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Old 29th August 2003 | 19:51
  #43 (permalink)  
Alloy
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Joined: Aug 1999
: ATPL
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From: Al tube.
fiftyfour

A little knowledge can be a dangerous thing. The CAA figures you quote do not state the full financial health of several of the airlines quoted. With airlines the purchase of one aircraft can subtract £50M to the bottom line thus showing a huge financial loss but at the same time add substantially to the airlines assets.

Fortunately in this instance you cannot take the profit of £300000 as the definitive actual profit figure. The reason being Monarch is one of a group of companies that is ultimately owned by the same family. One of these sister companies is an aircraft leasing company that owns aircraft several times the fleet size of Monarch Airlines. The group of companies can make a substantial profit but the airline will not show this because the lease rates from the sister company have increased. It is one of the reasons for employing accountants and makes the most of tax liabilities.

If you look at the Virgin group then you could speculate on something similar.
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