Key Concepts
For Aegean
Airlines, the annual report’s year ends 31 December, therefore the latest
annual statement for 2013 has not yet released. As such, these findings have
been based on the reports from 2009, 2010, 2011 and 2012.
Aegean Airlines has invested greatly into extending their
broad network of international routes. They worked towards international
expansion in 2012 by strengthen their market of Germany, France, Russia, Israel
and Belgium. While also incorporating new flights to Czech Republic, Hungary,
Ukraine and Georgia.
In just 2 years, the following routes were launched:
2011
§ Athens –
Moscow
§ Athens –
Bologna
§ Thessaloniki
– Moscow
§ Thessaloniki
– Paris
§ Larnaca –
London Heathrow
2012
§ Heraklion –
Moscow
§ Heraklion –
Brussels
§ Heraklion –
Munich
§ Corfu – Brussels
§ Corfu – Milan
§ Corfu –
Rome
§ Thessaloniki
– St Petersburg
§ Rhodes –
Moscow
§ Athens –
Budapest
§ Athens –
Prague
§ Athens –
Tbilisi
§ Athens –
Mariupol
Social
responsibilities are seen as an integrated part of Aegean Airlines’ rationale
and try to use them to convey their main values. They focus on a range of
aspects such as Culture, Education, Environment, Local communities and Tourism.
They sponsor a multitude of organizations
and programs such as:
Culture
Education
Local Communities
Tourism
Aegean Airlines also strives to have good relations with other airlines. In 2001, they formed a merger with Cronus Airlines and, in 2008, they formed a code-share agreement with Brussels Airlines. They joined the STAR ALLIANCE on 30th June 2010, as one of 28 currently affiliated airlines.
Questions
- Despite having the 'Goodwill' asset in 2004 & 2005, Aegean Airlines has not listed any 'Goodwill' assets in the years following. Why is this? Does it affect the firm? Does this mean they are not interested in selling the company so they don't calculate 'Goodwill'?
- Until 2012, the company had no listed 'Advances for investing activities'. What might have caused the change? Is this a positive or negative change for the company?
- Until 2012, the company also had no listed 'Long term liabilities'. Could the two be connected? What might be a reason for the sudden change?
- The 'Total Revenue' for the past 4 years have all been negative numbers. How does this affect the company? Is it a serious issue for the company? Or is this a regular occurrence that shouldn't be worried about?
- Are there any other students who have a company in the STAR ALLIANCE? If so, what are your thoughts on it? Do you think it's a good move for your company?
I personally believe STAR ALLIANCE is a
good opportunity for Aegean
Airlines to further their relationship with other airlines :)
Please tell
me your opinions or ideas on my KCQs or let me know your KCQs in the comments
:D
Hi Sarah,
ReplyDeleteI had a query about Goodwill as well for my KCQ's. Dheepa provided me with the following information which I found very helpful:
"A company pays for Goodwill when it acquires another company. That is when a company pays more than market value, how will they account for it? As goodwill is an intangible asset that contributes to the value of a company, the difference between market value and price actually paid is shown as asset in Balance sheet."
My Company China Eastern Airlines had Goodwill in one of their condensed statements specifically relating to their acquisition of Shanghai Airlines.
In terms of the Star Alliance I too think it is a good idea. CEA is a member of SkyTeam which is very similar. The only concern I can see with it is if a customer books through your company and then travels with another and receives substandard service then this might reduce the likelihood that they will book with you again sort of a guilty by association thing. Although I'm pretty sure this wouldn't be a massive problem.
Thanks a lot, Matt! That actually really helps me understand why they only had goodwill for a few years :)
DeleteThat's actually an interesting concern, I never thought of that :o
Thanks for your feedback :D