0,1 |0,09 |0,07 |0,04 |

|QUALITY OF PROFITS (Oper cash flow/EBITDA)...