FlyBe Financial Analysis

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  • 1. Flybe Group PLC Financial AnalysisULMS7012012 Is the domestic air travel boom over? ULMS 701 – Managing Financial Resources Report Module Leader: Dr. David Brookfield Student: Marco Rodolfo Marabese ID 200819669 - The Liverpool MBA Word Count : 1,996 (excluding Table of Contents, Captions, Footnotes, Appendixes and References)
  • 2. Flybe Group PLCFlybe Group PLCFINANCIAL ANALYSISTable of Contents1. Introduction .................................................................................................................... 22. Market and Competitors ............................................................................................ 33. Financial Analysis ......................................................................................................... 44. Value Drivers’s Analysis ........................................................................................... 115. Conclusions ................................................................................................................. 126. Appendixes ................................................................................................................ 167. Table of Figures ........................................................................................................ 198. References .................................................................................................................. 20 Page 1
  • 3. Flybe Group PLC1. Introduction December 10, 2010 was a crucial day in the history of Flybe1—a leading UK airline. Eight years after its establishment, the Exeter-based company announced its flotation at London Stock Exchange (LSE). The launch price of the company was 295p per share, with the global value of the business an estimated £215 million; just one day after flotation, shares rose in value by 16%, subsequently equating to 341.25p with revenue of £60 million for the airline operator. An enthusiastic Jim French2, Chairman of the company, stated that, ‘The listing has given the business the platform to expand in continental Europe. It is a massive market. We are taking Flybe into Europe as a regional airline’ (Milmo, 2010b). The highly positive start promised a great future for the company as a leader in the UK’s top airline operators. Finally, the great investment of Jack Walker and his family was accomplished. However, after a few months, something went wrong: the shares’ value fell to 65p 3 with a loss of 78% following flotation. Subsequently, Jim French stated, ‘Im more frustrated than cross. Im frustrated for my staff and management who are delivering a great business but see the shares given a kicking by people who dont appreciate the complexities of this business’ (Osborne, 2011). Despite good results of Flybe in a doldrums market, the investors did not reward the business of the company. With this in mind, in an attempt to gain understanding, this report will analyse the historical record of the company and its position in the market, and will further assess the value drivers and financial company performance with the use of key performance indicators (KPIs) and key ratios. 1 Flybe Group PLC (styled Flybe) (LSE: FLYB). 2 Jim French is the Chairman and Chief Executive Officer of Flybe since its creation (2002). Considered one of the best managers in the airline industry, he was elected twice as “Airline Executive of the Year” (2002 and 2004) (source Flybe Corporate Media : http://www.flybe.com/corporate/media/management_team.htm). 3 Share price on October 6, 2011 (Osborne, 2011). Page 2
