ABSTRACT
This chapter provides an overview of the role of finance in industry, and in particular, for the airline industry. It discusses the globalization of the airline industry, and the financial consequences of these developments. The chapter introduces the reader to the important concepts of accounting and economic profits. It also provides an overview of the various forms of business organizations that a firm might choose and how they may affect finances and the complications that may arise from the organization selected. The airline industry is one of the largest users of oil in the economy, requiring huge amounts of jet fuel to operate every day. Because of this, the impact of a change in the price of oil has a substantial impact on the airlines, and it may ultimately be the difference between profitability and loss. One of the unique aspects of airline transportation is the international nature of the business.
