Originally Posted by
FD1971
It did not change, 12 years down to 15% is used since a long time.
In the regulated ´cost plus accounting´ era, when airlines had to produce costs, depreciation was, of course, faster.
P.S.
BA used to depreciate over twenty years down to 10 % using the straight line method as well. Delta up to 25, in some cases, 30 years down to 10%
Thanks, good information, but I was really looking to find out what formula(s) were used to calculate depreciation in the years that the schedules were not linear.
Accelerated depreciation has usually only second-order effects on accrued expenses and asset values, but when investment decisions are strictly numbers driven, depreciation schedules can affect repair/replace decisions around the margins a little bit.
OTOH, if you believe in the power of cash flows, depreciation schedules are more of an accountant employment thing, and/or maybe a rough reminder of when it is time to think about re-investing in long-term assets.
