Page 1W2 A2: Part IIBalance sheet items Cimber Sterling Airline 20102009diffTotal non-current assets715,361798,120-82,759Total current assets253,315316,430-63,115Total Assets968,6761,114,550-145,874Total non-current liabilities259,043354,807-95,764Total current liabilities735,929572,599163,330Total liabilities994,972927,40667,566Norwegian Air Shuttle Total non-current assets610,120576,33033,790Total current assets200976154,76546,211Total Assets811,096731,09580,001Total non-current liabilities772,760102,674670,086Total current liabilities847,9601,103,290-255,330Total liabilities1,620,7201,205,964414,756Difference in assets157,580383,455Difference in liabilities625,748278,558 Total non-current assets Total current assets Total Assets Total non-current liabilities Total current liabilities Total liabilities Total non-current assets Total current assets Total Assets Total non-current liabilities Total current liabilities Total liabilities Total non-current assets Total current assets Total Assets Total non-current liabilities Total current liabilities Total liabilities 715361 253315 968676 259043 735929 994972 Total non-current assets Total current assets Total Assets Total non-current liabilities Total current liabilities Total liabilities 798120 316430 1114550 354807 572599 927406 Total non-current assets Total current assets Total Assets Total non-current liabilities Total current liabilities Total liabilities Total non-current assets Total current assets Total Assets Total non-current liabilities Total current liabilities Total liabilities Total non-current assets Total current assets Total Assets Total non-current liabilities Total current liabilities Total liabilities 610120 200976 811096 772760 847960 1620720 Total non-current assets Total current assets Total Assets Total non-current liabilities Total current liabilities Total liabilities 576330 154765 731095 102674 1103290 1205964 Page 2W2 A2: Part II ContinuedProfit and loss itemsNorwegian Air Shuttle total operating income and revenues$ 17,222,623.00net financial items$ (5,279.00)profit for the year$ (905,806.00)Cimber Sterling Airline total operating income and revenues$ 1,940,516.00net financial items$ (4,368.00)profit for the year$ (212,670.00) Norwegian Air Shuttle total operating income and revenues net financial items profit for the year Cimber Sterling Airline total operating income and revenues net financial items profit for the year Norwegian Air Shuttle total operating income and revenues net financial items profit for the year Cimber Sterling Airline total operating income and revenues net financ ial items profit for the year Norwegian Air Shuttle total operating income and revenues net financial items profit for the year Cimber Sterling Airline total operating income and revenues net financial items profit for the year Norwegian Air Shuttle total operating income and revenues net financial items profit for the year Cimber Sterling Airline tota.

1. Page 1W2 A2: Part IIBalance sheet items Cimber Sterling
Airline 20102009diffTotal non-current assets715,361798,120-
82,759Total current assets253,315316,430-63,115Total
Assets968,6761,114,550-145,874Total non-current
liabilities259,043354,807-95,764Total current
liabilities735,929572,599163,330Total
liabilities994,972927,40667,566Norwegian Air Shuttle Total
non-current assets610,120576,33033,790Total current
assets200976154,76546,211Total
Assets811,096731,09580,001Total non-current
liabilities772,760102,674670,086Total current
liabilities847,9601,103,290-255,330Total
liabilities1,620,7201,205,964414,756Difference in
assets157,580383,455Difference in liabilities625,748278,558
Total non-current assets Total current assets Total Assets
Total non-current liabilities Total current liabilities
Total liabilities Total non-current assets Total current
assets Total Assets Total non-current liabilities Total
current liabilities Total liabilities Total non-current
assets Total current assets Total Assets Total non-current
liabilities Total current liabilities Total liabilities 715361
253315 968676 259043 735929 994972 Total
non-current assets Total current assets Total Assets Total
non-current liabilities Total current liabilities Total
liabilities 798120 316430 1114550 354807 572599
927406 Total non-current assets Total current assets
Total Assets Total non-current liabilities Total current
liabilities Total liabilities Total non-current assets Total
current assets Total Assets Total non-current liabilities
Total current liabilities Total liabilities Total non-
current assets Total current assets Total Assets Total non-
current liabilities Total current liabilities Total liabilities
610120 200976 811096 772760 847960
1620720 Total non-current assets Total current assets

