|Avis will have difficulty in making its debt paymentss|
|Do not expect growing profits in this environment.|
Avis Budget Group (NYSE: CAR) is the largest publicly-traded car rental company in the U.S. It manages a fleet of approximately 350,000 cars and trucks through 6,500 locations and two highly recognized brands, Avis and Budget. In 2009, Avis Budget generated over 81% of its revenue from airport locations. Its Avis and Budget brands combined have a significant market share in the airport car rental business when compared to competitors such as Hertz. However, privately-held Enterprise Rent-a-car is more than twice as large as runner-up Avis Budget by market share. Enterprise generates most of its revenue from local, off-airport locations.
The Avis brand represented about 61% of 2009 revenues, followed by Budget's 32%, and finally 7% by Budget Trucks. In 2009, the company completed over 23 million vehicle rental transactions, and earned $4.0 billion in total car rental revenue.(Read more at Wikinvest )