Originally Posted by
MSPeconomist
Does this mean that $400M is the cost of terminating a lease early for the four 747s that were sent to rest?
I don't see the logic of paying $400M now to save $100M next year and giving up some assets in the process but I'm not an accountant.
I don't know exactly how the costs work out. It may be some accelerated depreciation on the fleet refurbishment, or it may be early lease termination. Or some combination. And it's hard to know whether the math pencils out, without knowing how long they're saving $100M. I missed this part of the call, but it looks like they're planning all of the 744s to be gone by end of 2016, meaning the savings go up, but the one-time charges go up too, most likely. Without access to the whole ledger, though, we're just guessing.