Problem - Local Airways had the following results in the past two years:
2011 2010
Operating revenues $624,000 $618,000
Operating expenses $625,000 $617,000
Operating Property $365,000 $360,000
Long-term debt $280,000 $270,000
Estimated passenger miles 7,340,000 7,600,000
Calculate the following for 2011 and 2010:
A. The operating ratio and comment on the trend
B. The long-term debt to operating property ratio. What does this tell about debt use?
C. The operating revenue to operating property and comment on the trend.
D. The revenue per passenger mile. What has caused this trend?