  • 4. Flybe Group PLC2. Market and Competitors Flybe is a leading UK airline company and, with over 6.7 million passengers in 2010, is the fifth most popular airline company in the UK (the third excluding Thomson Airways and Thomas Cook Airlines—two specialised charter companies)4. The company, born as Jersey European Airways in 1979, was re-branded in 2002 as Flybe (with ‘be’ representing British European), and accordingly changed its strategy and structure. In order to survive in a new competitive arena, the airline operator changed its model and became a low-cost regional airline based on the no-frills model, leveraging regional airports in Europe with a focus on the UK market. With this new model, Flybe was in strong competition with two major low-cost operators in the European market—Ryanair and EasyJet—as well as direct competitors represented by other UK no-frills and regional operators, such as Jet2.com, Monarch and Bmibaby. As defined by Jim French, ‘Ryanairs appeal is based on price. Ours is convenience’(Milmo, 2010b), meaning that the organisational strategy is concerned with a particular sector of the market and pursuing an affordable way to travel from the nearest regional airport. Proof of this strategy is the high number of UK airports served by the company (405), which makes the company one of the most widespread in the country. 4 According to Civil Aviation Authority (CAA) data (http://www.caa.co.uk) the total number of passengers (PAX) in 2010 was: EasyJet 42.4m (passengers); British Airways 29.7m; Thomson Airways 10.9m; Thomas Cook 8.1m; Flybe 6.7m. 5 As stated in Flybe Annual Report 2010-11(p. 3). Page 3
  • 5. Flybe Group PLC3. Financial Analysis This section will analyse Flybe’s performance compared with two major competitors: Ryanair6 and EasyJet.7. Despite a turbulent market8, Flybe has increased its year-by-year revenue during the last 4 years (with the exception of 2010). In actual fact, as can be seen from Flybe’s 2010 Annual Report, there was a decrease in turnover of 1% (Flybe, 2010); nevertheless, good performance was recognised during the financial year 2010–2011, which enabled the company to gain more than 4.4% in revenue9. Total Revenues (2008-2011) 600 590 580 570 560 £ Million 550 540 530 520 510 500 2008 2009 2010 2011 FLYBE Figure 1 - Flybe Total Revenues (2008-2011) 6 Ryanair (LSE: RYA) (http://www.ryanair.com) is an Irish low-cost airline based in Dublin. According to its 2011 Annual Report, it is “The World’s favourite Airline” with the highest number of international scheduled passengers. It is one of the most prominent low-cost company in the world and it is leader in Europe. It can be used as a benchmark inside the low-cost airline industry. 7 EasyJet (EasyJet Airline Company Limited) (LSE: EZJ) (http://www.easyjet.com/) is a British low-cost airline based in London Luton Airport. It is the second largest low-cost carrier with over 40million passenger in 2010 (Source: Civil Aviation Authority). Both with Ryanair represents one of the most successful low-cost model in Europe. For the financial year 2010-11 (ended on 30 September 2011) EasyJet published a short report of strong performances. 8 As stated in CNNMoney Special Report: Airline Turbulence (http://money.cnn.com/news/specials/airlines/) the sector is in one of the most difficult periods of its history due to several factors. 9 With an average annual increase of 3.64%, lower than the competitors average. Page 4
  • 6. Flybe Group PLC Revenue Increase (Decrease) Comparison (2008-2011) 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2008/09 2009/10 2010/11 -5.00% FLYBE RYANAIR EASYJET Figure 2 : Revenue increase (decrease) comparison (2008-2011)However, recent history suggests that the company has been struggling in the face of mountingcosts and increasing competitions. As can be seen from Figure 3, Flybe has faced a drasticdecline in terms of operating profit, experiencing a fall of 88% during 2008–2011, from £39.6million to £4.7 million (with a significant reduction of 52.3% in 2011). Furthermore, by analysingthe EBIT, the company can be seen to have incurred a loss of £4.3 million (2011) compared witha profit of £24.6 million the previous year (2010). Operating Profit (2008-2011) 45 40 35 30 25 £ Million 20 15 10 5 0 2008 2009 2010 2011 FLYBE Figure 3: Operating profit (2008-2009) Page 5