2. Total Assets Total non-current liabilities Total current
liabilities Total liabilities 576330 154765 731095
102674 1103290 1205964
Page 2W2 A2: Part II ContinuedProfit and loss itemsNorwegian
Air Shuttle total operating income and revenues$
17,222,623.00net financial items$ (5,279.00)profit for the
year$ (905,806.00)Cimber Sterling Airline total operating
income and revenues$ 1,940,516.00net financial items$
(4,368.00)profit for the year$ (212,670.00)
Norwegian Air Shuttle total operating income and revenues
net financial items profit for the year Cimber Sterling
Airline total operating income and revenues net financial
items profit for the year Norwegian Air Shuttle total
operating income and revenues net financial items profit
for the year Cimber Sterling Airline total operating income
and revenues net financ ial items profit for the year
Norwegian Air Shuttle total operating income and
revenues net financial items profit for the year Cimber
Sterling Airline total operating income and revenues
net financial items profit for the year Norwegian Air
Shuttle total operating income and revenues net financial
items profit for the year Cimber Sterling Airline total
operating income and revenues net financial items profit
for the year 17222623 -5279 -905806 1940516 -4368
-212670
Running head: FINAL PROJECT: WEEK ONE
1
PAGE
2
FINAL PROJECT: WEEK ONE
Final Project: Week One
Pauline Hurt
South University Online

3. Final Project: Week One
Norwegian Air Shuttle (NAS) dates back to 22nd of January
1993. It is the time when the company started to run services
previously provided by Braathens subsidiary Busy Bee of
Norway A/S. Initially, NAS had a small fleet consisting of
merely of three Fokker F- 50 aircraft, which could fly via
regional routes of Norway’s west coast, in close collaboration
with Braathens S.A.F.E (South- American & Far East). NAS has
undergone several transitions since its establishment in 1993
(Anger, 2010). For example, it established a Polish subsidiary
with two airplanes stationed at the Warsaw base in 2006.
Additionally, the company launched its full-scale online bank
services, ‘Bank Norwegian’, and frequent flyer program,
‘Norwegian Reward’. These were some of its products they
introduced to the market ahead of other airline companies. In
fact, the company ordered 42 Boeing 737 planes to be delivered
by 2014 (Becker, 1989). Norwegian Air Shuttle comprises of
the mother enterprise, NAS/ASA and other six
branches/subsidiaries located in Polish, Sweden, Denmark,
among other nations (Miller & Waller, 2003).
NAS owns the Swedish and Polish Branches, popularly known
as Norwegian Air Shuttle Sweden AB, and Norwegian Air
Shuttle also known as Polska SP (Morell, 2011). The parent
company owns 100% of the mobile phone company Call
Norwegian AS. Furthermore, Norwegian Air Shuttle ASA holds
100% of NAS Asset Management, where the mother enterprise
solely owns 99.9%, and the remaining 0.1% by NAS Asset
Management Norway AS (Anger, 2010). Finally, Norwegian Air
Shuttle ASA controls 20% Bank Norwegian AS. NAS is a listed
company on the Oslo Stock Exchange. Its largest shareholders
are private institutions, led by HBK Invest AS (27.48% of the
total shares). The CEO of NAS owns 77% of the HBK Invest
AS, therefore being the highest shareholder of the company
NAS.

4. NAS’s main competitors in the market are the peer group
companies. These are companies that that are similar to NAS
both in scale and scope, so they can accurately be related.
However, there exist no comparable companies regarding scale
and business strategy and geographical area. One of the peer
companies is the Nordic Airline though characterized by few
airlines compared to NAS (Miller & Waller, 2003). Cimber
Sterling and Finnair are among the peer group. They are the
leading Airline Companies in their home countries, Denmark,
and Finland respectively. Also, European’s low- cost carrier
Ryanair is part of the peer group companies.
Sweden Airline Services (SAS) is the largest airline in
Scandinavia, transporting over 27 million people to 128
destinations across 36 nations by 2010. SAS consists of
Scandinavian Airlines, Wideroe, and Blues Airlines. SAS has
acquired many airlines for the last few years, some of them
being Braathens and Wideroe in Norway (Becker, 1989).
Currently, just like NAS, SAS offers money product and
services to meet the needs of business travels in the regions of
Nordic. Even though its money products are far much different
from those of NAS, SAS can be attributed to the legacy carrier,
which fiercely competes with NAS on Norwegian and
Scandinavian routes.
Cimber Sterling is a huge airline company that operates and
competes with NAS for international routes. It is a Danish
airline, which transported over 2.6 million passengers in seven
domestic and 49 international routes by 2010 (Becker, 1989).
The company was started in 1950 when the pilot Ingolf L.
Nielsen acquired Sonderjyllands Flyveselskab, which later
emerged as the Cimber Air. The Nielsen family solely owned
Cimber Sterling, until 1998 when SAS acquired most of its
shares. However, the company bought back its shares from SAS,
taking it back to its original family owned business it initially

