Originally Posted by
PinnacleFO
I disagree with you dash the only thing management at these places see is the dollar sign republic has 24 emb 145s they can get rid of and bring on emb 175s. Delta is trying to reduce their debt. What better way to do it than let someone else buy it. United and usair let republic fly for them delta probably doesn't care either.
You are logical but that's why your Wrong
The only way RAH or SkyWest will buy aircraft is with a longterm CPA from DAL. If they can't get that long term commitment they won't want to purchase aircraft they would be stuck with should they fall out of favor. That is why you will probably see DAL hold the leases on these planes and then be able to move them when one carrier steps out of line.
Also, under a capital lease, the lessee has pretty much all the benefits and risk of ownership. So the lessee (SkyWest, RAH, etc.) reports the leased asset on their balance sheet as an asset (equal to price of the lease) and as the lease as liability (price of the lease), thus essentially transferring it off of DAL's balance sheet (in the amount equal to the lease). Instead of it being listed as an expense (like say you renting a car), which is an operating lease.
Oh the wonderful dark world of accounting!