Essay about Comparative Financial Analysis of Easyjet & Ryanair

Words: 12754
Pages: 52

Comparative Financial Analysis of Ryanair & EasyJet for financial years ending
2010, 2011 and 2012.

Submitted by
Muhammad Sufyan Sadiq

CONTENTS
Chapter No. Topics Page No.
1 Executive Summary ----------------------------------------------------------------------
-------------- 3
2 Introduction ------------------------------------------------------------------------------- 6
3 PESTEL Analysis ------------------------------------------------------------------------ 9 3.1 EasyJet -------------------------------------------------------------------------- 9 3.2 Ryanair ------------------------------------------------------------------------- 12 3.3 Comparative Analysis
…show more content…
But EasyJet does not compromise on airport facilities and uses the expensive services of primary airports. This makes EasyJet the second best low fare airline in Europe, second to Ryanair. EasyJet has a wider customer base since it targets both leisure and business customers while Ryanair targets only leisure customers. Other than government laws like low carbon emission, sound reduction, passenger safety and security measures, there are competition legislations that restrict the activities of low cost airlines like Ryanair and EasyJet. The need is to always stay technologically up to date in regard to aircrafts so that the aircrafts are fuel efficient to deal to mitigate the risk arising out of rise in oil price in the international markets. This puts pressure on the low cost strategies adopted by Ryanair and EasyJet. Both the airlines are known for their operational efficiency and financial stability. Both the airlines have shown good financial performance, this means they can promptly meet all payment obligations to creditors and suppliers. Equity ratio for EasyJet has marginally increased in 2012 compared to the previous year and similarly for Ryanair in 2013. Efficiency ratio has increased in 2012 for both EasyJet and Ryanair which means they can make all