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Airline capital structure and returns

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  • Fernandes, Elton
  • Capobianco, Heloisa Márcia Pires

Abstract

This article addresses performance, financial strategy and efficiency in the worldwide civil aviation industry. The sector's basic regulation and the need for large investment are characteristics of air transport industry. These resources are financed by the company's own capital and that of third parties. Bearing in mind the sector's high level of indebtedness, we have sought to identify companies which have adopted different financial strategies with consistently satisfactory financial performance. In these companies shareholders’ capital represents at least 40% of all funds employed.

Suggested Citation

  • Fernandes, Elton & Capobianco, Heloisa Márcia Pires, 2001. "Airline capital structure and returns," Journal of Air Transport Management, Elsevier, vol. 7(3), pages 137-142.
    • Handle: RePEc:eee:jaitra:v:7:y:2001:i:3:p:137-142
    DOI: 10.1016/S0969-6997(00)00041-7
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    References listed on IDEAS

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    Cited by:

    1. Capobianco, Heloisa Márcia Pires & Fernandes, Elton, 2004. "Capital structure in the world airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(6), pages 421-434, July.
    2. Guzhva, Vitaly S & Pagiavlas, Notis, 2003. "Corporate capital structure in turbulent times: a case study of the US airline industry," Journal of Air Transport Management, Elsevier, vol. 9(6), pages 371-379.

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