5. used to be.
Cimber Sterling major milestones date back in 2008 when the
company threatened the operations of NAS and SAS, through
modification, improvement and introduction of customer
databases and new brands. These were a profit time for the
market that has many competitors. Cimber Sterling’s business
models were based on serving three main market segments.
They include Denmark’s domestic routes for both business and
leisure travelers, flights to some European destinations such as
London and Paris for leisure and business travelers (Anger,
2010). Air travels to other destinations mostly preferred by
leisure passengers only, such as Mallorca and Gran Canaria
were also Cimber Sterling’s destinations.
The strategic position of Cimber Sterling is near that of NAS
and SAS. Therefore, it offers strict competition for both local
and international travels. Cimber Sterling main competitor is
Finnair Airline, founded in 1923 in England. The government
owns most shares in Finnair Airline, which controls 55.9% stake
(Becker, 1989). However, the company operates a minimum
financial interference policy. Finland’s capital Helsinki is the
where the company major its operations. By 2010, the company
had transported more than 7.5 million people to 14 and 51
domestic and international destinations respectively. The
company’s overall objective is to become number one operating
an airline in the Nordic countries, Europe, and Asia. Currently,
Finnair operates long distance travels between Europe and Asia,
making it the largest competitor for Cimber Sterling Airline
(Morell, 2011). Other major competitors for Cimber Sterling
Airline include Ryanair, NAS, and SAS.
There are several attributes considered when comparing airline
companies’ financial performances. The attributes arise from
the rules set by the government within regions where they
operate. Thus, airline companies arise from a different financial
form of reporting times. However, sources on airline financial

6. data indicate that NAS, SAS and Finnair operate within 1st of
January and 31st of December as their financial years (Anger,
2010). Ryanair reports on 1st of April to 31st of March, and
Cimber Sterling during 1st of May and 31st of April. Consider
Ryanair’s latest 31st of March and Cimber Sterling’s 31st of
April 2011 financial statements.
These financial details are comparable with other companies’
data for their full financial year 2010. Ultimately, occurrences
happening in the first quarter of 2011 will be present in
Ryanair’s and Cimber Sterling’s financial performance for
2010, but not for the other companies. Moreover, another issue
that may arise in comparing financial statements of different
airlines is the currencies used. That is, different airlines use
different currencies depending on their operating countries
(Morell, 2011).
Airlines’ Corporate Governance
Airline companies are committed to maintaining high standards
of cooperate governance. NAS company board continues to
review and effect cooperate governance of the company. In
doing so, every new and positive development in its subsidiaries
and its main office are noted and effected immediately (Miller
& Waller, 2003). The corporate governance practices described
in NAS largely apply in Cimber Sterling too. NAS board of
management is the chief cooperate governance of the company.
However, the board delegates some duties to managers in
subsidiary branches, who make decisions on behalf of top
managers (Becker, 1989). On the other hand, Cimber Sterling
cooperate governance is carried out by Company Managing
Directors. There is no managing board like the case in NAS.
Ultimately, however, cooperate governance in both cases
include duties that include among others: approval of budgets
and monitoring financial expenditure, approving both internal

7. and external company auditors, monitoring powers vested to
branch managers, and management of internal and external
market risks (Miller & Waller, 2003). Cooperate Governance in
NAS is independent. Therefore, decisions made by committee
members remain final. The cooperate governance consists of a
chair who is re- elected after serving for an agreed term and
directors selected and appointed by the company’s constitution.
Audit and risk management are the main roles of cooperate
governance (Anger, 2010). In so doing, the committee provides
assistance and guidance to the branch managers in fulfilling
their risk management practices in their subsidiary branches.
References
Anger, A. (2010). Including aviation in the European emissions
trading scheme: Impacts on the
Industry: CO₂ emissions and macroeconomic activity in the EU.
Journal of Air Transport
Management, Vol.16, pp. 100-105. Retrieved from
http://econpapers.repec.org/article/eeejaitra/v_3a16_3ay_3a201
0_3ai_3a2_3ap_3a100-
105.htm
Becker, H. (1989). Developing and Using Scenarios - Assisting
Business Decisions. The
Journal of Consumer Marketing, Vol. 6(4), pp. 41-50. Retrieved
from
http://www.acrwebsite.org/search/view-conference-
proceedings.aspx?Id=8085
Miller, K. D. & Waller, H. G. (2003). Scenarios, Real Options
and Integrated Risk

8. Management. Long Range Planning, Vol. 36, pp. 93-107.
Retrieved from
http://www.ingentaconnect.com/content/els/00246301/2003/000
00036/00000001/art0020
Morrell, P. (2011). Current challenges in a Distressed Industry.
Journal of Air Transport
Management, Vol. 17, pp. 14-18. Retrieved from
http://top25.sciencedirect.com/subject/social-
sciences/23/journal/journal-of-air-transport-
management/09696997/archive/31/