Working Capital Landing: A Comparative Study About the Extent of Impact of Working Capital in the Context of ‘Air India’ & ‘Indigo’ Airlines
Sayyad Saadiq Ali1, K. Hema Divya2
1Sayyad Saadiq Ali, Research Scholar, Department of Commerce & Management, Koneru Lakshmaiah Education Foundation, Green Fields, Vaddeswaram, Guntur (Andhra Pradesh), India.
2Dr. K. Hema Divya, Associate Professor, Department of Commerce & Management, Koneru Lakshmaiah Education Foundation, Green Fields, Vaddeswaram,, Guntur (Andhra Pradesh), India.
Manuscript received on 07 April 2019 | Revised Manuscript received on 20 April 2019 | Manuscript published on 30 April 2019 | PP: 170-176 | Volume-8 Issue-6, April 2019 | Retrieval Number: F3621048619/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In current situations management of transportation business in a successful manner via airlines is a very challenging task due to the reason of newly emerging services in airline business to fulfil the dream of common man to fly in the sky at all. Most of the airline companies are coming with price cutting strategies to capture the market share. All these measures direct towards spending more investment in creative products and services. Working capital plays a highly predominant role in these contexts of spending, retaining and capturing the market. In this study an analysis of changes in working capital in Air India and IndiGo airlines has been carried-out to know the extent of influence of working capital on the liquidity status of Air India. From the results of analysis, it has found that the standard deviation in case of all components in Air India is higher than in case of IndiGo airlines. The coefficient of variation of current assets and current liabilities is higher in case of IndiGo airline. The coefficient of variation of total working capital in case of Air India airline is negative. From the ratio analysis, it has found that all the liquidity ratios are far behind than ideal parameters in case of Air India than in IndiGo airlines.
Keyword: Current Assets, Current Liabilities, Liquidity Ratios, Quick Ratio and Absolute Liquid Ratio.
Scope of the Article: E-Commerce