A Comparison of Airlines: Air India vs Air China

This study compares the performance of Air India and Air China in terms of market structure, revenue, fleet size, and more. It evaluates the financial and non-financial performances of both airlines and highlights the factors affecting their performance. The study finds that Air China has a better efficiency and market share compared to Air India. However, Air India is supported by the government to recover its declining position. The study also analyzes the price comparison, profitability, and liquidity of both airlines using statistical methods. Overall, Air China emerges as the top performer in the aviation industry.

A COMPARISON OF AIRLINES :AIR INDIA V/S AIR CHINA
A COMPARISON OF
AIRLINES :AIR INDIA V/S
AIR CHINA
Re
2019

11
Table of Contents
Chapter One- Introduction.................................................................................................................4
Chapter Two- Literature Review.......................................................................................................7
Background.......................................................................................................................................7
Air India and Air China Marker Structure.........................................................................................7
Demand factors and Income elasticity...............................................................................................9
Fleet Size and Capacity of Airlines.................................................................................................10
Human resource and Corporate benefit for the airlines....................................................................12
Cost Factors.....................................................................................................................................12
Revenue and Expenditure................................................................................................................14
Chapter Three- Research Objective and Methodology..................................................................16
Research Questions and Hypothesis................................................................................................16
Research Approach..........................................................................................................................17
Research Design and technique.......................................................................................................17
Data collection and Sampling..........................................................................................................18
Ethical consideration.......................................................................................................................19
Chapter Four -Discussion and Results.............................................................................................20
Compare GDP and flight revenue (2009-2017)...............................................................................20
Profit rate of return of Air china and Air India................................................................................22
Rank of Airline in their country.......................................................................................................23
Price comparison of Air India and Air China..................................................................................25
Z score of Air India and Air China..................................................................................................26
Descriptive statistics........................................................................................................................27
Traffic..........................................................................................................................................27
Capacity.......................................................................................................................................28
Load Factor..................................................................................................................................29
Air India aircraft flown................................................................................................................31
Air India tonne kilometre performers..........................................................................................31
Chapter Five......................................................................................................................................32
Conclusions.....................................................................................................................................32
Contribution.....................................................................................................................................33
Limitation........................................................................................................................................33

11 Future Study....................................................................................................................................34
Bibliography.........................................................................................................................................34
Appendix...............................................................................................................................................0
A) GDP of China...............................................................................................................................0
A 1) GDP of Indian............................................................................................................................1
B) Profit rate of return.......................................................................................................................2
C)Z score of Air India and Air China................................................................................................3
D)Descriptive statistics......................................................................................................................5
Air Traffic.......................................................................................................................................5
Capacity.........................................................................................................................................6
Load Factor....................................................................................................................................7
AIRCRAFT FLOWN..........................................................................................................................8
CARGO CARRIED............................................................................................................................8
TONNE KILOMETRE PERFORMED ss...............................................................................................9

11
DECLARATION
ABSTRACT
Focus of the current study is to show the comparison of the two of airlines such as Air India
and Air china and reflects its overall performance. The researcher evaluates the financial and
non-financial performances of above mention two companies. This study favours Air China
in comparison to its competitor as the efficiency of this entity is better than its rival. Criteria
that show the increasing performance of this company is capacity of fuel and the efficiency of
aircraft, market segmentation, Consumer sectors, and revenues. The financial condition of
Air India is not as good as this entity faces losses for 1 decade. 4 obsolete aircrafts held by air
India hols reasons for increasing debts that arises the wounding up of the business. The
declining efficiency of Air India stabilizes by the government of India who injects capital in
this company to recover all the losses. While, in terms of growth in the aviation industry, Air
China beats its competitors by remaining in a topmost position.
Chapter One- Introduction
China is a very populous country as compared to India comprises of more than 1.40 billion
people living in China while 1.31 in India. Every country gives proper attention in reducing
its nation’s population as this increases the poverty and unemployment in the nation. A
higher population of China is signifies higher proportion of poverty and unemployment in the
nation which is suitable for its economy. Frequent growth of the aviation market will directly
results into higher needs and the expectations of its users. In results of this action, the level of
the customer’s satisfaction of the passengers towards the services of the airlines gets
increases and also creates value to the economy. In determining the position of the airlines,
the gross domestic product of two of the airline is compared with each other. As per the
authentic source, gives insight about the economic status of India by stating its gross
domestic product. GDP of India in comparison to its rival economy is 4.19% (India’s
economic status, 2018). This website helped in collecting reliable information about the
economic structure of China and India in assessing the overall performance of these two
airlines. Charts and graphs prepared by considering appropriate data to compare the fact
related to China and its rival nation. The positioning of Air India and its opponent gives a
new angle to the entire research. The business scale of two of the economies is analysed in
determining the worth of the businesses.

11 The size of both of the airline is a large scale due to the spreading of their branches all over
the world (Bosch and Pinto-Garay, 2018). For determining the worth of two of the airlines, its
market structure is compared. Declining of the market structure Air India holds a strong
reason for arising the situation of bankruptcy but on another hand, the share held by an entity
in the international market is higher that is 15.39% (Air India’s business scale,
2018). Business share held by air India in the local or domestic region is less than the share
held by its rival company. However, the market share held by Air China is 16.55% (China’s
business size, 2018) which is higher as compared to its competitor. Air China beats Air India
in terms of capturing a higher share in the market. In return, Air India remains in the
competitive race to fight against its opponent in the international market. The government of
China supports its national carrier by offering expanded infrastructure in the form of new
airports to help its airlines.
The capital injects by the government in Air India as a majority of a shareholder in this
airline to recover its declining position. 980 crores invested as capital in this airline by the
majority of a shareholder to overcome the declining position of the firm due to continuous
losses of this airline from the past 10 years (980 crores invested in Air India, 2018). India and
China get financial support from their government as their economy considers these airlines
as the pride of their nation. Air India’s revenue arises from flight is lower than its competitor
due to the aircrafts held by the same is less efficient to raise the revenue. An airline earns
majority of its earning comes from operating an aircraft. 425 Aircrafts held by Air China in
comparison to its opponent consists of only 140 aircraft. The less number of aircraft held by
Air India in comparison to its rival is due to 4 obsolete aircraft. The efficiency of Air India
gets affected as the number of total aircraft gets decreases from 140 to 136 (Fleet Details,
2018). More than half of the tourist in India come from China as per the national satiates data
of the year 2017.
The Altman Z score method is preferred to determine the Profitability and liquidity of two
airlines consider for this assignment. Out of which the statistical score of Air India is lesser as
compare to its competitor. Methods of statistics are considered as an important tool in testing
the validity of the collected data. Two handy and complete tools of statistics used for data
analysis in this research are descriptive and Z score. Integrated package tools in the form of
descriptive stats will help in determining the positioning of these airlines. This package
consists of some of the main tools such as mean, median, mode, standard deviation and range
in predicting the future performance. Value of these airlines will check in this analysis to
determine and comparing the factors affecting its performances in the global market.
Sudden changes in the aviation industry negatively affect the airlines operating in it are like
the owners bound to raise the flight prices. The market structure of the companies will get
suppressed when its existing customers will look more quality in a reasonable prices from the
business of its rivals. Air China and Air India is considered as the national flight carriers of
their countries which are public airlines having a majority of shares of the government.

11 The price comparison chart reveals that the flight ticket of Air China is higher than Air India.
Due to bankrupt situations of Air India charges lesser prices as compared to its competitor to
steal the attention of the passengers.
Strategic action is considered by an examiner in its study by considering all the facts and data
related to the topic of the study. They give preferences to the inductive research approach in
collecting the data for this thesis. This approach involves the selection of aims and the
objectives and disregarding the creation of hypotheses or assumptions to support the research.
Experimental design method selected as per the nature of this study to evaluate the relation
among the performance of the airlines consider for this study. Two of the airlines are
operating their businesses in a similar industry. It is considered in assessing the revenue
generates from the flights with is relation with the GDP of the country and how it affects each
other in a relative sense. Consequently, the Z score is based on some criteria’s such as
working capital ratio and other ratios to determine the capability of the companies in funding
the total assets held in an entity.
Chapter Two- Literature Review
Background
A literature review showing a comparison of two airlines and its relation with each other as
they operate in a same industry but are from different economies. Aim of the research is to
evaluate the efficiency of Air China and Air India to recognize the factors affecting the
performance of airlines. This phase of the dissertation aims to fill the gaps of the previous
research in a current research study. An earlier study performed by the research scholars on
the airlines, aviation industry or any of the companies in the past will utilize for the current
assignment (Cerri, Thøgersen&Testa, 2019). In this review, an investigator emphasizes a
highlight of the important areas of discussion in justifying the performance of these
companies. The main motive of an examiner is to determine the future reactions of the market
for which the market structure of both the company is observed. Current and future goals
developed to accomplish the same in a given timeline (Campos, Mendes, Valle & Scott,
2018). Some of the parameters used in analysing the growth of the airlines are the elasticity
of income, value addition to the business and the occupancy of the plans of an entity.

