philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Nov 5, 2019 12:26:57 GMT 1
I don't really get it, none of the Air France A380 have been removed from service yet?.. This is the usual different between accounting charges and cash flows. As soon as you make the decision to retire the aircraft, you must provide for the upcoming costs resulting from your decisions. This means an immediate accounting charge, even though the payment will happen later.
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philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Nov 5, 2019 13:00:54 GMT 1
There is though one significant difference here whether it is leased or owned. If owned the loss here is just an accounting loss, while leased it also has a cash effect, as the airline then has to pay up Of course, to own the aircraft you must fund the purchase upfront !
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