Over the last decade, with increasing mergers and consolidation in the U.S. airline industry and reduced competition, air fares were expected to increase dramatically.
Salary and fuel expense accounted for 66% of the total operating expenses.
Two of AirTran’s services to San Juan and Puerto Rico were already added to Southwest’s network in April, 2014.
According to KPMG, the cost gap reduced by 30% between 2006 and 2011.
LCCs don’t offer all services provided by a legacy carriers like free meals and drinks.
Southwest was instrumental in revolutionizing the industry with a differentiated business model.
As of December, 2013, the passenger segment comprised 94.5% of its revenues, cargo segment 0.9%, and ancillary revenues comprised 4.6%.
About 80% of China’s mines have operating costs at around $80–$90 a ton, according to Mysteel.com.
Scorpio Tankers has no direct competitors for the purpose of relative valuation as other large players are in the very large gas carrier (or VLGC) industry.
During the 2Q14, Scorpio Tankers (STNG) acquired 11.5 million of its common shares that are being held as Treasury shares.
The company maintains its policy to fund its fleet growth through raising equity and maintaining low leverage levels.
In 2013, the company’s revenue growth was primarily driven by charter-in of vessels while its charter hire cost increased and dented the company’s margins.
The combination that STNG follows in its chartering strategy includes commercial pools, time charters, and the spot market.
Scorpio’s product tankers are likely to deliver in 2014–2015, while new vessel orders would be available post 2016.
Dorian LPG has 16 fuel-efficient VLGC newbuildings on order at Hyundai Heavy Industries Co. Ltd. and Daewoo Shipping and Marine Engineering Ltd.
Trading at a market cap of $1.84 billion, the company records a dividend yield of 3.71% and a beta of 1.79.
Steel is a cyclical industry.
ArcelorMittal has the lowest forward EV to EBITDA multiple when compared to other U.S. listed peers.
Net debt is the measure of total debt, which a company has taken adjusted for any cash that it holds.
ArcelorMittal has been running a cost optimization plan under the name “management gains program.”