Originally Posted by
sputnik01
Even if there is still a lot of leverage in the aggressive depreciation left, why was this not choosen in the first place?
Now the depreciation period must be massively increased in order to turn the balance somehow a positive direction.
If liquidity is low, the hours paid must still be flown off for the customers, at least the variable costs should be available,
or are required as liquidity?
And the interest on the fixed-cost bond has to be earned in addition to the already very high prices,
while liquidity can then only be increased with the sale of (well depreciated) aircraft? in Shalah!
VJ has always had a very aggressive depreciation so not sure what you mean? At least that's what the owner said in earlier interviews many years ago so no news there really. Interesting to note that they went into the pandemic with the same leverage as they have now... makes me think that this accounting picture from Dec 31st is not the entire picture otherwise they should have been out of business already.