Why do leasing aircraft need to pay for depreciation?
For example, if you rent a flat, you will not be told to pay depreciation.
There is no depreciation for leased aircraft.
Hi,
If you see any amount of money next to "depreciation" and you don’t own any aircraft, you probably refurbished a plane or ended it’s lease.
Plus, you don’t pay it anyway… you have paid for the seats when you bought them. But seats are considered an investment. As such, they are mentioned in your balance and added to your equity. When you end the lease of a plane, or refurbish a plane, you loose the seats. The value of the seats is removed from your investments.
If you own planes, they loose value as they age. That also shows as depreciation, and your equity goes down with the same amount of money.
Jan