  • 7. Flybe Group PLCMoreover, taking into account the gross profits margin of Flybe for the years 2008–2011, theseare seen to be lower than competitors. Despite ratio stability, showing an average of 12.59%(lower in 2009 at a rate of 9.66%; higher in 2010 by 14.81%), Figure 4 shows that Ryanairand EasyJet have better margins10. Gross Margin Comparison (2008 - 2011) 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2008 2009 2010 2011 FLYBE RYANAIR EASYJET Figure 4: Gross Margin comparison (2008-2011)The situation is similar for the ‘Net Profit Margin’ ratio; this indicator has been drastically slashedto 0.77% in the accounting year 2010–2011, starting from 4.58% in 2010. During the sameperiod, Ryanair experienced an average of 10.3% 11.Despite the worsening of company performance, expectations of Flybe’s board were in-line withthe results, which is believed to be owing to a challenging condition for all airline operators 12. InFlybe’s case, several factors contribute to the low profitability of the business. First of all, theprice of fuel which, in February 2011, hit the record of $110 per barrel; the total cost of fuelincreased more than 6.8% during the last two financial years (from £86.6 million to £92.510 Ryanair 25,13%, EasyJet 14,48%.11 EasyJet 8.23%.12 As stated in Flybe Annual Report 2010-11. Page 6
  • 8. Flybe Group PLCmillion), with an average per-seat cost of £7.9713. In order to improve this situation, Flybeintroduced a fuel surcharge of £3.00 per passenger14. Net Profit Margin Comparison (2008-2011) 20.00% 15.00% 10.00% 5.00% 0.00% 2008 2009 2010 2011 -5.00% -10.00% FLYBE RYANAIR EASYJET Figure 5: Net profit comparison (2008-2011)Furthermore, ‘Aircraft ownership costs’—which include maintenance, insurance and otherexpenses—and ‘Net airport costs’—comprising route charges and control provider charges—both increased; in the first case, there was an increment of 14.4%, whilst in the second case, thepercentage was 4.3%. According to the Annual Report, these two items increased as a result ofexchange rate movements and increases in suppliers’/partners’ rates.However, despite a reduction of 1.3% during the last financial year (from £111.7 million to£110.3 million), staff costs represent one of the highest expenses to the company. The actualstaff is recognised as being made up of 2,949 people15 and, by analysing the ‘Revenue perEmployee’ ratio of the Exeter-based company, it can be seen that staff figures are lower by lessthan a half when compared with the other two competitors (not in line with a normal low-costcompany performance). Figure 6 shows the comparison with Ryanair and EasyJet during the last13 As stated in Flybe Annual Report 2010-11.14 As reported in BBC article (http://www.bbc.co.uk/news/uk-england-devon-13297311) (5 May 2011)15 Ryanair has 8,063 staff; EasyJet has 7,359. Page 7
  • 9. Flybe Group PLCfour years16. Furthermore, Return on Capital Employed (ROCE), is dropped to 2.13%, less thanRyanair (7.64%)17. Revenue per Employee comparison (2008-2011) 500 450 400 350 300 250 200 150 100 50 0 2008 2009 2010 2011 FLYBE RYANAIR EASYJET Figure 6: Revenue per Employee comparison (2008-2011) ROCE comparison (2008-2011) 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2008 2009 2010 2011 FLYBE RYANAIR EASYJET Figure 7: ROCE comparison (2008-2011)16 In order to convert Ryanair’s revenue was used the exchange rate GBR/EUR 1.1546 (average exchange rate inpast four years). EasyJet performance cannot be evaluated in Financial Year 2010-11.17 In the financial year 2009-2010 this ratio was in line with competitors. Page 8
  • 10. Flybe Group PLCDespite this, the liquidity of the company increased by 4% during the last four years (from 1.04to 1.09 using the acid test ratio, and from 1.09 to 1.12 using the acid test ratio). With this inmind, notably, liquidity was found to be in crisis during the financial year 2009–2010, with thevalue of the acid test ratio and current ratio below 1, thus causing liquidity problems.In comparison with competitors, is it possible to notice that Flybe liquidity is lower than EasyJetand Ryanair. This means that the company cannot convert quickly its assets in cash and hadmajor problem in a market shaped by crisis. Current Ratio comparison (2008-2011) 2.50 2.00 1.50 1.00 0.50 0.00 2008 2009 2010 2011 FLYBE RYANAIR EASYJET Figure 8: Current ratio comparison (2008-2011) Page 9
  • 11. Flybe Group PLC Acid Test ratio comparison (2008-2011) 2.50 2.00 1.50 1.00 0.50 0.00 2008 2009 2010 2011 FLYBE RYANAIR EASYJET Figure 9: Acid test ratio comparison (2008-2011)Finally, gearing ratio is in line with competitors and, during the last financial year, Flybeimproved this ratio. Gearing ratio comparison (2008-2011) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2008 2009 2010 2011 FLYBE RYANAIR EASYJET Figure 10: Gearing ratio comparison (2008-2011) Page 10
