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Forum: Rotorheads
26th Jan 2020, 14:06
Replies: 34
Views: 20,551
Posted By Blackfriar

Well if no-ne is making money, suppliers will...

Well if no-ne is making money, suppliers will close down reducing capacity and the price to the oil companies will go up until operators are making money again.

How would the customer operate if...
Forum: Rotorheads
26th Jan 2020, 14:00
Replies: 34
Views: 20,551
Posted By Blackfriar

Even if you pay for it in cash, the only affect...

Even if you pay for it in cash, the only affect on Profit will be the depreciation - i.e. one-20th of the cost (more or less depending on the type of asset).
Cash flow and profit are not the same.
Forum: Rotorheads
26th Jan 2020, 13:53
Replies: 34
Views: 20,551
Posted By Blackfriar

Investment in hangars and terminal will be fixed...

Investment in hangars and terminal will be fixed assets and depreciated over 10-25 years, so apart from a fractional increase in annual costs it doesn't affect annual profit.
MBAs have some value...
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