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Hi sir,
First of all, I really apologize for asking the question on this forum since its regarding the BSc project but it has a lot of P7 characteristics in it.I have a very small doubt. Could you tell me what would be the inventory for any airline company? I thought of the fuel, but they are not buying and selling it on a daily basis. Its an expenditure. Its neither the aircrafts since they are the non-current assets.
So what exactly would be the inventory of airline companies?Thank you in advance, and I apologize once again..
What a good question!
I believe that the aircraft themselves are more likely to be held on finance lease (could even be operating lease!) rather than actually legally owned by the airline company
I’m not even sure that the stuff that is sold on board the flights as duty free is inventory owned by the airline – I imagine that that could be held on a commission basis (but I don’t know!)
As for food and drink – well, the food is likely to have been fully consumed on each flight but there could be a nominal value of non-perishable drinks at the end of each day
Maybe the fuel does count as inventory – they probably buy a huge amount of fuel each time they buy and not all of that will be used up in one go, so I can see fuel as being a valuable element of inventory
But I can’t think of much else
Does that help?
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