11 It is essential to strengthening the current plans of the airlines as an entity utilizes its existing
plans to move ahead in the future.
Air India and Air China Marker Structure
As per recent article, the image of Air India is portraying as a loss making unit. This article
shows that Air India has no reason to exist in the market as they are suffering from losses in
its domestic market. Growth of Air India is nil as the government support this entity by
investing 2800 crore in this airline. Apart from that, the earning of Air India from all of its
sources are 403 crores in two financial periods. Air India captures 12.4% of the domestic
market without showing any changes in its performance. The airlines have 12.4% of the
market share in the last month and 14.8% in previous years. However, having 16.55% in the
global market (, 2018). Indian economy invites majority of the tourists from its rival country
china as this move gets succeeded when 253128 tourists arrived from China.
However, the prime minister of India interacts with the president of China to flourishes the
trade among the countries as these meetings is about in creating new opportunities about the
tourism and the culture in the countries. Aviation industry of India is showing increment from
one period to another as the revenue passenger kilometre for the national airline that rises to
18.7% in the previous period. Aim of this airline is to be on atop position by achieving its aim
of considering the third-largest aviation market in the world till 2020. Aim to increase the
fleet size to 800 aircraft in the year 2020.
As per the study of (Market structure of Air China, 2018), Air China is world recognized
airline having 110 million of travellers in all across the world. This is a very recognized
airline in front of the people due to its 425 active aircraft satisfying the higher expectations of
the customers. The services of these airlines spread in the 42+ countries in the world,
capturing 180+ airports in 2018 show the efficiency of this entity. The entity lists itself with
the Hong Kong stock exchange to get the fruitful results of the stock market as the current
market capitalization of the enterprise is 13.87 billion is a result of this action. The
success of an airline depends on the alliances formed by an entity with other string
businesses. In accordance with this principle, the airline enters into an agreement with the
premium airline in 2007. These airlines provide premium services to cater to the needs of its
users throughout 193 countries and to 131+ locations. Moreover, the aviation market of
China enjoys the topmost position as compare to its rivals due to the quality of the services
offers to its users. The vision of Air China is to consider the largest aviation market by the
end of 2022 and enjoys a higher share in the world.
For comparing the annual growth and the performance of the airlines, it is essential to assess
the reactions of the entire aviation industry. However, India and China is compared with each
other to get a glimpse of two country’s aviation industry in explaining the positioning in their
own economies.

11 Demand factors and Income elasticity
The researcher explains the important concept of economics that is microeconomic concept
of income elasticity of demand. This concept helps in describing the market demand of Air
India and Air china. This approach helps in analysing the ratio of changes takes places
between the income and the market demand of the flights. An examiner describes the effect
of the fluctuations in the market demand on booking flights in the airline as this gets deviates
with the changes in their income of a user. An entity owner needs to consider some of the
factors before crafting the pricing strategy for its products. This is essential to detect in
advance about the effect of one sector on another and also resolves the problem faces by the
society.
As per the study of (Dana and Greenfield, 2019, pp.1-17), some of the factors held
responsible for changing the demand in the market are competition, preferences of travellers,
price of substitute goods in the market, trends in the aviation market, fashion in the market
and the expectations of the customers. It is mandatory for Air India and Air China to consider
all the factors that holds responsible for bringing changes in the selling price of its products.
Innovation in the market is introduces by an entity to get rid of excess competition in the
market and also to beat its rivals. Needs and desires of the customers are considered before
creating the services. An entity offer ancillary services to its users in meeting the increasing
tastes and the preferences of the customers. Amenities such as rest room, pubs or cafes, relief
in the cancelling and refund, baggage services will lure the attention of the users.
These will consider as a strategic action to increase the image of an entity among its users
which, in turn, suppresses the effect of the competition in the entire industry. A user always
looking for an airline which fulfils its demands and offer final product in an affordable range.
However, an entity observed the changes take places in the income level of the customers in
deciding the prices accordingly to increase its sales. Classes such as economy, first and
business class are offered to the airline owner to its customers. There is a direct relationship
between the interest and the income as increase in income will result in the interest and
decrease in income will decrease its interest. The prices decided by an entity by considering
this methodology to boost its sales from one period to another.
An airline updates the list of the products or services by introducing innovation in its
services to steal the attention of the customers. This enhances the travelling experience of a
passenger before boarding a flight as they get virtual experience of boarding a flight to

11 increase the sales. The user’s gets assurance about the services offered to them by the airlines
as they get to know everything using the virtual simulation. Basic thing require by every user
while boarding a flight is to get comfort. This will act as an innovative way to create loyal
and trustworthy customers and maintain positive relationships with them. This will also
decreases the complaint ratio of the customers after barding their flights as they assured about
the services before travelling. Important elements consider by an entity is the satisfaction of
the customer to survive for a more period in the service industry (Ramanust, Punluekdej, and
Nakvichien, 2018). An entity introduces lounge services for the travellers to relax in the area
as this maintains a positive relationship with the current and the potential users.
Fleet Size and Capacity of Airlines
Fleet is a common term showing the group of aircrafts held by two of the airlines such
as Air India and Air China. These entities operate its businesses in a same industry to cater
the needs of its users. The fleet size of Air China is better than its rivals as air china consists
no obsolete aircrafts in comparison to its opponent. Air china consists of 425 aircrafts in a
good condition while the fleet size of Air India consists of only 140.
Strength of an airline reflects in the number of aircrafts which is require in creating different
sources of generating revenues to cover up all the costs and the expenses. Currently, 124
aircraft held by Air India without considering its subsidiary companies under this head. The
details of fleet of this airline are 22 Airbuses comprises of A319, 320 and 321 which are
revenue-generating units for Air India. Airline is facing a situation of losses from the past 10
years which require improvement by increasing the aircrafts. Obsolete aircrafts of an airline
increases the losses faced by this entity and also denotes poor operation management. 4
aircrafts out of 34 are not working as they are not under the operation stage and do not
generate revenues. Air China delivers its first flight service through its Airbus A350-900
having a capacity of 312 seats including 32 business, 24 premium economy and 256
economies.
First Air bus introduces by airlines would generate positive outcomes of all the customers
(Rott et al., 2018). Consequently, airbus of Air India starts its Airbus 321 with 170 economy
seats and 12 businesses having an occupancy ratio of 80%. The occupancy ratio of its Airbus
is less than its rivals.

11 ICP launches long term fleet expansion plan for this company to meet the deficiency of the
occupancy proportion of its national airlines. Rivals of this business have higher occupancy
ratios to beat this airline. In overcoming this threat, the business operates 350 daily flights on
the domestic routes to overcome the effect of its competitors. The market share of the
business gets decreases from 19.8%to 11.8%.
Good thing about this airline is the built image of this airline which is working in eradicating
the worst performance of the airline. This airline covers majority of the destinations in all
across the world to generate revenues in overcoming its past losses. This entity covered 201
destinations in the world to maintain its position in the external market. These strategic
actions of the airlines will further help an entity in maintaining its current position in the
market. The capacity of an entity will get increases with the passage of time as this gibes
enough fight to India which is depriving in seeking the trust of its customers.
Human resource and corporate benefit for the airlines
Important factor affecting the present and the future performance are proper management of
the human resource department of the airlines. Air India and Air china’s HR department
reflect its strengths or weaknesses as this department handles the recruitment of an entity
which, in turn, makes the future of the business. Losses and the wound up witness by Aitr
India due to inefficient employees appointed by the HR department of the airline as HR
manager do not understand the need of the market and just appoints the employees just tyo
fill the vacancy. On another hand, Air china’s HR sector is quite better than the HR
department of this Airlie as they hire personnel according to the roles which hold a reason of
the flourishing of their business.
According to, (Halpern and Graham, 2018), corporate benefit is offered to the customers
according to their needs and the expectations. A traveller gets all kinds of services according
to the prices paid by them for the flights. Loyalty programs introduce by an entity in the form
of discounts and the rewards schemes to lure the attention of its travellers. Corporate benefit
says that a passenger traveller for a business purpose gets more benefit as compare to the
benefits getting as a regular or seasonal traveller. From the past ten years, Air India is
suffering from losses due to which the corporate benefit provides by an entity to its users are
not good.

