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Creating economic value in the US airline industry: are we missing the flight?

Creating economic value in the US airline industry: are we missing the flight? Prolonged periods of ineffective capital allocation and mismanagement destroy massive amounts of wealth and damage the economic wellbeing of the service and manufacturing industries. The purpose of this paper is to outlay the facts and figures that can illustrate the value destruction in the US airline industry for the period of 1990‐1999. The EVA analysis for the last decade of the millennium demonstrated that even when the US economy was prosperous, the airline industry failed to benefit from this favorable environment. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Contemporary Hospitality Management Emerald Publishing

Creating economic value in the US airline industry: are we missing the flight?

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0959-6119
DOI
10.1108/09596110410540267
Publisher site
See Article on Publisher Site

Abstract

Prolonged periods of ineffective capital allocation and mismanagement destroy massive amounts of wealth and damage the economic wellbeing of the service and manufacturing industries. The purpose of this paper is to outlay the facts and figures that can illustrate the value destruction in the US airline industry for the period of 1990‐1999. The EVA analysis for the last decade of the millennium demonstrated that even when the US economy was prosperous, the airline industry failed to benefit from this favorable environment.

Journal

International Journal of Contemporary Hospitality Management – Emerald Publishing

Published: Aug 1, 2004

Keywords: Airlines; Economic value added; Cost of capital

References

  • Airline Annual Report
    Air Transport Association
  • Airline Cost Index: Second Quarter 2002
    Air Transport Association
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    Biddle, G.C.; Bowen, R.M.; Wallace, J.S.
  • Valuation: Measuring and Managing the Value of Companies
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  • Airline Industry Viability
    Mullin, L.F.
  • Strategic Management in the Hospitality Industry
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  • Creating Shareholder Value: A Guide for Managers and Investors
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  • A unifying theory of value‐based management
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  • EVA and Value‐Based Management: A Practical Guide to Implementation
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