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Old 10th October 2017 | 13:30
  #1012 (permalink)  
canberra97
 
Joined: Nov 2006
Posts: 2
Likes: 1
From: Southampton
Originally Posted by runway30
If I was an airline changing from an all Airbus fleet to an all Boeing fleet I would want Boeing to pick up the costs of introducing the new fleet which would give a substantial discount off the list price. If that order was converted into a sale and leaseback it would leave the discount for fleet transition that could be paid in cash and fund new investment in the airline. However the costs of introducing the new fleet would now have to be taken as a provision against future profits. It would mean cash now but create future liabilities. Anyone with an interest in the strength of the balance sheet, such as the CAA, would probably be misled and probably not very happy.
But Boeing were assisting Monarch in their transition from Airbus as they helped finance the deal for the 737MAX plus full support for the pilot training amongst other things.
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