ABSTRACT
While similar to finance, the role of accounting is somewhat different in the airline industry. This role will be explained by examining the impact that accounting has not only on the airline internally, but also on the external industry environment. The American Accounting Association defines accounting as “the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of information” (quoted in Brooks, 2012). With this in mind, this chapter will cover the overall framework of the accounting environment and then introduce several key accounting topics relating to the airline industry-namely, frequent-flier programs and mileage credits, foreign exchange, and the International Air Transport Association (IATA) Clearing House.
