ABSTRACT
Management of current assets and current liabilities is one of the most important functions of financial managers. As the quote above makes abundantly clear, in order to operate effectively, an airline must be aware of its short-term financial position. Therefore concepts such as managing cash and working capital, short-term financing, current assets and liabilities management, and managing inventory are all important to the everyday operation of an airline. The critical question is: how much cash or current assets are required to have a financially successful company? As in all other financial decisions, the amount devoted to cash and current assets is a trade-off that involves informed decision-making on the part of financial managers.
