Originally Posted by
AutoBrksMedium
Unless the airline is being used to show losses for tax purposes while the "real money" is made elsewhere. How is money made on leases? Does Indigo lease aircraft to itself???
The last earnings call an investor complained to Barry that it seems Frontier is more concerned about making money with leases than flying people. It’s a little hazy but my understanding is as such…
Example: We order a group of planes for 70M each. The day we would be required to fork over the money to Airbus for a plane we sell that order to the lessor for 100M. In exchange we sign a lease term on that aircraft to that lessor for 400k per month. Company shows it as we made 30M on the quarterly report.