11 Cost Factors
Cost is considering as an important element for every airline so as prominent for both these
companies to raft its strategies by considering these. Air India and Air china considers
indirect costs majorly in its costing when they imports any pats of the aircrafts from other
country that increases the budget of the airlines whose results reflects in the final prices of the
tickets. The cost of staffing gets increases when the airlines decide to introduce fresh talent in
its business to handle the operations and boost its performance. All these factors will help the
airline owner of these two companies in determining the price of their flight ticket to beat its
competitor by gaining a higher share over its competitors. Aim and motto of both the
companies are to minimise the costs and maximise the final output generated by selling its
services.
Economic value addition will help in assessing the worth or the efficiency of the
airlines in this study. Current approach will aid in identifying the economic profit earns by an
entity and also to assess the return earned by an entity in comparison to the shares held in the
business. As per EVA concept, the performance of Air India is not favourable as the
company is struggling to meet its primary goals as there is no return the firm is producing as
many money pumps in this business to give financial support. On the contrary to this, Air
China's earnings are high as the company is effort is seamless. The economic profit and the
return earned by an entity in comparison to the shares held by the shareholders are higher to
show its performance. The current concept assesses an entity’s performance using various
parameters such as checking the market value-added. The current position of an entity is to
compare with the reactions of the external market to see to what extent the external
environment will affect an entity’s performance.
The Air India’s situation of losses is due to the debt of the company as to pay off to the
industry as it is very high which needs to be paid off by the company to stabilise its position
in the market. The debt which an airline has to be pay to the aviation industry is 9000 cr INR
for the financial the year 2020 as till this year the airline has to repay this amount otherwise,
its survival in the industry is of no use. However, the company is not generating revenues to
meet up this cost as continuously the airline is suffering from losses which are not a good
thing as this need to improve (O’Connell, 2018). The researcher analyses the recent study
about industry performances and compares the overall performance. The airlines covering in
then identify that after the shutting up of jet airways. Air India is considered a second airline

11 to get shut who are able to meet the debts of the industry and regain its market position as
currently, the airline is struggling to meet its underlying revenues as all of their aircraft is not
operating correctly due to which no return or less return is generating in comparison to other
airlines. While in comparison to Air China. The performance of this airline is better as
globally Air India performs well as their performance rate is 16.55%, which is very high as
compared to the domestic flights. As well as the importance of Union loggerhead is very high
in running the business functions smoothly as any labour strike will directly affect the
business functions, which will further result in business losses. With the decreasing financial
condition of Air India, new wage policies introduce by the airline, so all their pilots come on
protests when they do not get the deserving salary as this protest affects the performance of
the airline.
Notwithstanding, the performance of Air China is excellent as the debt of the
company on the industry is not very high as the revenue generation model of an entity is very
high which need not requires an entity in taking debt from the industry. The market
positioning of an entity is high due to its assets as the assets of this airline that is all of their
aircraft generate enough revenue to cover up all the costs and debt imposed on the business
(Parise, 2018). The debt to equity and asset turnover ratio of Air India is less as compared to
Air China as the performance of the company that how an entity utilises its strengths in
meeting the burden of debt imposed on it. Furthermore, the pressures of the loggerhead, the
company’s operating expenses increased by 12.5% every year, which is not fruitful for their
better performance (Wings, 2017).
Additionally, unpredicted crowded air traffic can pose a significant threat for both the airline
as their business gets affected when due to increasing air traffic; the flights of the airline
companies get cancelled which leads to dissatisfaction among its customers who will shift to
other airlines (Aremu and Duyile, 2018). In meeting their needs and desires, it is essential for
them to watch the actions of the aviation industries in the present period to avoid any future
loss
Revenue and Expenditure
The airline emphasises on some of the centre of attraction areas in improving its performance
are reducing the tax legally to show improved earnings statements. In result of this, the
efficiency of an entity get also improves to showcase its skills in front of the people. In an
area, it can state in the working of Air China, there was an increase in revenue, which was

11 stated to be around RMB300 million. There was a rapid increase in the revenue during the
tenure of 2014 to 2018 with an increase of about 52% of the revenue increase.
Chapter Three- Research Objective and Methodology
Research Questions and Hypothesis
Two important tools used in a research are research questions and hypothesis. Both these
methods are crafted before starting the research as this guides a user in performing its study.
Deductive research approach involves the formulation of the hypothesis where an examiner
uses its tactics in resolving the issues related to this study and collect the information.
Aim of this study is to determine the queries related to both of the airlines.
 To determine the market structure of Air India and Air China
 To evaluate the aviation industry regulated in China and India
 Examination Economic Contribution of Air Indi and Air China
 To compare the performance of Air India and Air China?
In this research, I analysed the financial performance of the airlines by targeting the financial
statements of both the airlines to find out the area of growth and the differences.
Additionally, Segments reviewed for this study are customer satisfaction as well as the
employee’s satisfaction and getting brief idea about the client’s satisfaction level. Employee
satisfaction was also analyzed for determining the performace of the companies. Business
growth depends on two factors such as Customers and employees. SPSS is considered for
describing the positioning of Air India and Air China.
Purpose statement
To determine as how the difference in the growth rate of both these airlines arises.
Hypothesis
To estimate why both these airlines have faced such diverse growth
Null hypothesis
As per reports of the financial stream, Air India and Air China have equal annual growth with
Altman ratio above 3.0

11 Alternate hypothesis
There is no relation among the annual growth of both the airlines.
Research Approach
Three approaches to research are available as a choice for an examiner to select as per the
nature of the study. These are inductive, deductive also abductive after analysing the nature
of the study. An examiner consider deductive research approach for this dissertation as the
nature of this study includes the development of assumptions required in collecting the
reliable and useful information about this study. While, other approach is consider as this
demands only aims and the objectives when the research is evident and do not require any
further enquiry.
Research Design and technique
This approach guides a user in taking its study in an appropriate direction according to the
nature of the study. Various kinds of research designs will helpful for an investigator in
considering the same in its study. This will consist of several kinds such as theoretical,
practical, case analysis and experimental.
Motive of the research design is to collect the required data that meets the overall
requirements of the study (Tincani and Travers, 2018). This is emphasises on identifying and
analysing the nom-practical matter in a study. The correlational study finds out the
correlational among two variables whether positive or negative. An examiner investigates the
actions of research elements in the experimental research designs. Correlational design is
consider for this study to compare the performances of both the airlines by analysing their
revenues and other factors related to it (Opie, 2019).
Qualitative and quantitative research techniques are considered as common types of research
techniques (Amrhein, Trafimowand Greenland, 2018). Under the quantitative data analysis
tool, descriptive stat is used to evaluate the collected data. Interview method involves the face
to face interaction with the respondents in taking their viewpoint about the research issues in
the form of questions. The present research involves the use of quantitative technique in
analysing the research about the efficiency of the airlines considers for this study.

11 Data collection and Sampling
Stratum sampling method is considered for selecting the data in various groups or this study.
The samples selected about various groups such as age limit, gender, income level, interest,
needs and desires if the customers. 100 sample of the total population is collected to ensure
the validity and the authenticity of the data (Robbins, 2018).
I collected the financial data of Air India and Air China from authentic websites to determine
the monetary performances of these two airlines. Criteria’s used to assess the performance are
profitability, flight revenue, costs to the company on the operations, financial statements of
an entity.
A research gap is found out by comparing the current literature with the previous empirical
studies. From a corporate perspective, the growth of the airlines will describe in this study.
The current study is about the explaining of two methods such as Quantitative and Qualitative
research in showing the relation among the elements of the research and testifies its
coincidence. The dependency will estimate among the variables of the research. Intention of
an investigator is to examine the position of the airlines in the industry.
Ethical consideration
It is considered as an important segment of this research which guides a researcher in
performing its study. Consent and the permission is required in this research by giving credit
to them in the study after using their content in the research.
Chapter Four -Discussion and Results
Compare GDP and flight revenue (2009-2017)
Air China
Chinese economy’s gross domestic product over a certain period is presented in the form of
rank ad percentile to show the relationship with the flight revenue (Appendix A). This
approach of data analysis shows lesser performance as compared to the previous figures. The
flight revenues of Air China are better in comparison to the GDP of the Chinese economy
which, in turn, shows a higher contribution of the airlines towards its nation.
2009 2010 2011 2012 2013 2014 2015 2016 2017

