Wits Integrated Experience in Science, Engineering and Commerce 2019 - - PowerPoint PPT Presentation

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Wits Integrated Experience in Science, Engineering and Commerce 2019 - - PowerPoint PPT Presentation

Mar 28, 2024 133 likes •300 views

Wits Integrated Experience in Science, Engineering and Commerce 2019 8th March 2019 Wits University has been approached to carry out a preliminary air crash investigation related to a recent disaster. The University is inviting scholars to

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Wits Integrated Experience in Science, Engineering and Commerce 2019

8th March 2019

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Wits University has been approached to carry out a preliminary air crash investigation related to a recent disaster. The University is inviting scholars to assist in this investigation and to present their findings at a special hearing

Ayesha Sayed

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Why do companies go public?

Ayesha Sayed

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The objective of a listed firm is to maximize shareholder value

Ayesha Sayed

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How profitable are airline companies?

Ayesha Sayed

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Ayesha Sayed

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Ayesha Sayed

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Ayesha Sayed

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Debt, Bankruptcy and the Costs of Financial Distress

Ayesha Sayed

“..in the past 20 years, around 200 airline companies have filed for bankruptcy protection.”

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Ayesha Sayed

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What causes the stock market to react?

Ayesha Sayed

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“Empirical work in the late 1980's established that serious commercial air crashes cause the involved airlines to lose market value. However, the reason for the loss remains unclear. Possibilities include expectations of adverse consumer reaction, increased regulatory surveillance, and/or higher insurance premiums. If consumers infer from a crash that the crash airline's safety performance has declined, they may respond by switching to competing airlines. This is the crux

  • f the product market response, as opposed to the financial market
  • response. Expected lost revenue then causes a stock price decrease

for the crash airline. ”

Source: Eckard (1998) The Competitive Impact of Air Crashes: Stock Market Evidence

Ayesha Sayed

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Ayesha Sayed

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Who are the other stakeholders in the aviation industry?

Ayesha Sayed

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Links

1. http://fortune.com/2017/05/03/airline-profit-baggage-fee/ 2. https://www.frbsf.org/economic-research/publications/economic- letter/2002/january/competition-and-regulation-in-the-airline-industry/ 3. https://www.statista.com/statistics/232513/net-profit-of-commercial-airlines-worldwide/ 4. https://www.statista.com/statistics/193533/growth-of-global-air-traffic-passenger- demand/ 5. https://www.consultancy.uk/news/13588/the-10-most-profitable-airlines-of-the-globe 6. https://www.insidermonkey.com/blog/11-most-profitable-airlines-in-the-world-will-it- last-376243/ 7. http://web.mit.edu/airlines/analysis/analysis_airline_industry.html 8. https://www.iafrica.com/saa-secures-r3-5bn-to-keep-it-afloat-until-june-still-needs-more/ 9. https://www.msn.com/en-za/money/news/saa-aims-to-break-even-in-2021-despite-the- projected-r72bn-loss-in-next-two-years/ar-BBTM025?li=BBqfZdL 10. https://www.bloomberg.com/news/articles/2014-12-29/airasia-shares-drop-in-pre- market-trading-after-flight-vanishes

Ayesha Sayed