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Author Topic: Depreciation / Base Accounting  (Read 224 times)

Offline LemonButt

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  • Posts: 1895
Depreciation / Base Accounting
« on: January 16, 2014, 07:05:52 PM »
1. Right now, it appears depreciation goes under a single line item for operating expenses.  If you are leasing out aircraft, the leasing revenue shows under "other revenues/expenses", but the depreciation expense on those aircraft shows up in the "operating revenues/expenses" section and skews the results.  There should be an extra line item for depreciation under "other revenues/expenses" to break out the depreciation on leased out aircraft.

2. The income statement by base airport is largely useless IMO because many expenses are assigned to the HQ airport only versus prorated or otherwise distributed across all bases.  Training/marketing/alliance expenses are all assigned to the HQ airport and the net result is my HQ is bleeding $5 million/week and my 3 base airports are collectively earning a $15 million/week profit for a net of $10 million.  Unless I crunch my own number manually, I have no idea if my base airports are profitable or not (or whether my HQ is really losing money).

 

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