I am tempted to gamble on this and order a bunch of new aircraft on a lease and hope you only start paying when delivered (and from what I can see I am 90% sure this is correct) but ten per cent of me is screaming DONT DO IT.
Do you start paying lease payments on a new aircraft order for ALL aircraft ordered or just when each is delivered?
Not overly interested in taking several million dollars of profit off of myself for two years before the aircraft can even start flying their routes. :laugh: :laugh: :laugh:
You pay a 4-month pre-payment for ALL aircraft at the time you order, and then will only start paying monthly leases for aircraft when they are delivered.
To add to wilian.souza2's response, you don't actually make any lease payments until after the pre-payment has expired. You'll see the weekly payments in your Income Statement for tax purposes, but no cash is deducted until 4-5 months after delivery. (4 months for used, 5 months for new)
Great! Phew.
Thanks for the responses.