Southwest Airlines is an exuberant, no-frills airline that was started more than 30 years ago. WestJet Airlines has followed Southwest's successful corporate strategy, which is based on "keeping airplanes in the air." Selected data from Southwest's annual reports appear below (in millions of dollars):

Similar data for WestJet Airlines for fiscal year 2009 were provided earlier in this chapter.
Required:
1. Compute the percentage of property and equipment, net to total assets, for both companies each year. Why might the two ratios differ?
2. Compute the percentage of the property and equipment that has been depreciated for each company for the most recent year. Why do you think the percentages differ?
3. Compute the fixed asset turnover ratio for the most recent year presented for both companies. Which has the higher efficiency in using assets? Why?
4. Would you expect Southwest's ratios to increase or decrease over time? Why? What about WestJet's ratios?

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December 31 2009 2008 Property and equipment, at cost Less allowance for depreciation $15,888 $15,871 5,254 4,831 10,634 11,040 Total assets 14,629 14,068 Total operating revenues for the year 10,350 11,023 Southwest uses the straight-line depreciation method.