Capital Expenditure
In the context of aviation, Capital Expenditure (CapEx) refers to the funds used by an airline or aviation company to acquire, upgrade, and maintain physical assets such as aircraft, buildings, hangars, or technology systems. This could include purchasing new aircraft, upgrading existing aircraft with more advanced technology, or improving airport facilities. Capital Expenditure is a crucial aspect of an airline's operations as it directly impacts the company's capacity to serve its customers and compete effectively in the market. It is a long-term investment that is expected to benefit the company for many years. The decision to incur a capital expenditure often involves a significant commitment of resources, and therefore requires careful planning and analysis. The amount and timing of capital expenditures can significantly affect an airline's financial performance and cash flow. Therefore, it is closely monitored and controlled by the company's management and stakeholders.
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