Airline capital structure and returns

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. (C) 2001 Elsevier Science Ltd. All rights reserved.