03 Explain why 'capital employed' is a good way to measure the size of an airline

[hassanalizafar]

[KN] Capital employed helps to shows how much money a business has invested in its assets to operate.
[APP] For instance, an airline like Emirates invests heavily in airplanes which are very expensive and essential for its services.
[AN] This high level of investment reflects largescale operations allows carrying more passengers which increases revenue capacity which strengthens brand image hence attracts more investors.

[Mustafa Khan]

kn] it shows the total value and assets invested in the business.
app] for example, Qatar airlines has invested billions of dollars on their aircraft. While an airline like airblue has comparatively less. This shows that Qatar is bigger compony than airblue.
an]Hence this means a compony with more capital employed will have more valuable assets and can serve more passengers which would create a strong brand image of the compony, make the customer loyal, increase its market share and eventually establish monopoly.

[Wahaj Ashraf]

[KN]] Capital employed helps to shows how much money a business has invested in its assets to operate.
[APP] airlines like Emirates use expensive assets like aircraft and maintenance facilities meaning they require a large amount of capital.
[AN] Thus this shows a compony with more capital employed will e slightly better than competitors which would create a strong brand image of the compony, make the customer loyal, increase its market share and eventually leading towards monopoly.

[MuhammadAli91191]

[KN] Capital employed helps to shows how much money a business has invested in its assets to operate.
[APP] airlines like Emirates use expensive assets like aircraft and maintenance facilities meaning they require a large amount of capital.
[AN] Thus this shows a company with more capital employed will be slightly better than competitors giving the business a competitive advantage , allowing them to cut corners like advertisement as the consumers will already know about their business.

[Hajra]

[kn] It is a good way because it shows how much money is invested in the business.
[app] For example, large airlineslike qatar airways spend huge amounts on planes, airports, and equipment.
[an] This reflects the scale of their operations, shows their financial strength, and helps compare how much they’ve invested compared to smaller airlines.

[abdurrehman waseem]

KN: Capital employed measures the total value of assets used by a business to generate profits.
App: Airlines such as Emirates or Qatar Airways require expensive aircraft and maintenance facilities.
An: Since airlines rely on costly fixed assets, capital employed is a more accurate measure of business size than employee numbers or sales.

[Aayan Zaidi]

KN: Capital employed is the total money and assets a business uses. Bigger airlines need more capital to buy planes and run services.
APP: E.g Emirates invests billions in planes, while a small airline only has a few.
AN: It shows size well, though it doesn't show profit or success.

[Shaliza khawaja]

KN Capital employeed shows the total money invested in the business APP for example in an small airline might have $5million in there where as a big airline might have invested $5 billion in the business AN higher capital employed shows that airlines can perate more planes or serve more routes, this reflects that business makes more sales revenue, This helps investors identify which airline is higher and profitable or at least has growth potential , so they can invest in it

[AliAzeem]

[KN] Capital employed will give an accurate figure of the value of the airline's assets like airplanes, airport lounges etc.
[APP]For example a large airline like Qatar airways will spend more on its assets rather than a small regional airline.
[AN] High spending on airplanes, airport lounges and other assets has improved the quality of the service of Qatar airways which has led to a better brand image leading to customer loyalty resulting in higher sales and growth.

[sarah_naeem]

[KN]: Capital employed is a good way to measure the size of an airline because airlines are capital intensive and so it helps to show how much money a business has invested in it's assets.
[APP]: For example, Etihad airline invests huge amount on it's airplanes so they can provide better services globally and maintain their operations properly while a smaller regional airline such as airblue invests much less amount.
[AN]: Thus, a higher capital employed means the airline owns more aircrafts which are expensive and better and invests mainly on its services this leads to all operations being done smoothly which leads to a better service and increase in customers which increases the revenue and further improves brand image and also increases it's market share.

[Mamoona Hussain]

KN: Because airlines are capital intensive and capital employed shows all the long term investments and assets of the business.
APP: For instance, and airline like United Arab Emirates will have invested much more amount in valuable assets like airplanes, airport location etc, making it a bigger airline than the Pakistan International Airline as they have very less capital employed in comparison.
AN: Therefore it is a good method as it shows that the airline which has more capital employed will attract more customers, due to which they will earn higher revenue and profit margins, therefore ensuring long term survival of the airline. Therefore, this method gives the stakeholders of the airlines a clearer view of their size.

[Mashal Umair Niazi]

KN: More number of employees means a larger buisness
APP: E.g. the staff of an airline eg PIA is alot smaller than the staff of Emirates as it is alot larger
AN: This is because if the airline would be larger they would have more planes hence require more staff for attendants, pilots, crew etc. Also more employees indicate that the company is able to hire more/have more backups hence is richer and has more facilities, therefore also a larger customer base, therefore indicating that the buisness is larger.

[Areeba Arshad]

[KN] Capital employed refers to the total value of long-term finance invested in a business, including both equity and debt.
[APP] In the case of an airline, this includes expensive assets like airplanes, airport equipment, and maintenance facilities.
[AN] Since airlines require massive investment in aircraft and infrastructure, capital employed reflects the scale of operations. This helps compare the financial strength and capacity of different airlines, and shows how large-scale capital investment supports their ability to operate globally.

[Abdul Hadi]

KN: capital employed is the total value of assets a business uses to opperate making it a good indicator for determining the size of capital intensive indutry.
APP: For example an airline company like emirates owns a large fleet of planes worth billions which make it a high capital employed company compared to small regional airline companies.
AN: A higher capital employed shows the ammount of investment for buying multile planes, hangers etc, it also indicated the airlines capacity to serve more routes, it also helps to measure financial strength as it allows the business to compete globally.

[Dania Farooq]

[KN] Capital employed shows how much money a company has invested to run nd expand its operations so its a good way to measure business size.
[APP] For airlines, this works well because they spend huge amounts on airplanes, maintenance, fuel nd etc.
[AN] When an airline has high capital employed, it means the company is operating on large scales , owns costly planes nd has the money to keep improving services, attract investors as well as expand to more routes around the world.