THE AIRLINE INDUSTRY--AN ANALYSIS OF ASSET AND INVESTMENT MANAGEMENT 1959 TO 1990
Four basic steps are in this study. First, the historical record from 1959 to 1975 is examined then the return on assets, using pretax internal funds and the rate of investment, is examined. Second, the years 1967 to 1975 are simulated to determine how much investment the particular company should have made, when it should have occurred and the effect such a different level might have on earnings and return on assets. Third, using information from the historical and simulated history, the years 1976 to 1990 are projected to determine the investment capacity of the company. Fourth, each company's investment capacity is related to its needs. Three basic conditions underlie the tables prepared for this report. First, what actually happened, what might have happened had asset management been conducted differently in the past and, based on these results, what might reasonably be expected to happen in the future. Second, the capacity to invest is being measured not the actual level of investment any particular company will make. Third, the forecast model is a series of average years-no attempt has been made to factor in cyclical peaks and valleys.
- Prepared for the FAA Annual Forecast Conference, Washington, D.C., 8 December 1977.
Bache Halsey Stuart Shields IncorporatedBache Plaza, 100 Gold Street
New York, NY USA 10038
- Publication Date: 1977
- Features: Tables;
- Pagination: 6 p.
- TRT Terms: Airlines; Assets; Finance; Forecasting; Investments; Revenues
- Uncontrolled Terms: Financial management
- Subject Areas: Aviation; Finance;
- Accession Number: 00173857
- Record Type: Publication
- Files: TRIS
- Created Date: Sep 14 1978 12:00AM