Consider the following airline industry data from mid-2009:

Company Name	Market Capitalization ($ million)	Total Enterprise Value ($ million)	Equity Beta	Debt Ratings
Delta Air Lines (DAL)	4965.2	17032.2	1.997	BB
Southwest Airlines (LUV)	4888.9	6379.5	0.961	A/BBB
JetBlue Airways (JBLU)	1292.2	3899.8	1.907	B/CCC
Continental Airlines (CAL)	1071.9	4356.1	1.924	B

1. Use the estimates in table:

By rating	A and above	BBB	BB	B	CCC
Average beta	< 0.05	0.1	0.17	0.26	0.31
By maturity (BBB and above)		1-5 Yr	5-10 Yr	10-15 Yr	> 15 Yr
Average beta		0.01	0.06	0.07	0.14

to estimate the debt beta for each firm (use an average if multiple ratings are listed).

b. Estimate the asset beta for each firm.

c. What is the average asset beta for the industry, based on these firms?