Virgin's Aircrafts
Feb 7, 2003, 12:10 pm
#1
Original Poster
Join Date: Apr 2002
Location: Hong Kong
Programs: SQ Elite Gold, LH Senator, NW SilverElite, CX & BD
Posts: 135
Virgin's Aircrafts
Does virgin leases all their aircrafts? if yes then why do they do it? what are the disadvantage and advantages? Thanks a lot guys
Feb 8, 2003, 6:45 am
#2
Original Member
Join Date: May 1998
Location: London
Programs: BA Gold, ex-BD Gold, SPG Gold, HH Gold
Posts: 2,040
I'm not sure what Virgin's practice is, but the decision to own versus lease usually depends heavily tax and balance sheet considerations; under various tax and accounting rules many types of lease payments can often be expensed, whereas an asset purchased outright must be depreciated over its expected useful life. Of course this is speaking generally; I am not an expert on the tax and accounting treatment of aircraft leases or on the relevant regulations in Virgin's home jurisdiction(s).