Originally Posted by
number_6
The aircraft leasing spinoff hinted at might have some clever depreciation or currency play that does "save" hundred million+, but in that case it is really a hidden subsidy by the gov'ts involved and may well be challenged by Virgin…
Presumably franchise agreements which force exclusive supply conditions on franchisees?
I am amazed that Jetstar hasn’t already set up a leasing company, based in which ever South East Asian nation has the best depreciation & capital investment regulations, from which all franchisee airlines (JQ, 3K, BL, VF…) must lease their aircraft.
If a joint venture procurement & leasing company was launched in association with AirAsia, together with their existing franchises (AK, D7, QZ, FD…), they have a sizeable captive leasing market – even before anticipated expansion from both brands.