Long-term debt to operating property

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P 12-6. Chihi Airways had the following results for the last three years:


2007


2006


2005

(In thousands of dollars)






Operating expenses

$1,550,000


$1,520,000


$1,480,000

Operating revenues

1,840,000


1,670,400


1,620,700

Long-term debt

910,000


900,500


895,000

Operating property

995,000


990,000


985,000

Passenger load factor

66.5%


59.0%


57.8%

Required a. Calculate the following for 2007, 2006, and 2005:

1. Operating ratio

2. Long-term debt to operating property

3. Operating revenue to operating property

b. Comment on trends found in the ratios computed in (a).

c. Comment on the passenger load factor.

Reference no: EM131133987

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