  • 12. Flybe Group PLC4. Value Drivers’ Analysis As can be seen from the previous analysis, Flybe business is at a difficult stage. Accordingly, in order to understand and compare the company’s performance alongside its competitors, this section will focus on value drivers affecting the business of the Exeter-based airline operator; these will be compared with the two major UK airlines companies (British Airways and EasyJet), as well as two of the major UK low-cost airlines with a business similar to Flybe (Jet2.com and Monarch)18. The first driver—which is recognised as being the most important to an airline company—is the ‘load factor’, which is the proportion between ‘Seat-Km Available’ and ‘Seat-Km Used’; the higher the ratio, the better the company performance. According to CAA, during the period 2006–2010, the load factor of Flybe decreased from 63.32% to 60.97%, but remained stable during 2009–2010, with an average of 60.80%. Load Factor (Trend 2006 - 2010) 90.00% 85.00% 80.00% 75.00% 70.00% 65.00% 60.00% 55.00% 2006 2007 2008 2009 2010 BRITISH AIRWAYS EASYJET FLYBE JET2.COM MONARCH Figure 11 : Load Factor Trend (2006-2010) 18 In this section data from Civil Aviation Authority (CAA) were analysed (see ‘References’). All indicators were calculated from tables provided by the CAA (see ‘Appendixes - Civil Aviation Authority Data Analysis’). Page 11
  • 13. Flybe Group PLCComparing these data with competitor performance, it can be seen that, notwithstanding aturbulent market, British Airways consolidated an average 76.6% in the years 2006–2010.With this in mind, it can also be seen that all the other no-frills operators that have beenanalysed have also experienced a ratio increase. Importantly, all three of these companies havea load factor close to 85%—25% more than Flybe’s poor performance19. In order to obtainbetter performance and reduce costs, it is necessary to increase this ratio and to attempt tocapitalise on all the ‘Seat-Km’ available. Moreover, comparing the ratio with low-costcompetitors, it is necessary to ensure improvement.Another value driver is the ‘Average Yield per Revenue Passenger Kilometre (RPK)’. Flybe’s yieldper RPK has improved, increasing by 20% between 2007 and 2010; notably, however, it fellby 2% between 2009 and 2010. The increase between 2007 and 2010 is the greatest risecompared with other competitors20. Average Yield per Revenue Passenger Kilometre (2007-2010) £0.180 £0.160 £0.140 £0.120 £0.100 £0.080 £0.060 £0.040 £0.020 £0.000 2007 2008 2009 2010 BRITISH AIRWAYS PLC EASYJET AIRLINE COMPANY LTD FLYBE LTD JET2.COM LTD MONARCH AIRLINES Figure 12: Average Yeld per Revenue Passenger KilometreA similar situation can be seen in terms of the ‘Average Yield per Revenue Passenger KilometreAvailable (RPKA)’. In consideration to this ratio, Flybe improved during the years 2007–2010,19 In actual fact, EasyJet’s load factor grew by 2.98%, Monarch’s by 3.17%, and Jet2.com’s by an extraordinary9.07%.20 According to Civil Aviation Authority data, during the same period, British Airways and Jet2.com’s yield per RPKgrowth were 3% whilst Monarch’s was 15%. Page 12
  • 14. Flybe Group PLCalthough this improvement is lower than for the previous ratio. Markedly, all other companiesanalysed were found to have performed better than the previous ratio during this period; this isstrictly in terms of the relationship with the load factor, whereupon all companies increased thisratio and their ability to maximise their turnaround per passenger. Furthermore, it should also benoted that Flybe maintained the highest yield in this cluster21. Average Yield per Revenue Passenger Kilometre Available (2007-2010) £0.120 £0.100 £0.080 £0.060 £0.040 £0.020 £0.000 2007 2008 2009 2010 BRITISH AIRWAYS PLC EASYJET AIRLINE COMPANY LTD FLYBE LTD JET2.COM LTD MONARCH AIRLINES Figure 13: Average Yeld per Revenue Passenger Kilometre AvailableWhat is alarming is that this high yield is also related to high costs. Considering the ‘AverageCost Passenger Kilometre’, Flybe’s ratio growth was 16% during 2007–2011. Importantly, thisindex is the highest in the cluster—almost double than competitors—with a value of £0.10(2010)22.21 With an average annual increase of 3.64%, lower than the competitors average.22 The best performance is from Monarch, which shows only 3.6p per seat per kilometre. Page 13
