I explore the effect of the threat posed by low-cost competitors on debt structure in the airline industry. I use the …

Ever since airline deregulation in the late seventies, airlines have been operating in a tough environment perpetuated … September 11, bird flu, consumer preference, disposable income, the financial crises of 2008-2009, airline consolidations, and … have to navigate on a day-to-day basis. This article addresses whether there exists a relationship between an airline …

Operating leverage increases profitability and reduces optimal financial leverage. Thus, operating leverage generates a … negative relation between profitability and financial leverage that is thought to be inconsistent with the trade-off theory …, but is commonly observed in the data. We demonstrate the effect of operating leverage on firms' profitability and …