FdA Aviation: Dynamic Aviation Environment & Industry Analysis

This report provides a comprehensive analysis of the dynamic aviation environment, focusing on the impact of Hong Kong's pro-democracy protests on the aviation sector, particularly Cathay Pacific and Hong Kong International Airport. It includes a definitional analysis of democracy, an examination of current trends in the aviation sector based on provided datasets, and a performance evaluation of Cathay Pacific and Hong Kong International Airport over the past three years, considering liquidity and profitability ratios. The report also assesses the effectiveness of Cathay Pacific's recovery from the protests, highlighting the challenges faced by the aviation industry due to political unrest and the COVID-19 pandemic. It concludes with insights into managing assets and improving operational efficiency for sustained growth and competitiveness in the aviation market.

Dynamic Aviation
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK ..............................................................................................................................................3
B Declinational analysis of the term Democracy. ......................................................................3
C Based on given data sets, determine current trends in aviation sector....................................4
D performance of the organisation for many categories over past 3 years ..............................8
E Determine the effectiveness of Cathy pacific recovery from Hong Kong pro-democracy
protest........................................................................................................................................14
CONCLUSION .............................................................................................................................15
REFERNCES:................................................................................................................................17
Books and Journals:..................................................................................................................17

INTRODUCTION
The report aims to provide analysation of anti government protest which has impacted on
various aviation sector of Hong-Kong. This protest has impacted on the mainland China by
enabling some restriction on Cathy pacific. It took place from 2019-2020. the protest claims to
undertake democracy regulation which makes one country, two system. Therefore, Hong-Kong
was enjoying their freedom of rights and independence over decision making for countries
regulation. But the situation is not in favour for which the protest has began. The report is going
to provide an revelation of Hong-song protest to get freedom and be a part fop mainland China.
Aviation industry gets highly affected with all these circumstances and protests which stops their
flight to land and schedule through Hong-Kong. The report has took analysation of the impact
of protest on Cathy pacific and Hong-Kong international. These two aviation organisation
headed through Chinese international airport. Cathy pacific was founded in 1946 which swerve
operations of passengers and cargo services across 190 destinations (Kalakou, and Moura,
2021). The report will analyse how Hong protest had faced decline in stock market for Cathy
pacific which results in lower sales and demand. As the aviation sector has faced uncertainties
and challenges to welcome passenger arrival due to lock-down in protest and many other
restrictions in Hong-Kong.
MAIN BODY
TASK
B Declinational analysis of the term Democracy.
Author Definition Key points
(Rabinovich, Curry, and
Elkaim, 2018).
Democracy is known as living
in a country with utmost
freedom and independent
rights under legal obligations.
A democratic country known
to be developed and flexible.
 Democracy is a
governmental power
assigned to people
about equality and
freedom.
 Obligation of legal
powers and laws to

have authority to live
freely.
(Adjekum, 2017). Democracy is termed as power
and opportunity to decide their
own governing legislator based
on own culture, values and
beliefs which ascertain justice
and self satisfaction.
 It works as power and
rights to every
individual.
 Democracy gives rights
to live freely as per
their own believes and
norms.
( Kelly, and Efthymiou,
2019).
A democratic country believes
in treating fair and promotes
equality for every individual
whether a businessman,
employee, or others to avoid
fear of living on behalf of
others and take necessary
actions for any misconducts.
 Living life peacefully
with all own wishes is
a democratic society.
 There are right to sue
and be sure for any
misconduct act
irrespective of
government provisions.
Democracy is a self independence which makes a person independent and a self decision maker
for loving own life. A person is the ruler of their own living world in which no third part have
right to raise question without their permission. Living democratically consist matter of
individual rights to live a life the way they want. Therefore, choosing own ruler and
government is an opportunity for individual to select best companion whom order people are
ready to take. It defines who will give commands and orders are also in the hand of people in a
democratic country.
C Based on given data sets, determine current trends in aviation sector
Passenger Number Current Trends
70513000 0

Passenger Number Current Trends
72866000 3.3369733241
71543000 -1.8156616254
8835000 -87.6507834449
Aircraft movements Current Trends
412000 0
421000 2.1844660194
428000 1.6627078385
420000 -1.8691588785
161000 -61.6666666667
Cargo Handled Current Trends
4521000 0
4937000 9.201504092
5121000 3.7269596921
4809000 -6.0925600469
4473000 -6.9868995633
Current Trends of Traffic of Cathy Pacific
Passenger Current Trends
35.5
35.2 0.0

