F4U Corsair in Color by Jim Sullivan

By Jim Sullivan

Huge 8.5 x eleven" layout with photographs.

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Sample text

The only year of operating loss happened in 2002. This is not surprising given the heavy international exposure of the airline and the catastrophic impact of 9/11 on the major regions where the airline flies. Overall, operating rates of over 5 per cent seem to be the norm, not the exception, for this airline. Again, operating margins are usually above 5 per cent except in down times of the aviation cycle. The airline avoided losses in the period under consideration and attained double digit returns a number of times.

S. 6 Cumulative Nominal Net Profits, World, 1947−1994 Source: Air Transport Association of America, Inc. chronicles the financial situation of the airline industry since 1947. Considering how much the industry grew over time, it is reasonable to assume that the financial realities before 1947 would not change the total result much. In order to properly assess the long-term profitability of the industry, it is necessary to use real (inflation-adjusted) profit data. It is obvious that one million dollars in the year 2000 was worth much less than 1 million dollars 50 years earlier.

Since 1978 the policies of both countries differed substantially. China saw the benefits of aviation and supported its growth, hence experienced unbelievable rapid growth. India, following a “flying is only for the rich and not necessary for economic growth” strategy actively discouraged aviation. Fuel taxes were among the highest in the world, airlines were obliged to fly to regions of the country the central government deemed needed service but guaranteed financial losses. Air India, established by the Tata family, was nationalized and remains a public entity until today.

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