11 GDP
of
China
14500
0
16700
0
19200
0
21000
0
22950
0
24800
0
26500
0
28400
0
31100
0
Flight
Reven
ue of
Air
China
13479
3.8
13402
2.7
14504
4.8
15815
5.7
15918
8.2
16512
2.3
16455
8.6
16588
.7
17500
4.2
2009
2010
2011
2012
2013
2014
2015
2016
2017
0 100000 200000 300000 400000 500000
GDP
Flight Revenue
A direct relationship exists between the growth of economy and the profitability of the
business. Both components show a competitive position due to similar changes in their
performance. In the year 2016, there is higher growth in China's GDP as against the flight
revenue of Air China.
Due to excessive competition in the airline industry in 2016, the flight revenues of the airline
got affected as customers get substitute products. Air China loses its position in the market
due to the strategic actions of their opponents. One factor affecting the overall performance
of Air China is its increasing costs of operation. The proportion of market competition gets
increases with the changing needs and demands of its customers. A consumer shifts their
interest to another airline as they look for the affordable prices and higher quality of services.
Air India
2009 2010 2011 2012 2013 2014 2015
201
6 2017
GDP of India
4700
00
5100
00
5590
00
6150
00
6720
00
7330
00
8010
00
884
000
9700
00
Flight revenue 1347 1340 1450 1581 1591 1651 1645 165 1750

11 of Air India 93.8 22.7 44.8 55.7 88.2 22.3 58.6 88.7 04.2
2009
2010
2011
2012
2013
2014
2015
2016
2017
0 200000 400000 600000 800000 1000000
Flight revenue
GDP
Line chart states the relation among flight revenue with the GDP. This chart also shows the
contribution of an airline to its nation by comparing it with its competitor. The contribution of
Air India to its economy is less than the contribution made by Air China. This shows the
growth of GDP but on another hand, the revenue of the airline is decreasing.
Real GDP has considered for this assignment in showing the sectors contributing to the
Indian economy. In this analysis, the effect of inflation is shown as to how this affects the
prices of goods and services.
There is a positive correlation exists between flight revenue and air travel as the increase in
revenue will change the position of an airline. An airline gets the support of their national or
local government when they contribute to its nation.
The sale of the flight gets affected due to changes takes place in inflation and the market. Due
to some changes in the flight tickets, a traveller will shift its interest from one airline to
another airline.
The profit rate of return of Air China and Air India
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Air
India
-
58.20
17
-
5.87
56
-
6.969
72
-
6.550
9
-
4.264
2
-
4.836
04
-
3.204
94
-
4.177
66
-
4.306
27
-
4.222
88
-
0.029
13
Air 0.413 1.15 0.725 0.994 0.276 1.425 0.478 1.339 0.790 0.757 0.790

11 China 528 061 626 427 273 401 041 924 801 496 801
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
-70
-60
-50
-40
-30
-20
-10
0
10
Air India Air China
The declining profit rate of return of Air India holds a strong reason for the losses occurred
by this airline. The profit rate of return or revenue generates by Air India is less than Air
China which increases the entire market competition in the aviation industry.
The rank of Airline in their country
Air India
Air India is considering second the best airline in India on a scale of top 5 airlines. This title
rewarded to this airline due to some of the features such as reasonable costs of tickets, all
time availability, accurate services, cancelling and refund policies.
Airlines Rank
Indigo 1
Air India 2
Spice jet 3
Go Air 4
Air Asia 5

11
Indigo Air India Spice jet GoAir Air Asia
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Rank
Rank
Air China
Out of top ranks, Air China stands in the last position as the services offered by other airlines
are better than this airline. Hainan airlines of China is the biggest competitor of Air China
whose rank is 1 in the overall rankings as they succeed in satisfying its customer better as
compare to Air China (Sktrax, 2018).
Airlines Ranking
Hainan 1
China Southern 2
China Eastern 3
Juneyao 4
Air China 5

11
Hainan China Southern China eastern Juneyao Air China
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Ranking
Ranking
Shallow position of the market structure of Air China is visible from the above chart as
compared to other airlines in the same country. Growth of an airline in the international
market is higher as against to its competitors.
Price comparison of Air India and Air China
Air India
Singapore
London
Paris
Madrid
Bankok
Dubai
Switzerland
Indonesia
Victoria
Kuala Lumpur
Pie chart shows the destinations comparison of two of the airlines in assessing its efficiency.
Different destinations used for comparing the ticket price of both the airlines to show the
affordability of one airline expressed in the form of above pie chart. An affordable price of its
India beats its biggest competitor Air China. A customer can travel all over the world by

11 using the services of Air India due to its reasonable services. Air china offers vest services
but its rival provides payment modes such as credit card, debit card and Net banking.
Air China’s operation management is better than its competitor as this entity spends costs in
the maintenance and the repairing which leads to exceed the budget. These will results into
the increase of the flight tickets due to higher operation costs.
Z score of Air India and Air China
“Z-score, sometimes called as standard score, is a measurement of calculating the standard
deviations of a point from the mean of data set. To be more specific, it is a measurement of
the number of standard deviations a data point is above or below the mean population” (My
Accounting Course, 2019). (Appendix C)
Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Air
India
(0.000
93)
(0.001
13)
0.001
32
0.002
38
0.002
60
0.002
78
0.002
84
0.001
29
0.002
71
0.000
22
0.001
24
Air
Chin
a
0.5825
0
0.9737
1
0.639
30
1.185
61
0.435
01
0.711
59
1.575
85
0.670
39
0.928
40
0.557
73
0.487
0
2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9
-0.20000
0.00000
0.20000
0.40000
0.60000
0.80000
1.00000
1.20000
1.40000
1.60000
1.80000
Z Score fo Air India and Air China
Air India Air China

11 Z score is applicable in determining the performance of Air China that shows positive values
to meet the costs and the overall expenses. This depicts the usage of assets held in an entity in
meeting the increasing sales of the business which decreases its liabilities. Better worth of an
airline in the current period is a signal of increasing in the future.
On another hand, minus values shows the worst performance of the airline showing the
burden of debt on an enterprise. The ability of the business is not enough to cover up all the
expenses and the losses.
Descriptive statistics
Traffic
The size of air traffic with the airline for the year 2019 is high which reflects in the higher mean value
of 15826 and also shows higher revenue.
Traffic
in Apr
2019
Traffic in
% change
vs Apr
2018
Traffic in
%
change vs
Mar 2019
Traffic in
Cumulativ
e Apr
2019
Traffic in
%
cumulati
ve
change
Mean
15826.0
2
4.9210526
32
4.921052
63
60352.668
42 4.815789
Standard Error
7229.42
1
1.7862139
21
1.786213
92
27364.412
49 1.653143
Median 1477 2 2 5767.1 3.1
Mode NA NA NA NA NA
Standard
Deviation
31512.3
2
7.7859259
74
7.785925
97
119278.70
87 7.205882
Sample Variance
99302.4
1 60.62064 60.62064
14227410.
59 51.92474
Kurtosis
6.98969
2
-
0.1644434
35
-
0.164443
4
6.8814065
88 -0.8804
Skewness
2.66925
8
1.1349426
96
1.134942
7
2.6578990
44 0.649428
Range
120287.
2 22.4 22.4 453395.1 21.8
Minimum 7.9 -2 -2 27.7 -4.6
Maximum
120295.
1 20.4 20.4 453422.8 17.2
Sum
300694.
4 93.5 93.5 1146700.7 91.5
Count 19 19 19 19 19
Confidence
Level(95.0%)
15188.4
5
3.7526961
96
3.752696
2
57490.497
32 3.473124

11 Increasing standard deviation reflects an increasing trend in the future period. Minute
changes witnessed in one year period from 2018 to 2019 due to worst performance of the
previous year.
The higher levels of customer satisfaction held responsible for increasing the web traffic on
the website of airlines.
An entity’s business gets affected when the changes will takes places in the prices of the
products or services offers by an entity to its users.
Capacity
Capacity in
Apr 2019
% change
vs Apr
2018
% change
vs Mar
2019
Capacity in
Cumulative
Apr 2019
%
cumulative
change
Mean 4765.864 9.236364 2.009091 18907.83 7.745455
Standard Error 2310.023 3.332219 2.383941 9186.205 1.454545
Median 973.9 7.3 4.3 3791.1 8.5
Mode NAs NA NA NA NA
Standard Deviation 7661.479 11.05172 7.906637 30467.19 4.824182
Sample Variance 58698266 122.1405 62.51491 9.28E+08 23.27273
Kurtosis 3.165331 -0.46277 0.466659 3.107529 -0.85113
Skewness 1.904627 0.697592 -0.1588 1.904206 -0.06208
Range 23717.2 35.4 29.2 93963.5 14.8
Minimum 26.6 -5.8 -13 99.3 -0.5
Maximum 23743.8 29.6 16.2 94062.8 14.3
Sum 52424.5 101.6 22.1 207986.1 85.2
Count 11 11 11 11 11
Confidence Level (95.0%) 5147.052 7.424647 5.311751 20468.14 3.240929
Air china’ capacity for the year 2018 how an increasing tend due to some of the reason such
as declining costs and increasing flight earnings, loyalty among the travellers, trustworthy
suppliers, and reasonable prices. The market structure of an entity gets strengthen by offering
specialised services that meets the needs and the desires of all its customers. The total
capacity of the airline for the year 2019 is showing the better performance by focusing on the
favourable aspects of the business.

