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Business

Airline Financial Strategies

Introduction

In the current recession and after long years of struggle to create profits, airlines need funding to re-organize their operations. Many authors have confirmed that the future of the aviation industry is bleak, due to the recession, insecurity of the fuel prices, the rise of operational costs and different fees imposed on the airlines based on their environmental impact. However, it is still possible to find airline companies that are able to set up a financial and operational strategy that is going to be proven to create better results and success. The responsibility is the financial and investment banking industry’s to carefully evaluate the specific airline’s risks, assets and profitability before providing finance for their plans. Reviewing the capital structures of the airline applying for funding would help banks reduce risks and negotiate deals according to the possible outcomes.