Since the large outlay at the beginning of a plane's lease represents 4 months pre-payment, when does the effect of pre-paying the lease get felt? Are there 4 months during the lease term where I have no lease payment? Or is not a pre-payment, but rather a "transaction fee" that is not recouped?
You pay the fee for renting the plane for 4 months in one payment, and after 4 months you pay the normal monthly fee. It help you to buy time building your image, and to let people know about your airliner.. which can take quite a while to build up :)
i've had payment in my income statement aircraft leases from the beginning, are there other cost that are grouped into aircraft leasing? I also get the weekly aircraft leasing cost in my aircraft page
Quote from: Echoco on January 15, 2009, 10:39:55 PM
i've had payment in my income statement aircraft leases from the beginning, are there other cost that are grouped into aircraft leasing? I also get the weekly aircraft leasing cost in my aircraft page
The leasing cost also includes the initial sum of those 4 months, so if you have leased a lot of planes during the first 4 months, then it will show negative. Also, you may have been watching at the monthly or yearly statistics, which then shows also the 1st lease, so then that is always negative.
Quote from: Echoco on January 15, 2009, 10:39:55 PM
i've had payment in my income statement aircraft leases from the beginning, are there other cost that are grouped into aircraft leasing? I also get the weekly aircraft leasing cost in my aircraft page
It's statistical value. You paid it once, but it's divided to longer period in the my aircraft page. Income statement shows real money traffic.