  • 15. Flybe Group PLC Average Cost Passenger Kilometre (2007-2010) £0.120 £0.100 £0.080 £0.060 £0.040 £0.020 £0.000 2007 2008 2009 2010 BRITISH AIRWAYS PLC EASYJET AIRLINE COMPANY LTD FLYBE LTD JET2.COM LTD MONARCH AIRLINES Figure 14: Average Cost Passenger KilometreAccording to the aforementioned ratios, the business model of Flybe cannot be completelyconsidered a low-cost model: despite the company’s attempts to cut costs, these remain too high.Markedly, during a period of market crisis, maintaining this structure it is considered risky. Page 14
  • 16. Flybe Group PLC5. Conclusions Although it is clear that Flybe continues to build a good name and reputation as a reliable airline operator, it is also clear that measures will need to be taken to kick-start improvements for 2012. The first factor known to have shaped the decline of the company concerns the present situation in the UK domestic market, which shows a negative trend across the industry owing to the economic crisis and, as a result, companies like Ryanair and EasyJet are having to scale down their domestic routes within the UK23. The second factor is the increasing power of substitutes. Between 2007 and 2010, the number of passengers reported was seen to fall by 22%24,with the main beneficiary of this reduction train and coach operators. As stated by ATOC, ‘In what is a highly competitive market, better services and more cheap tickets are encouraging more and more people to choose rail to travel between the UKs main cities’ (Milmo, 2011). In my view, in order to achieve a better position in the future, Flybe needs to improve its cost model, which can be achieved over the course of three steps: the first is renewing its fleet with new, more efficient aircrafts, which has been implemented by the organisation, as can be seen from the order of 105 new aircraft; the second step is continuing in its staff reductions so as to create a lean structure within the company; and the third is expanding into the rest of Europe through the purchase of other carriers, or otherwise through creating solid alliances with other low-cost airlines that serve secondary or regional airports. Essentially, only with the implementation of these three stages can Flybe survive in the future and maintain its leadership as ‘regional operator’. Nevertheless, exporting the domestic model outside of the UK represents a significant challenge for the British carrier. 23 As stated in Milmo’s article on “The Guardian” (http://www.guardian.co.uk/business/2011/nov/09/flybe-says- domestic-air-boom-is-over) 24 From 48.7 million to 38 million. Page 15
  • 17. Flybe Group PLC 6. Appendixes Financial Ratios Gross Margin 2008 2009 2010 2011 FLYBE 12.35% 9.66% 14.81% 13.55% RYANAIR 31.41% 17.02% 26.16% 25.92% EASYJET 12.44% 10.20% 17.11% 18.19% Net Profit Margin 2008 2009 2010 2011 FLYBE 6.51% 0.71% 4.58% 0.77% RYANAIR 14.40% -5.75% 10.22% 10.32% EASYJET 4.17% 3.31% 2.43% 8.23%Return on Capital Employed ratio 2008 2009 2010 2011 (ROCE) FLYBE 25.05% 13.78% 7.07% 2.13% RYANAIR 11.49% 2.88% 6.68% 7.64% EASYJET 4.75% 1.34% 6.84% -Return on Total Assets (ROTA) 2008 2009 2010 2011 FLYBE 9.59% 0.03% 7.45% -1.04% RYANAIR 6.94% -2.83% 4.51% 4.90% EASYJET 3.55% 1.49% 3.85% Acid Test Ratio 2008 2009 2010 2011 FLYBE 1.04 0.97 0.72 1.09 RYANAIR 1.53 1.84 1.98 1.89 EASYJET 1.55 1.40 1.42 - Page 16
  • 18. Flybe Group PLC Current Ratio 2008 2009 2010 2011 FLYBE 1.09 1.01 0.75 1.12 RYANAIR 1.53 1.84 1.98 1.89 EASYJET 1.55 1.40 1.42 - Revenue per Employee (£000) 2008 2009 2010 2011 FLYBE 184.98 201.61 173.16 168.40 RYANAIR 446.68 400.07 368.03 389.87 EASYJET 326.79 322.61 326.36 - Gearing Ratio 2008 2009 2010 2011 FLYBE 41.61% 40.01% 35.93% 27.31% RYANAIR 35.85% 40.45% 41.85% 44.26% EASYJET 29.27% 35.49% 35.91% - Civil Aviation Authority Data Analysis Yeld Passenger Km RPK 2007 2008 2009 2010BRITISH AIRWAYS PLC £0.068 £0.070 £0.074 £0.070EASYJET AIRLINE COMPANY LTD £0.060 £0.060 £0.059 £0.060FLYBE LTD £0.139 £0.166 £0.171 £0.167JET2.COM LTD £0.055 £0.053 £0.058 £0.057MONARCH AIRLINES £0.036 £0.038 £0.040 £0.041 Yeld Passenger Km (Available) 2007 2008 2009 2010BRITISH AIRWAYS PLC £0.052 £0.053 £0.056 £0.055EASYJET AIRLINE COMPANY LTD £0.049 £0.049 £0.048 £0.050FLYBE LTD £0.088 £0.103 £0.107 £0.102JET2.COM LTD £0.043 £0.039 £0.046 £0.047MONARCH AIRLINES £0.030 £0.031 £0.034 £0.035 Page 17
