Staff View: Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman

Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman

The main purpose of this case study is to benchmark the working capital management performance (WCM) among Air Asia, Malaysia Airlines, and Qantas with an intention to identify the best practices in WCM to enhance operational efficiency in cash flow from operations. This case study is conducted by e...

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Main Authors:	Abdul Nasser, Abu Thahir, Samaf, Omar, Amiruddin Othman, Ahmad Marzuki
Format:	Article
Language:	English
Published:	Research Management Institute (RMI) 2010
Subjects:	Total quality management. Benchmarking Working capital
Online Access:	https://ir.uitm.edu.my/id/eprint/13079/2/13079.pdf https://ir.uitm.edu.my/id/eprint/13079/ https://smrj.uitm.edu.my/
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id	my.uitm.ir.13079
record_format	eprints
spelling	my.uitm.ir.130792023-04-10T05:21:31Z https://ir.uitm.edu.my/id/eprint/13079/ Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman smrj Abdul Nasser, Abu Thahir Samaf, Omar Amiruddin Othman, Ahmad Marzuki Total quality management. Benchmarking Working capital The main purpose of this case study is to benchmark the working capital management performance (WCM) among Air Asia, Malaysia Airlines, and Qantas with an intention to identify the best practices in WCM to enhance operational efficiency in cash flow from operations. This case study is conducted by employing generic benchmarking among Air Asia a low cost airline, Malaysia Airlines and Qantas full service airlines, with an intention to provide valuable insights into operational efficiency and the pattern of current assets investment and financing policies adopted in the airline industry. "Cash conversion efficiency", a financial performance indicator is used to measure the operational efficiency, while "Days of working capital" a non financial performance indicator is used to identify the current assets investment and financing policies adopted in the firms studied. The findings of this study reveal that the low cost airline out performs the government and private owned full service airlines in the WCM. The government and private owned full service airlines studied do not have sufficient fund for their working capital requirement and the existing working capital in all the three airlines studied have not been utilized efficiently. This study also identifies an inverse relationship between the aggressive level of working capital financing and the cash conversion efficiency. Currently there is no available literature focusing exclusively on the WCM performance in the airline industry which may throw new light and facilitate the process ofimproving cash flow from operations and reducing the cost ofcapital. A better understanding ofthe WCMpractices in airline industry is especially beneficial because ofthe needfor efficient utilization ofthe working capital employed to achieve enhanced operational efficiency. Research Management Institute (RMI) 2010 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/13079/2/13079.pdf Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman. (2010) Social and Management Research Journal (SMRJ), 7 (1). pp. 1-21. ISSN 1675-7017 https://smrj.uitm.edu.my/
institution	Universiti Teknologi Mara
building	Tun Abdul Razak Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Teknologi Mara
content_source	UiTM Institutional Repository
url_provider	http://ir.uitm.edu.my/
language	English
topic	Total quality management. Benchmarking Working capital
spellingShingle	Total quality management. Benchmarking Working capital Abdul Nasser, Abu Thahir Samaf, Omar Amiruddin Othman, Ahmad Marzuki Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman
description	The main purpose of this case study is to benchmark the working capital management performance (WCM) among Air Asia, Malaysia Airlines, and Qantas with an intention to identify the best practices in WCM to enhance operational efficiency in cash flow from operations. This case study is conducted by employing generic benchmarking among Air Asia a low cost airline, Malaysia Airlines and Qantas full service airlines, with an intention to provide valuable insights into operational efficiency and the pattern of current assets investment and financing policies adopted in the airline industry. "Cash conversion efficiency", a financial performance indicator is used to measure the operational efficiency, while "Days of working capital" a non financial performance indicator is used to identify the current assets investment and financing policies adopted in the firms studied. The findings of this study reveal that the low cost airline out performs the government and private owned full service airlines in the WCM. The government and private owned full service airlines studied do not have sufficient fund for their working capital requirement and the existing working capital in all the three airlines studied have not been utilized efficiently. This study also identifies an inverse relationship between the aggressive level of working capital financing and the cash conversion efficiency. Currently there is no available literature focusing exclusively on the WCM performance in the airline industry which may throw new light and facilitate the process ofimproving cash flow from operations and reducing the cost ofcapital. A better understanding ofthe WCMpractices in airline industry is especially beneficial because ofthe needfor efficient utilization ofthe working capital employed to achieve enhanced operational efficiency.
format	Article
author	Abdul Nasser, Abu Thahir Samaf, Omar Amiruddin Othman, Ahmad Marzuki
author_facet	Abdul Nasser, Abu Thahir Samaf, Omar Amiruddin Othman, Ahmad Marzuki
author_sort	Abdul Nasser, Abu Thahir
title	Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman
title_short	Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman
title_full	Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman
title_fullStr	Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman
title_full_unstemmed	Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman
title_sort	working capital management performance in air asia, malaysia airlines and qantas / abu thahir abdul nasser, omar samaf and ahmad marzuki amiruddin othman
publisher	Research Management Institute (RMI)
publishDate	2010
url	https://ir.uitm.edu.my/id/eprint/13079/2/13079.pdf https://ir.uitm.edu.my/id/eprint/13079/ https://smrj.uitm.edu.my/
_version_	1762841147103772672
score	13.211869

Working capital management performance in Air Asia, Malaysia Airlines and Qantas / Abu Thahir Abdul Nasser, Omar Samaf and Ahmad Marzuki Amiruddin Othman

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