Leases are one of the most common means by which companies obtain the use of long...

80.2K

Verified Solution

Question

Accounting

Leases are one of the most common means by which companiesobtain the use of long term operating assets. Lets look at theairline industry and the effect of leasing. What you believe arethe benefits if any as airlines decide to lease versus buyingassets? Why or why not?

Answer & Explanation Solved by verified expert
3.7 Ratings (691 Votes)
Aircraft are considerably expensive purchases especially when buying dozens of them for your airline With orders frequently totaling in the billions of dollars it is hard to imagine how an airline could possibly pay for all of the planes they have Purchasing huge numbers of aircraft can tie up considerable capital and weigh down balance sheets which is not viable for many airlines This is where the aircraft leasing business steps in About    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students