Originally Posted by
Sorry Dog
Any business standard, really?
Well please tell me what business standard is something that is given for free not a subsidy?
Let me spell it out for you then...
In finance, most large loans and /or large deals have a guarantor written into the contract to give the counter parties some recourse in event of default. In the case of a loan, in exchange for this risk sharing the terms of contract will be more favorable to borrower, or basically a lower interest rate. In the case of the ME3 or Qatar especially, the government becomes the guarantor, and in the that case the risk of default becomes extremely small. The price of the loan can then be significantly lower.
In the case of an airline, the 2 largest expenses are financing and fuel. So, we just covered financing. I'll cover fuel later today...
In case you are wondering, I have no connection to Delta or other legacy operators... just calling like I see it.
Would Deltas codeshares in SkyTeam that are govt subsidized and thus guarantor also use loans that are significantly lower?