11 An airline emphasizes on increasing its current size of the market by keeping more connects
in the business to stay in the competition. This state the summary of the changes takes places
in the business from one period to another showing positive or negative change.
Load Factor
Load factor
in Apr 2019
% change vs
Apr 2018
% change vs
Mar 2019
Load factor
in
Cumulative
Apr 2019
%
cumulativ
e change
Mean 61.790909
-
1.672727273
0.01818181
8
59.9363636
4 -0.99091
Standard Error 5.534954291 0.738806274
0.65502507
7
6.02055981
6 0.637674
Median 68.6 -1 0 67.2 -0.6
Mode #N/A -2 0.6 #N/A #N/A
Standard Deviation 18.35736662 2.450343204
2.17247240
8
19.9679379
4 2.114925
Sample Variance 336.9929091 6.004181818
4.71963636
4
398.718545
5 4.472909
Kurtosis
-
1.066087675 1.198392719
1.58020457
7 -1.32598227 -0.26925
Skewness
-
0.600455102
-
0.989385712 -0.52623871 -0.50813725 -0.50064
Range 53 8.8 8.4 54.6 6.7
Minimum 29.5 -7 -4.6 27.9 -4.5
Maximum 82.5 1.8 3.8 82.5 2.2
Sum 679.7 -18.4 0.2 659.3 -10.9
Count 11 11 11 11 11
Confidence Level
(95.0%) 12.3326467 1.646162964
1.45948682
3
13.4146432
4 1.420826
Two of the years such as April 2018 and April 2019 show the highest load factor data figures
(Enclosed in Appendix D) are better than the figures shown in the previous period. Previous
year’s load factor was 59 which gets reduces by 2% in the another period. The management
of the airlines determines to boost the revenues of the current period. Negative changes
observed in the performance of the business of Air China that reflects in its load factor.
Negative mean value of -1.67 and -2 value of median and mode denotes lack of efforts
applied by an airline in improving its performance.

11 Differences in the minutes are witnessed fir the year 2018 is declining from the
figures of the previous year. 1.8% changes observes in the performance of the load factor of
the airlines in the areas such as passengers flights, cargo and air mail sector.
The summation of 2019 is greater than the previous figures signifies the actions taken
by an entity owner in safeguarding its position in the external market. The balanced load
factor shows different segments such as local, global and national fleets to ensure the safety
of its passengers. The mean value of the above load is 59 which reflect the overall worth of
the airlines.
Flight DEPARTURES HOURS Spent By Air India
Mean 9783.5 Mean 18379
Standard Error 463.5 Standard Error 604
Median 9783.5 Median 18379
Standard Deviation 655.4879862 Standard Deviation 854.185
Sample Variance 429664.5 Sample Variance 729632
Range 927 Range 1208
Minimum 9320 Minimum 17775
Maximum 10247 Maximum 18983
Sum 19567 Sum 36758
Count 2 Count 2
Confidence Level (95.0%) 5889.325895 Confidence Level(95.0%) 7674.548
Forms of descriptive statistics are used in analysing the load factor of Air China. The load
factor gets decreases from 2018 to 2019 the period in all its kinds such as flights occupancy,
freight and other occupancies. The weakness of the load factor reflects in the form of
negative figures which alerts the management to improve in increasing the revenues.
Air India aircraft flew
Above table highlights the departure points and hours worked by Air India in determining the
performance of the company to track the number of aircraft flown. The image of Air India
gets affected by the fluctuating position of this airline due to its decreasing departures. Mean
value of hours spent by Air India is greater than flight departures shows its lack of
coordination in marketing its services among its customers.
Air India tonne kilometre performers

11 PASSENGER
(IN THOUSAND)
FREIGHT
(IN
THOUSAND)
MAIL
(IN
THOUSAND)
TOTAL
(IN
THOUSAND)
ss
Mean 115819.40 6734.6 729.4 123283.5
Standard Error 1795.40 619.6 30.4 2384.6
Median 115819.40 6734.6 729.4 123283.5
Standard Deviation 2539.07 876.3 43 3372.4
Sample Variance 6446925.91 768010.3 1851.6 11373159
Range 3590.80 1239.3 60.8 4769.3
Minimum 114024 6115 698.9 120898.8
Maximum 117614.80 7354.3 759.8 125668.1
Sum 231638.8 13469.36 1458.8 246567
Count 2 2 2 2
Confidence Level (95.0%) 22812.72 7873.8 386.6 30299.9
The efficiency of Air India is assessing by considering some of the factors including
segments such as flights, cargo and air mail’s volume reflects in thousands. The evaluation
shows a higher volume of passenger freight as comparison another factor that is airmail. The
highest revenue-generating unit for this airline is passenger and freight mail to recover its
past losses. On further analysis, it has found that the revenue of air-mail is less than cargo and
passage flights.
The figure is given below assesses the operational efficiency of Air India using rational
factors such as traffic, capacity and load factor.
PASSENGER
(IN THOUSAND)
FREIGHT
(IN
THOUSAND)
MAIL
(IN
THOUSAND)
TOTAL
(IN
THOUSAND)
ss
Mean 125891.4 6374.68 792.40 122283.5
Standard Error 1795.4 459.68 52.42 2584.65
Median 115849.40 6734.68 729.40 123283.5
Standard Deviation 2439.07 846.36 43.03 3372.41
Sample Variance 6466925.91 761010.3 1851.60 11373159
Range 3490.80 1239.36 60.85 4769.31
Minimum 124024 6125 698.98 120198.8
Maximum 117615.80 7254.36 759.83 125468.1
Sum 231538.80 12469.36 1448.81 256567
Count 2 2 2
Confidence Level (95.0%) 22212.72 7273.8 376.611 30199.91

11
Factors assessing the efficiency of Air India are number of passengers, kinds of earnings,
departure points and hours worked by the airline. Differences in the measuring criteria show
the performance and actual worth of these two airlines as the worth of Air China is calculated
in terms of millions while the efficiency of its rival expressed in thousands.
Chapter Five
Conclusion
It is articulated from the above thesis about the better condition of Air China as compared to its
rival. The efficiency of this airline has evaluated by using some of the analysis such as Z score,
comparison of prices, positioning of airlines and descriptive stats. These tools or evaluation gives
prima facie evidence about the favourable performance as against its opponent. Air China beats its
competitor by introducing amenities for grabbing the attention of its customers such as lounges and
other services related to infrastructure. Lounge services at the airport can access by the passengers
in various categories according to cost, quality, and comfort Gold, Elite and Silver. Weaker areas of
Air India are operations and customer management which leads to failure.
Contribution
I airlines performed my research taking two airlines operating in a similar industry to evaluate its
monetary and non-monetary factors affecting its own performance. These factors evaluated in this
thesis will also show some constituent in determining its growth over the period. I researched about
the past history of these two airlines to know the consequences of these factors on the performance
of the companies. During my analysis, I have analysed two important segments such as customer
and employee satisfaction of these companies and its effect on its business. I have found that these
two sectors are very important for these airlines to stay active in the competition as their growth
depends on these.
Limitation
The accuracy of the financial data is very important in assessing the financial capability of the
businesses in this research but due to less time, the accuracy of data gets affected. The accuracy of
the data depends on the validity and authenticity of the source from where information is extracted.
Few empirical kinds of studies are there depicting the relationship between fleets held by an entity
with its corporate growth. This study highlights the fluctuating relationship between the monetary

