Originally Posted by
Rated De
Different airlines use different schedules, mostly straight line with varied terms. Cathay Pacific use 20 years from memory and 25 for freighters, Singapore 15 years, both to 10% residual value.
Qantas are the same 10-20 years between the various aircraft.
Amazingly a write down is subject to management timing and discretion: A little nudge to auditors and 'oh the book value is too high compared to the second hard market' and the write down gets done...
Ever wonder why Mr. Joyce predicted exactly when Qantas mainline was to be profitable again? Not only did his bonus depend on it, the timing was his to start with...
Exactly...will be good for share price in the interim and the CEO gets
paid or bonuses upon...the creation of share holder value and you don't see them complaining since the shares were at rock bottom do you?