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.