Originally Posted by
number_6
I've heard claimed that SQ and EK have a great advantage in capital cost, in part due to accelerated depreciation on their planes
SQ gets very favourable depreciation rates on their planes. EK can't claim any depreciation because it pays no tax to claim it against. Even though their situations are the opposite of each other, the outcome is the same. It is highly advantageous for SQ and EQ to sell their aircraft when they are still quite young, before the resale value drops too much and maintenance costs increase.
QF could set up a subsiduary in Singapore and take advantage of the more favourable depreciation rates but it will never escape corporate tax.
Originally Posted by
Lonely Flyer
I suspect that QF lease most of their aircraft.
If so I understand that depreciation would not apply.
But the cost of the lease would be part of the cost of doing business. QF wouldn't be paying tax on that money anyway.