  • 19. Flybe Group PLC Avarage Cost Passenger Km (Available) 2007 2008 2009 2010BRITISH AIRWAYS PLC £0.048 £0.047 £0.057 £0.056EASYJET AIRLINE COMPANY LTD £0.045 £0.045 £0.046 £0.049FLYBE LTD £0.087 £0.101 £0.109 £0.101JET2.COM LTD £0.043 £0.042 £0.043 £0.046MONARCH AIRLINES £0.029 £0.031 £0.033 £0.036 Load Factor 2006 2007 2008 2009 2010BRITISH AIRWAYS PLC 76.75% 75.81% 74.75% 78.28% 77.69%EASYJET AIRLINE COMPANY LTD 81.47% 81.44% 82.67% 83.22% 84.46%FLYBE LTD 63.32% 61.34% 63.57% 60.62% 60.97%JET2.COM LTD 77.25% 73.57% 79.38% 81.65% 86.32%MONARCH AIRLINES 82.04% 82.56% 83.60% 83.61% 85.21% Page 18
  • 20. Flybe Group PLC7. Table of Figures Figure 1 - Flybe Total Revenues (2008-2011).............................................................. 4 Figure 2 : Revenue increase (decrease) comparison (2008-2011) ........................... 5 Figure 3: Operating profit (2008-2009) ....................................................................... 5 Figure 4: Gross Margin comparison (2008-2011) ....................................................... 6 Figure 5: Net profit comparison (2008-2011) .............................................................. 7 Figure 6: Revenue per Employee comparison (2008-2011) ...................................... 8 Figure 7: ROCE comparison (2008-2011) ..................................................................... 8 Figure 8: Current ratio comparison (2008-2011) ......................................................... 9 Figure 9: Acid test ratio comparison (2008-2011) ................................................... 10 Figure 10: Gearing ratio comparison (2008-2011) ................................................. 10 Figure 11 : Load Factor Trend (2006-2010).............................................................. 11 Figure 12: Average Yeld per Revenue Passenger Kilometre .................................. 12 Figure 13: Average Yeld per Revenue Passenger Kilometre Available ............... 13 Figure 14: Average Cost Passenger Kilometre .......................................................... 14 Page 19
  • 21. Flybe Group PLC8. References Annual Reports EasyJet. (2011). ‘Results for the year ended 30 September 2011’. Easyjet Airline Company LTD. Available from: <http://corporate.easyjet.com/media/latest-news/news-year- 2011/~/media/Files/E/Easyjet-Plc-V2/pdf/media/latest-news/2011/15-November-easyJet- plc.pdf>. [Accessed December 21, 2011]. EasyJet. (2008). ‘EasyJet Annual Report 2007-08’. Easyjet Airline Company LTD. Available from: <http://2008annualreport.easyjet.com/files/pdf/Full_Report_easyJet_AR08.pdf>. [Accessed December 21, 2011]. EasyJet. (2009). ‘EasyJet Annual Report 2008-09’. Easyjet Airline Company LTD. Available from: <http://2009annualreport.easyjet.com/files/pdf/Full_Report_easyJet_AR09.pdf>. [Accessed December 21, 2011]. EasyJet. (2010). ‘EasyJet Annual Report 2009-10’. Easyjet Airline Company LTD. Available from: <http://2010annualreport.easyjet.com/files/pdf/Full_Report_easyJet_AR10.pdf>. [Accessed December 21, 2011]. Flybe. (2008). ‘Flybe Annual Report 2007-08’. Flybe Group PLC. Available from: < http://www.flybe.com/pdf/annual_report/2007-08.pdf >. [Accessed December 21, 2011]. Flybe. (2009). ‘Flybe Annual Report 2008-09’. Flybe Group PLC. Available from: < http://www.flybe.com/pdf/annual_report/2008-09.pdf >. [Accessed December 21, 2011]. Flybe. (2010). ‘Flybe Annual Report 2009-10’. Flybe Group PLC. Available from: < http://www.flybe.com/pdf/annual_report/2009-10’.pdf >. [Accessed December 21, 2011]. Flybe. (2011). ‘Flybe Annual Report 2010-11’. Flybe Group PLC. Available from: < http://www.flybe.com/pdf/annual_report/2010-11.pdf>. [Accessed December 21, 2011]. Page 20
