The ratios will provide variants that will reflect any changes during the year covered. Variants are problems that need the attention of management. Ratios are also meaningful when compared with the closest competition to see relative position of the company Limitation of the study is that 2009 annual report of Easy jet is not yet available.
a. Government regulations. Falle, della Gonzrague, et al (2004) said in their report that the airline industry in UK has always been filled with restrictions to protect their own airlines. For instance, the airline industry in UK is protected by regulations of the European Union and that of bilateral agreements entered into by the British government with other countries. Bilateral agreements put tariff protection on their products and are barriers for foreign entry.
The globalization and liberalization have invited competition to the airline industry in UK. In UK, the airline industry players are the flag carriers, independent airiness, franchises and charters. Flag carriers are either state-owned or designated carriers and enjoy privileges from the government. Independent airlines are Ryan Air, Easy Jet, Aer Lingus and British Airways. Each of these airline companies has a market share of airline passengers in UK .
Even in economic crisis, air travel remains to be an important factor in everyday life of everyone. Air travel spurs the economy by bringing in international investment trade and tourism, and is therefore very important in the globalization movement of industries The Airline Industry report stated air travel in the past decade grew by 7% per year wherein travel for business and leisure grew strongly worldwide. Airline travel is dependent on the growth of economy, as in the years of recession; the industry is not spared... Several analysts agree that the airline operations have experienced hard times during the past years of 2007 an 2008
As a result of the slow travel