11 and the non-monetary operations of an entity. Lack of evidence has created gaps in this research
which affects the quality of this thesis. Aim of the current study is to evaluate the areas of two of the
airlines in analysing the growth. The main limitation of this study is the time limit in collecting the
data and the information. To ensure the validity of the information, another search is required after
completed the data collection segment in this thesis that requires enough time. However, I
completed this research in a short time period due to the pressure of submitting within the deadline.
I referred to authentic sources such as Sites, research papers, books, magazines, research journals,
official gazette and news reports in collecting data and information during my secondary research.
I consider selecting reliable information for this study as a major challenge as the limitation of
comparing the collected data in a short period of time. Selected evaluation model predicts the
similarity among two airlines in term of business size and getting all kinds of support from the
government.
Future Study
This study will help all future scholars in getting detailed research about the airline industry in filling
the shortcomings of the study. One of the major issues encountered throughout the research is the
unavailability of the data that requires more time in researching.
As per the recent study, According to the reports, the growth of civil aviation gets improved by 1.4%
over a particular period. The latest report says that the ten-time increase is witnessed in the services
offered by Air China and the launching of 3 new flights. Triggering factor boosting the economic
growth of Air China is the tourism of their nation which leads to expansion of its transportation
sector.

11 Bibliography
Air India. (2018). Annual Reports. Retrieved from www.airindia.in:
http://www.airindia.in/AnnualReport.htm?30
Business Today. (2018). A loss-making airline for almost a decade, Air India has no reason to exist.
New Delhi: Business Today.
Data.Gov In. (2018). Air Traffic Statistics . Retrieved from www.data.gov.in:
https://data.gov.in/catalog/air-traffic-statistics
Financial Express. (2018, June 28). FY18 Results: Air India revenues to rise, loss to drop. Retrieved
from www.financialexpress.com: https://www.financialexpress.com/economy/fy18-results-
air-india-revenues-to-rise-loss-to-drop/1223105/
Global Times . (2018, 9 6). India looks to increase number of visitors from China. Retrieved from
www.globaltimes.cn: http://www.globaltimes.cn/content/1118581.shtml
IATA. (2018, August). Aviation_Summit_Delhi_A4_cover copy. Retrieved from www.iata.org:
https://www.iata.org/publications/economics/Reports/India-aviation-summit-Aug18.pdf
Mint Fares. (2018, March 1). Top 5 Best Airlines Of India 2018. Retrieved from www.mintfares.com:
https://mintfares.com/top-5-best-airlines-india-2018/
My Accounting Course. (2019). What is Z-score? Retrieved from www.myaccountingcourse.com:
https://www.myaccountingcourse.com/financial-ratios/z-score
Sciencing. (2019). The Difference Between Research Questions & Hypothesis. Retrieved from
www.sciencing.com: https://sciencing.com/the-difference-between-research-questions-
hypothesis-12749682.html
Sktrax. (2018). Best Airlines 2018 by Region. Retrieved from www.worldairlineawards.com:
https://www.worldairlineawards.com/best-airlines-2018-by-region/
Wings. (2017). WestJet pilots vote to form union. Retrieved from www.wingsmagazine.com:
https://www.wingsmagazine.com/westjet-pilots-vote-to-form-union-14560/ > Accessed on
17 May 2019

11

A COMPARISON OF AIRLINES :AIR INDIA V/S AIR CHINA
Re
Appendix
A) GDP of China
2009 2010 2011 2012 2013 2014 2015 2016 2017
NY.GDP.PCAP.PP.KD 8651.725901 9525.818 10384.37 11145.75 11951.24796 12758.65 13569.89 14400.89 15308.71
NY.GDP.PCAP.PP.CD 8372.439978 9330.904 10384.37 11359.51 12394.21219 13481.86 14492.42 15548.1 16842.41
NY.GDP.PCAP.KN 32038.43494 35275.31 38454.62 41274.13 44256.98231 47246.89 50251.02 53328.3 56690.1
NY.GDP.PCAP.KD.ZG 8.857029819 10.1031 9.012854 7.332031 7.226936454 6.755778 6.358383 6.123804 6.303967
NY.GDP.PCAP.KD 4142.038286 4560.513 4971.545 5336.06 5721.693819 6108.239 6496.624 6894.465 7329.089
NY.GDP.PCAP.CN 26221.87783 30876.04 36402.77 40006.62 43852.45211 47202.83 50251.02 53935.18 59659.89
NY.GDP.PCAP.CD 3838.433972 4560.513 5633.796 6337.883 7077.770765 7683.503 8069.213 8117.267 8826.994
NY.GDP.MKTP.PP.KD 1.15177E+13 1.27E+13 1.4E+13 1.51E+13 1.62224E+13 1.74E+13 1.86E+13 1.99E+13 2.12E+13
NY.GDP.MKTP.PP.CD 1.11459E+13 1.25E+13 1.4E+13 1.53E+13 1.68237E+13 1.84E+13 1.99E+13 2.14E+13 2.34E+13
NY.GDP.MKTP.KN 4.26515E+13 4.72E+13 5.17E+13 5.57E+13 6.00735E+13 6.45E+13 6.89E+13 7.35E+13 7.86E+13
NY.GDP.MKTP.KD.ZG 9.399813171 10.63614 9.536443 7.856262 7.757635146 7.297666 6.900205 6.7 6.9
NY.GDP.MKTP.KD 5.51413E+12 6.1E+12 6.68E+12 7.21E+12 7.76651E+12 8.33E+12 8.91E+12 9.51E+12 1.02E+13
NY.GDP.MKTP.CN.AD 3.49081E+13 4.13E+13 4.89E+13 5.4E+13 5.95244E+13 6.44E+13 6.89E+13 7.44E+13 8.27E+13
NY.GDP.MKTP.CN 3.49081E+13 4.13E+13 4.89E+13 5.4E+13 5.95244E+13 6.44E+13 6.89E+13 7.44E+13 8.27E+13
NY.GDP.MKTP.CD 5.10995E+12 6.1E+12 7.57E+12 8.56E+12 9.60722E+12 1.05E+13 1.11E+13 1.12E+13 1.22E+13
NY.GDP.DEFL.ZS.AD 81.84506479 87.52875 94.66423 96.92905 99.08595168 99.90675 100 101.138 105.2386
NY.GDP.DEFL.ZS 81.84506479 87.52875 94.66423 96.92905 99.08595168 99.90675 100 101.138 105.2386
NY.GDP.DEFL.KD.ZG.A
D -0.133898166 6.944445 8.152151 2.392484 2.225234148 0.828374 0.093333 1.138018 4.054483
NY.GDP.DEFL.KD.ZG -0.133898166 6.944445 8.152151 2.392484 2.225234148 0.828374 0.093333 1.138018 4.054483
1.45755E+14 1.67E+14
1.92E+1
4 2.1E+14
2.29542E+1
4
2.48E+1
4
2.65E+1
4
2.84E+1
4 3.11E+14

11
A 1) GDP of Indian
Indicator Name 2009 2010 2011 2012 2013 2014 2015 2016 2017
Gross domestic income (constant LCU)
7.63285E+1
3
8.33E+1
3
8.74E+1
3
9.18E+1
3 9.7E+13
1.04E+1
4
1.12E+1
4
1.22E+1
4
1.32E+1
4
Gross domestic savings (% of GDP)
32.5804492
2
34.2675
3
32.7083
2
32.8551
9
32.0590
7
31.4314
3
30.5644
3
30.3553
4
29.9869
5
Gross domestic savings (current LCU) 2.0742E+13
2.62E+1
3
2.86E+1
3
3.27E+1
3 3.6E+13
3.92E+1
3
4.21E+1
3
4.66E+1
3
5.13E+1
3
Gross domestic savings (current US$)
4.37193E+1
1
5.74E+1
1
5.96E+1
1 6E+11
5.95E+1
1
6.41E+1
1
6.43E+1
1
6.95E+1
1
7.95E+1
1
Total natural resources rents (% of GDP)
3.50385212
9
4.48288
1 5.30021
3.97874
3
3.60936
7
2.81435
5
1.83414
5
1.83767
3
2.14297
2
GDP per capita, PPP (constant 2011 international $)
4170.22126
2
4463.16
8
4635.87
9 4827.56
5073.60
5
5385.14
2
5748.24
6
6146.86
4
6513.63
6
GDP per capita, PPP (current international $)
4035.60256
2
4371.84
4
4635.87
9
4920.14
5
5261.65
5
5690.39
5
6139.03
3
6636.53
9
7166.20
2
GDP per capita (constant LCU)
63009.6862
2
67435.9
5
70045.5
1 72941.7
76659.3
1
81366.4
5
86852.7
4
92875.6
5
98417.3
6
GDP per capita growth (annual %)
6.34085065
1
7.02473
2
3.86969
5
4.13471
8
5.09669
2
6.14033
4 6.7427
6.93461
1
5.96681
2
GDP per capita (constant 2010 US$)
1271.85888
7
1361.20
4
1413.87
8
1472.33
8
1547.37
8
1642.39
3
1753.13
4
1874.70
7
1986.56
7
GDP per capita (current LCU)
52429.9069
2
62019.4
3
70045.5
1
78729.1
7
87860.5
8
96362.5
6
105204.
8
116015.
1
127652.
8
GDP per capita (current US$)
1105.09734
5
1361.20
4
1461.67
2
1446.98
5
1452.19
5
1576.00
4
1606.95
3 1729.71
1979.36
4
Natural gas rents (% of GDP)
0.14241480
1
0.12119
6
0.19709
4
0.16868
9
0.10833
2 0.10251 0.08001
0.04143
6
0.04369
3
GDP, PPP (constant 2011 international $) 5.06378E+1 5.49E+1 5.78E+1 6.1E+12 6.49E+1 6.97E+1 7.52E+1 8.14E+1 8.72E+1

