FlyerTalk Forums - View Single Post - BA postpones retirement of 737-400 fleet
View Single Post
Old May 28, 2009 | 3:03 am
  #6  
bernardd
10 Countries Visited
20 Countries Visited
30 Countries Visited
15 Years on Site
 
Join Date: Jan 2007
Location: Mostly AUS or rural England
Programs: BAEC redundant Bronze, AAdvantage Lifetime PLT, CO, WN, B6
Posts: 6,527
Originally Posted by spotwelder
If BA own these aircraft, then their recent book value will have dropped to close to zero for sale. I do not know what value they were given in the latest annual accounts. I do not see a significant sale price being put on these aircraft for the next few years. Therefore, they may actually be a zero value item. What games the accountants then play in terms of profitable routes from LGW could then be significant. The depreciation on a 319 per seat per sector is significant.
One thing BA didn't detail but which must be implicit in their statement is they must be defering deliveries of some A320 series aircraft. One obvious gain is less cash going on of the door on payments of whatever form, though that will be offset to some extent by higher mainenance costs.
bernardd is offline