Passenger Current Trends
4.6 -8.2
RPKS Current Trends
130626 0
134397 0.03
20079 -0.86
ASKS Current Trends
1555361 0
163744 -0.9
34609 -0.79
Current Trends of Airline Industry Net Profit-
North America
Year Net Profit Current Trends
2018 14.5 0
2019 17.4 0
2020 -45.8 -4

North America
Europe
Year Net Profit Current Trends
2018 9.1 0
2019 6.5 -0.2857142857
2020 -26.9 -5.1384615385
Asia Pacific
Year Net Profit Current Trends
2018 6.1 0
2019 4.9 -0.1967213115
2020 -31.7 -7.4693877551
Middle East
Year Net Profit Current Trends
2018 -1.5 0
2019 -1.5 -0
2020 -7.1 3.7333333333
Latin America
Year Net Profit Current Trends
2018 -0.8 0
2019 -0.7 -0.125
2020 -0.5 -0.2857142857

North America
Africa
Year Net Profit Current Trends
2018 -0.1 0
2019 -0.3 2
2020 -2 5.6666666667
World
Year Net Profit Current Trends
2018 27.3 0
2019 26.4 -0.032967033
2020 -118.5 -5.4886363636
By evaluating the profits and trends into above table, it has identified that, Aviation
sector currently facing challenges and losses as current time become worst for the industry (Li,
and Ryerson, 2019). Airline sector is mainly affected with the situation of Covid-19 that hinders
their growth and opportunity to grow profitability.

D performance of the organisation for many categories over past 3 years
Liquidity Ratios – Liquidity ratio shows how much a company is ready to pay at current time. It
defines the existence of cash present into company which can be conner into cash at any time
period(Seamster, and Redding, 2017). There are mainly three kinds of Liquidity ratio which
determines the capability top pay debts of company, these are Current Ratio, Quick Ratio and
Cash Ratio.

Current Ratio- Current assets are those which last up to one year in a company. So that,
current ratios defines the ability of finances through which company could cover short terms
expenses. Ideal current ratio is 2:1.
Current Ratio can be calculated as – Current assets/current liabilities
By the evolution and calculation of current ratio for Cathy pacific, it shows the result of 1.58 in
2018 whereas, in 2019, the figure was less as compared to past year which was 1.52. therefore, it
shows that the company was better capable in 2018 to pay their debts and overcome with day to
day expenses (Knight, Partridge, and Powrie, 2021). Therefore, Cathy pacific has relevantly
normal condition than 2019 as they have much assets and less liabilities which impact positively
on the growth of aviation in Hong-Kong. whereas, In Hong-Kong international, it faced declines
due to the protest of democracy that lowers down companies current ratio by 0.5 as 2018 was the
year, company was enjoying ratio 2 for paying debts over liabilities. But now, financial crises
occurs and ration goes to 1.05.
Profitability Ratios- this ratio provides an insight about companies profitability by comparing
to past results. As soon as ratio gets higher, companies is on the tract of great profitability by
influencing market and enabling sales as well as stakeholders value. Comparing results gives
better identification by analysing competition in profitability which helps to improvise ratios. In
Context of Cathy Pacific, the year 2018 was profitable for the company which attain net profit
of 2.500 whereas, in 2019, the company has declines its profits and reach to 1.58. this shows
profitability is getting down for the company whereas, Hong Kong international gives
competition to Cathy pacific as their net profit shows 52.2233 in the year 2018 by goes

downwards to 43.153. however, Hong Kong international has much profitability as compared to
Cathy pacific.
Operating Profit-
Operating profit is useful to find out level of profitability for organisation. It deals with the
efficiency of a firm by generating operations expenses and cost in a structured manner to
identify profits over expenses. It helps in find out factors which creates hurdles for achieving
high performance targets. Operating income come out after identify all the expenses held in
operations functions (Cheung, Wong, nd Zhang, 2020). Cathy pacific shows a worst decline on
operation income which is between 20 to 30%. whereas, Hong-Kong international shows an
ideal percentage which is better than Cathy Pacific. Therefore, in order to check profitability
level, these companies need to look at internal factors of operations and try to minimise cost like
salary, wages, cost of production, cost of good sold, inventory etc.