11 2 2 2 2 2 2 2 2
GDP, PPP (current international $)
4.90031E+1
2
5.38E+1
2
5.78E+1
2
6.21E+1
2
6.73E+1
2
7.36E+1
2
8.04E+1
2
8.79E+1
2 9.6E+12
GDP (constant LCU)
7.65108E+1
3 8.3E+13
8.74E+1
3
9.21E+1
3 9.8E+13
1.05E+1
4
1.14E+1
4
1.23E+1
4
1.32E+1
4
GDP growth (annual %)
7.86188237
2
8.49758
7
5.24131
4
5.45638
8
6.38610
6
7.41022
8
7.99625
4
8.16952
7
7.16788
9
GDP (constant 2010 US$)
1.54438E+1
2
1.68E+1
2
1.76E+1
2
1.86E+1
2
1.98E+1
2
2.13E+1
2
2.29E+1
2
2.48E+1
2
2.66E+1
2
GDP: linked series (current LCU)
6.36641E+1
3
7.63E+1
3
8.74E+1
3
9.94E+1
3
1.12E+1
4
1.25E+1
4
1.38E+1
4
1.54E+1
4
1.71E+1
4
GDP (current LCU)
6.36641E+1
3
7.63E+1
3
8.74E+1
3
9.94E+1
3
1.12E+1
4
1.25E+1
4
1.38E+1
4
1.54E+1
4
1.71E+1
4
GDP (current US$)
1.34189E+1
2
1.68E+1
2
1.82E+1
2
1.83E+1
2
1.86E+1
2
2.04E+1
2 2.1E+12
2.29E+1
2
2.65E+1
2
Mineral rents (% of GDP)
1.12330672
2
1.68147
5
1.47177
7
0.80767
3
0.94612
7
0.59608
7 0.33632
0.41206
5
0.51398
7
Forest rents (% of GDP)
0.25980573
3
0.37557
5 0.35206
0.30716
5 0.27543
0.26276
8
0.30178
4
0.33268
4
0.29304
1
Gross value added at basic prices (GVA) (constant LCU)
7.13184E+1
3 7.7E+13
8.11E+1
3
8.55E+1
3
9.06E+1
3
9.71E+1
3
1.05E+1
4
1.13E+1
4
1.21E+1
4
Gross value added at basic prices (GVA) (constant
2010 US$)
1.43916E+1
2
1.55E+1
2
1.64E+1
2
1.72E+1
2
1.83E+1
2
1.96E+1
2
2.12E+1
2
2.28E+1
2
2.44E+1
2
Gross value added at basic prices (GVA) (current LCU)
5.97491E+1
3
7.08E+1
3
8.11E+1
3 9.2E+13
1.04E+1
4
1.15E+1
4
1.26E+1
4
1.39E+1
4
1.55E+1
4
Gross value added at basic prices (GVA) (current US$)
1.25937E+1
2
1.55E+1
2
1.69E+1
2
1.69E+1
2
1.71E+1
2
1.88E+1
2
1.92E+1
2
2.08E+1
2 2.4E+12
Discrepancy in expenditure estimate of GDP (constant
LCU) 5.5902E+11
-
5.9E+11 -3E+11
4.16E+1
1
-
3.3E+11
-
2.4E+11
7.88E+1
1
2.68E+1
2
3.81E+1
2
Discrepancy in expenditure estimate of GDP (current
LCU)
-
7.6684E+11
-
8.1E+11 -3E+11
1.23E+1
2
1.14E+1
2
1.87E+1
1
1.02E+1
2
2.94E+1
2
3.85E+1
2
GDP deflator: linked series (base year varies by
country) 83.2092811
91.9679
1 100
107.934
4
114.611
8
118.430
3
121.130
1
124.914
4
129.705
5

11 GDP deflator (base year varies by country) 83.2092811
91.9679
1 100
107.934
4
114.611
8
118.430
3
121.130
1
124.914
4
129.705
5
Inflation, GDP deflator: linked series (annual %)
7.04038701
9
10.5260
2
8.73358
2
7.93438
7
6.18650
4
3.33175
7
2.27958
8
3.12422
7
3.83550
5
Inflation, GDP deflator (annual %)
7.04038701
9
10.5260
2
8.73358
2
7.93438
7
6.18650
4
3.33175
7
2.27958
8
3.12422
7
3.83550
5
4.47755E+1
4 5.1E+14
5.59E+1
4
6.15E+1
4
6.72E+1
4
7.33E+1
4
8.01E+1
4
8.84E+1
4 9.7E+14
B) Profit rate of return
Air China
Formula 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Equity
122513
62
128919
55
128919
55 533122
130847
51
130847
51 59748
130847
51
145248
15
154248
15
145248
15
Profit
506628
5
148336
12
935473
9 530151
361496
1
186510
21 28562
175325
75
114862
32
116842
32
114862
32
Return on
equity
Profit/
equity
0.41352
8 1.15061
0.72562
6
0.9944
27
0.27627
3
1.42540
1
0.4780
41
1.33992
4
0.79080
1
0.75749
6
0.79080
1
Air India
Formula 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Equity 14500 9450 9850 11540 12875 12985 13450 13800 14587 14875 15550
Profit
-
843925
-
55524.4
-
68651.7
-
75597.4
-
54901.6 -62796
-
43106.5
-
57651.7
-
62815.6
-
62815.4
-
533774
Return on
equity
Profit/
equity
-
58.2017 -5.8756
-
6.96972 -6.5509 -4.2642
-
4.83604
-
3.20494
-
4.17766
-
4.30627
-
4.22288
-
0.02913
C)Z score of Air India and Air China
Air India

11 Particulars Formula 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Current asset 51832 -11408.4 22510 32640 44485 53452 54586 55869 57872 58889 64552
Current asset 52323.8 66396.6 67405
Working capital total asset-total liabilities-491.8 -77805 -44895 32640 44485 53452 54586 55869 57872 58889 64552
Total assets 1.08E+08 107918076 1.1E+08 109716068 108815058 107814056 106815046 115817089 115918068 1258289065 135817089
A Working capital/Total assets-4.56E-06 -0.000721 -0.00041 0.0002975 0.0004088 0.0004958 0.000511 0.0004824 0.0004992 4.6801E-05 0.0004753
Retained earnings 1450 9450 9850 11540 12875 12985 13450 13800 14587 14875 15550
Total assets 1.08E+08 107918076 1.1E+08 109716068 108815058 107814056 106815046 115817089 115918068 1258289065 135817089
B Retained Earnings/total assets1.34E-05 8.757E-05 8.98E-05 0.0001052 0.0001183 0.0001204 0.0001259 0.0001192 0.0001258 1.1822E-05 0.0001145
Earnings before interest and tax -71886.3 -55509 9850 11540 12875 12985 13450 13800 14587 14875 15550
Total assets 1.08E+08 107918076 1.1E+08 109716068 108815058 107814056 106815046 115817089 115918068 1258289065 135817089
C EBIT/Total asset-0.000666 -0.000514 8.98E-05 0.0001052 0.0001183 0.0001204 0.0001259 0.0001192 0.0001258 1.1822E-05 0.0001145
Market value of Equity 1450 9450 9850 11540 12875 12985 13450 13800 14587 14875 15550
Total liabilities 83964555 83964444 83694445 83685445 85858544 89658548 90059845 911985745 921589547 855647548 855647589
D market value of equity/Total liabilities1.73E-05 0.0001125 0.000118 0.0001379 0.00015 0.0001448 0.0001493 1.513E-05 1.583E-05 1.7384E-05 1.817E-05
Sales 134793.8 134022.7 145044.8 158155.7 159188.2 165122.3 164558.6 16588.7 175004.2 125009.5 16001.5
Total assets 1.08E+08 107918076 1.1E+08 109716068 108815058 107814056 106815046 115817089 115918068 1258289065 135817089
E Sales/Total assets0.001249 0.0012419 0.001322 0.0014415 0.0014629 0.0015315 0.0015406 0.0001432 0.0015097 9.9349E-05 0.0001178
Z Score 1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.
-0.000925 -0.001131 0.001324 0.0023756 0.0025996 0.0027794 0.0028353 0.0012912 0.0027098 0.0002215 0.0012372
Air China

