The Principles of Effective Cost Management and Capital Structure
It’s just a god-awful time for this industry. This illustrates the uncertainty of capital markets to a T.
—Bob Mann, Independent airline consultant, responding to airline bankruptcies
Assessing an aircraft’s value to an operator requires determining the potential cash flows the aircraft may generate over the life of the asset, as well as the impact of financing the aircraft on the company’s financial statements. Hence, it is necessary to understand each element of the cash costs. An aircraft is expected to remain in service for 30 years or more. By understanding the costs of ...