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Old 11th Jan 2018, 04:49
  #31 (permalink)  
Rated De
 
Join Date: Sep 2017
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IFRS 16 is making big waves in many transport oriented companies.

It is exactly why Qantas is bringing the aircraft on balance sheet.

To students of airline finance, it is really interesting the structure of the so called 'Low Cost Carrier' versus the more traditional approach.

Depreciation comes out before a net profit is declared. If you only lease a fleet and don't need to depreciate it, before this change you had the asset value on balance sheet (if you so chose) without the pesky debt associated with ownership...

Perhaps the tide has gone out on the shell game?
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