AIRLINE CAPITAL NEEDS

The growth rate of the U.S. economy is slowing while inflation goes on. The fuel shortage, with its resultant price rise, has become a grave national concern. The airlines have moved into a less regulated environment, new discount fares have been introduced, load factors have been increased, and industry profits were high for a time. Air Transport Association research shows that the U.S. scheduled airline industry will need an average annual corporate return on investment (ROI) of 13-15 percent to meet a $90 billion capital requirement between 1979 and 1990. This consists of $83 billion for additional passenger aircraft and $7 billion for freighter aircraft. To support such an enormous financial need, the airlines must maintain a record of consistently adequate profit levels. It is the only means of generating the necessary internal funds and attracting outside capital. (Author)

• Record URL:
  • https://onlinepubs.trb.org/Onlinepubs/trcircular/230/230-010.pdf
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00978515
• Supplemental Notes:
  • Report of a Workshop sponsored by the Committee on Aviation Demand Forecasting of the Transportation Research Board, held at the National Academy of Sciences, Washington, D.C., March 26-27, 1981. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Howard, L R
• Publication Date: 1981-8

Media Info

• Media Type: Digital/other
• Pagination: p. 20-22
• Serial:
  • Transportation Research Circular
  • Issue Number: 230
  • Publisher: Transportation Research Board
  • ISSN: 0097-8515

Subject/Index Terms

• TRT Terms: Aviation; Financial capital; Specifications
• Uncontrolled Terms: Requirement
• Subject Areas: Aviation; Highways; Planning and Forecasting; I10: Economics and Administration;

Filing Info

• Accession Number: 00342094
• Record Type: Publication
• Files: TRIS, TRB
• Created Date: Dec 22 1981 12:00AM