Originally Posted by
wheels_down
For what reason does QF persist on hanging onto the A380 fleet while every other carrier in existence signed 10 year leases and is walking at year 10?
Why does the QR/SQ strategy of short term high turnover lease agreements not seem to apply to QF?
I understand all the tax and depreciation issues we face here, but surely they would still be better off handing back the keys at the ten year mark and write off subsequent losses. It’s the 10-20 year mark that seems to be financially and operationally destructive.
This is a very good discussion.
Leaving aside the depreciation and taxation differences, there has been a drain of knowledge from QF.
Ironically, they seem to have little problem rolling and renewing fleet for JQ, ultimately though the aircraft are owned by Qantas and the QF carries the book value, real or imagined.
Given Little Napoleon has sold most of the silverware including the buildings, catering and even terminal leases, overpriced aircraft are all they really have as assets with which to leverage.
It was long a concern for many analysts that Qantas carried long-haul fleet on the books for far more than they were really worth in the second hand market.
Suffice to say as the reason for the 'biggest loss' and stunning' transformation' an aircraft write down provides great leverage for nefarious management, as well as a personal enrichment scheme when 'fortunately' one has a whole bunch of well timed options.