11
ParticularsFormula 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Current asset 4582524 22979365 23353167 12048 25817429 21053036 47740 19986337 20759942 22860052 2355542
Current liabilities 33150612 52389096 61331560 59340 70074187 60843094 50547 64180434 72131835 68121450 66151230
Working capitaltotal asset-total liabilities-28568088 -29409731 -37978393 -47292 -44256758 -39790058 -2807 -44194097 -51371893 -45261398 -6.4E+07
Total assets 102492285 158773999 175850072 187591 205083287 209310697 213631 224050951 235644584 254634584 2.36E+08
A Working capital/Total assets-0.278734033 -0.185230146 -0.215970301 -0.252101647 -0.215799 -0.1901 -0.01314 -0.19725 -0.218006 -0.1777504 -0.27073
Retained earnings 12070551 31159231 12891955 52278 13084751 13084751 59748 13084751 14524815 1254815 1524815
Total assets 102492285 158773999 175850072 187591 205083287 209310697 213631 224050951 235644584 265344485 2.37E+08
B Retained Earnings/total assets0.117770338 0.196248953 0.073312196 0.278680747 0.0638021 0.0625135 0.279679 0.0584008 0.0616387 0.004729004 0.006446
Earnings before interest and tax 5066285 14833612 9354739 18681 4518093 18651021 28562 17532575 11486232 11684232 11486232
Total assets 102492285 158773999 175850072 187591 205083287 209310697 213631 224050951 235644584 352644584 5.64E+08
C EBIT/Total asset 0.049430891 0.093425952 0.053197243 0.099583669 0.0220305 0.0891069 0.133698 0.0782526 0.0487439 0.033133167 0.020379
Market value of Equity 12251362 12891955 12891955 52278 13084751 13084751 59748 13084751 14524815 15424815 14524815
Total liabilities 83964555 82810083 127524637 135313 147537099 150200797 147108 147654552 140785986 170485986 1.41E+08
D market value of equity/Total liabilities0.145911117 0.155680982 0.101093838 0.386348688 0.0886879 0.0871151 0.406151 0.0886173 0.1031695 0.09047556 0.103169
Sales 51393191 82487539 98409502 100838 98180790 105884322 110057 115144692 124026202 102426202 1.24E+08
Total assets 102492285 158773999 175850072 187591 205083287 209310697 213631 224050951 140785986 170485986 1.84E+08
E Sales/Total assets 0.501434728 0.519528005 0.559621619 0.53754178 0.4787362 0.5058715 0.515173 0.5139219 0.8809556 0.600789569 0.673742
Z score 1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.00E1.20A+1.40B+3.30C+0.60D+1.0
0.582500971 0.973714594 0.639301537 1.185608169 0.4350139 0.7115916 1.575849 0.6703868 0.9283992 0.557734487 0.487043

11 D)Descriptive statistics
Air Traffic
Traffic
Apr 2019 % change
VS Apr 2018
% change
VS Mar2018
Cumulative Apr
2019
% cumulative
change
1.RTKs (in
millions) 2,123.70 2.8 0.3 8,252.80 4.5
Domestic 1,101.00 -0.3 -2.8 4,453.10 2.4
International 941.3 5.4 3.7 3,491.30 6.5
Regional 81.4 18.8 5.7 308.4 15.3
2.RPKs (in millions) 19,224.80 4.2 0.6 76,492.90 6.3
Domestic 10,961.30 -0.1 -2.5 45,061.40 3.1
International 7,473.00 9.8 4.7 28,403.40 10.7
Regional 790.5 20.4 6.9 3,028.00 17.2
3.RFTKs(in
millions) 415.4 -1.6 0.8 1,512.80 -1.4
Domestic 126 -1.1 -3.6 487.3 -2.1
International 281.5 -2 2.9 997.9 -1
Regional 7.9 4.9 0.6 27.7 -2.5
4.Number of
Passengers carried
(in thousands)
9,350.10 2.1 -1.4 37,795.40 5.3
Domestic 7,371.70 -1 -2.2 30,110.00 2.8
International 1,477.00 14.5 0.1 5,767.10 16.1
Regional 501.4 19.6 6.9 1,918.40 16.9

11 5.Total Cargo tonnes
carried 120,295.10 -0.5 -2.4 453,422.80 -0.7
Domestic 77,280.30 -1.7 -3.9 298,901.60 -2.3
International 38,421.70 2 1.1 137,765.70 3.5
Regional 4,593.00 0.1 -4.2 16,755.50 -4.6
Capacity
1.ATKs (in
millions) 3,073.50 4.2 -0.6 12,278.30 5.8
Domestic 1,521.20 -0.7 -5.5 6,415.40 2.9
International 1,433.70 8.5 4.5 5,413.50 8.7
Regional 118.6 23.4 9 449.4 14.3
2.ASKs (in
millions) 23,743.80 4.9 0.2 94,062.80 6.2
Domestic 13,280.50 0.8 -3.2 54,644.30 3.9
International 9,489.40 9.5 4.6 35,713.00 9
Regional 973.9 21.3 7.2 3,705.50 14
3.AFTKs (in
millions) 931.7 2.8 -2.2 3,791.10 4.9
Domestic 326.5 -5.8 -13 1,496.90 -0.5
International 578.6 7.3 4.3 2,194.90 8.5
Regional 26.6 29.6 16.2 99.3 13.3

11 Load Factor
1.Passenger
Load Factor(％) 81 -0.5 0.3 81.3 0.1
Domestic 82.5 -0.8 0.6 82.5 -0.6
International 78.8 0.2 0 79.5 1.2
Regional 81.2 -0.6 -0.2 81.7 2.2
2.Cargo load
factor(％) 44.6 -2 1.3 39.9 -2.5
Domestic 38.6 1.8 3.8 32.6 -0.5
International 48.7 -4.6 -0.7 45.5 -4.4
Regional 29.5 -7 -4.6 27.9 -4.5
3.Overall Load
Factor(％) 69.1 -1 0.6 67.2 -0.8
Domestic 72.4 0.3 2 69.4 -0.3
International 65.7 -2 -0.5 64.5 -1.3
Regional 68.6 -2.7 -2.1 68.6 0.6

11 Aircraft Flown
MONTH
AIRCRAFT FLOWN
DEPARTURE
S
(IN
NUMBER)
HOURS
(IN NUMBER)
KILOMETRE
(IN
THOUSAND)
JAN 10,378 19,895 11,300
FEB 9,320 17,775 10,168
MAR 10,247 18,983 11,230
CARGO CARRIED
MONTH
FREIGHT
(IN TONNE)
MAIL
(IN TONNE)
TOTAL
(IN TONNE)
PASSENGER
(IN THOUSAND)
JAN 5,673.3 750.6 6,423.9 117,812.7
FEB 5,283.3 750.4 6,033.8 114,024.0
MAR 6,417.6 731.0 7,148.6 117,614.8

11 Tonne Kilometre Performed s
MONTH
PASSENGER
(IN THOUSAND)
FREIGHT
(IN THOUSAND)
MAIL
(IN THOUSAND)
TOTAL
(IN THOUSAND)
JAN 117,812.7 6,776.8 799.8 125,389.4
FEB 114,024.0 6,115.0 759.8 120,898.8
MAR 117,614.8 7,354.4 699.0 125,668.1
s