Originally Posted by Blueskymine
Jetstar doesn't own anything to depreciate
Next.
Correct....
But the people who lease the plane to Jetstar charge a Lease Charge.
(even if the said aircraft is sitting on the ground
)
This charge effectively includes depreciation (that the lessor suffers) and purchase cost (interest and dividend/profit)...
Thus it is much easier for Qantas to be EBITDA or cashflow positive, compared to Jetstar
--
Thus the other way of looking at the statement that QFi is cashflow positive but can't cover depreciation
is that if QFi sold all its aircraft to a Lessor today (or put them in a standalone vehicle) and charged a market lease rate,
then QFi would be cashflow negative