  • 22. Flybe Group PLCRyanair. (2008).‘Ryanair - Annual Report 2008’. Ryanair LTD. Available from:<http://www.ryanair.com/doc/investor/2008/Annual_Report_2008_Final.pdf>. [AccessedDecember 22, 2011].Ryanair. (2009).‘Ryanair - Annual Report 2009’. Ryanair LTD. Available from:<http://www.ryanair.com/doc/investor/2009/Annual_Report_2009_Final.pdf>. [AccessedDecember 22, 2011].Ryanair. (2010).‘Ryanair - Annual Report 2010’. Ryanair LTD. Available from:<http://www.ryanair.com/doc/investor/2010/Annual_report_2010_web.pdf>. [AccessedDecember 22, 2011].Ryanair. (2011).‘Ryanair - Annual Report 2011’. Ryanair LTD. Available from:<http://www.ryanair.com/doc/investor/2011/Annual_Report_2011_Final.pdf>. [AccessedDecember 22, 2011].Civil Aviation Authority DataCAA – Aviation Statistics. (2010).‘CAA –Aviation Statistic’. UK Civil Aviation Authority. Availablefrom: < http://www.caa.co.uk/default.aspx?catid=80&pagetype=90>. [Accessed December22, 2011].Report used for the analysis:Airline Personnel Cost UK and Overseas - 2007;Airline Personnel Cost UK and Overseas - 2008;Airline Personnel Cost UK and Overseas - 2009;Airline Personnel Cost UK and Overseas - 2010;All Scheduled Services - 2007;All Scheduled Services - 2008;All Scheduled Services - 2009; Page 21
  • 23. Flybe Group PLCAll Scheduled Services - 2010;All Services - 2007;All Services - 2008;All Services - 2009;All Services - 2010;Major UK Airlines Individual Airline Balance Sheets 2007;Major UK Airlines Individual Airline Balance Sheets 2008;Major UK Airlines Individual Airline Balance Sheets 2009;Major UK Airlines Individual Airline Balance Sheets 2010;Major UK Airlines Individual Airline Profit and Loss Account 2007;Major UK Airlines Individual Airline Profit and Loss Account 2008;Major UK Airlines Individual Airline Profit and Loss Account 2009;Major UK Airlines Individual Airline Profit and Loss Account 2010;Major UK Airlines Individual Appropriation Accounts 2007;Major UK Airlines Individual Appropriation Accounts 2008;Major UK Airlines Individual Appropriation Accounts 2009;Major UK Airlines Individual Appropriation Accounts 2010;Size of UK Airlines by Available Capacity - 2007;Size of UK Airlines by Available Capacity - 2008;Size of UK Airlines by Available Capacity - 2009;Size of UK Airlines by Available Capacity - 2010;Total Scheduled and Non-Scheduled Services Operating and Traffic Statistics for the FinancialYears of Reporting Airlines 2007;Total Scheduled and Non-Scheduled Services Operating and Traffic Statistics for the FinancialYears of Reporting Airlines 2008; Page 22
  • 24. Flybe Group PLCTotal Scheduled and Non-Scheduled Services Operating and Traffic Statistics for the FinancialYears of Reporting Airlines 2009;Total Scheduled and Non-Scheduled Services Operating and Traffic Statistics for the FinancialYears of Reporting Airlines 2010;Other ReferencesArnott, S. (2010). Flybes $1.3bn order fuels hopes of airline recovery . The Indipendent. July21, 2010. Available from: <http://www.independent.co.uk/news/business/news/flybes-13bn-order-fuels-hopes-of-airline-recovery-2031192.html>. [Accessed December 16, 2011].BBC (2010). Flybe announces £850m Embraer plane order. BBC. July 20, 2011. Availablefrom: <http://www.bbc.co.uk/news/business-10693875>. [Accessed December 16, 2011].BBC (2011). Airline Flybe adding £3 fuel surcharge. BBC. May 5, 2011. Available from:<http://www.bbc.co.uk/news/uk-england-devon-13297311>. [Accessed December 16, 2011].CNNMoney (2011). ‘Special Report: Airline Turbulence’. CNNMoney. Available from: <http://money.cnn.com/news/specials/airlines/>. [Accessed December 16, 2011].Flybe Corporate (2011). Flybe Corporate Media. Flybe Group PLC. Available from: <http://www.flybe.com/corporate/media/management_team.htm>. [Accessed December 16,2011].Hawkes, A. (2010). Budget airline Flybe announces flotation. The Guardian. November 30,2010. Available from: <http://www.guardian.co.uk/business/2010/nov/30/airline-flybe-announces-flotation?INTCMP=SRCH>. [Accessed December 16, 2011].Milmo,D. (2010). Flybe floats high on the stock market and sets its sights on Europe. TheGuardian. December 19, 2010. Available from:<http://www.guardian.co.uk/business/2010/dec/19/flybe-jim-french>. [Accessed December21, 2011]. Page 23
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