Audit Industry Report - Airlines Essay Example | Topics and Well Written Essays - 1500 words

Audit Industry Report - Airlines - Essay causeAs a comparison between two respiratory tracts, higher performance may just non be a measure of a better unit revenue as for many, the airliner may be facing a higher unit cost in contrast to others operating within the akin industry. In parallel to all these factors, capital available for growth or horizontal and vertical integrating of services is similarly a key factor to the industrys long term advantage (Taneja, 1987).Many achieverful airliners may have to prefer long term gains and profits to measure their success and would plan to expand or integrate over a longer period of time. Specifically for the airline industry, growth may be accounted for in terms of the capacity for growth. Datamonitor.com (2007) reports that the United States airlines industry grew by more(prenominal) than 8 percent in 2006 which placed it at a combined value of more than $ cxlv Billion. However, In order to grow, an airline and the industry itse lf would need more funding. The need for funding will be directly correlated to the performance of the company, as capital is generated form investors and for most equity investors, the airline may have to show growth in its equity over time.Moreover, apart the airline must also be a viable interest to the debt investors. For this to happen, and to conform with the debt investors, a more than reasonable ratio of debt-to-asset is required. isolated from the management on these direct factors that influence investment, there are several other key factors that run a carriage a turning role in raising capital for the airline industry and more focus is placed on international expansion. To wage international expansion into the equity of an airline, a risk judicial decision factor has to be incorporated in the financial sheet of the airlines in such a way that it has to reflect more associated risks such as currency risks or political risks. These forms of risks are more withdraw