Financial Policy Project - Air Arabia and Gulf Airlines

In: Business and Management

Submitted By atiq746
Words 2230
Pages 9
Financial Policy Project - Air Arabia and Gulf Airlines
Name
University

Introduction
The project is based on the financial analysis of the two companies from the airline industry. The first company is Air Arabia and the second company is Gulf Airline. Air Arabia which was established by the King of Sharjah in the year 2003 is known as the best economic mode of air travelling in the United Arab Emirates. The company continued to provide economic and valued services to its customers through the last decade and has been successful in penetrating the Air traffic business. The company did not limit its operation only to the Arab countries but also expanded its business operations to the Europe and other parts of the world. The Air Arabia destinations not the Arab countries but also reached the European destinations like Casablanca and the Cairo.
The company believes in expanding its business operations and for this reason, it has established its subsidiaries airlines in the other Arab countries as well. The company is performing air travelling operations through its subsidiaries companies in Egypt and Morocco as well. The company today operates its flight to 88 destinations across the globe. The company planes lands on the destinations ranging from Arabia, Middle East, Asia to Europe and Africa. The company believes in offering comfortable and reliable journey for its passengers at the lowest possible fares and with this business strategy, millions of passengers have travelled through Air Arabia. The company believes in uplifting the community in which they are operating and they have invested reasonable amounts as part of corporate social responsibility.
The stock of the Air Arabia is being traded at a price of 1.470 AED. The company P/E ratio is expected to grow till the end of the financial year 2014 from 11.30 to 14.13. The company has outstanding shares of…...

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