Depreciation with no plane ownerships.

Hello,

As far as I know depreciation of flight equipment only occurs when you own a place.

Yet despite only leasing planes I suddenly got a large cost for depreciation of flight equipment, a cost I have not had during all the other weeks of my operations!

I just wish to know where this cost came from, as it could possibly lead to a rescue loan as I took a risk getting a new plane (a large airline just closed in ellinikon flooding the plane market) with not much money in stock.

Cheers, Benostew

Did you change the seating config on any plane?

Depreciation is only an accounting cost item, it's not a cash outflow.

Did you change the seating config on any plane?

I did indeed, would that be the source of the cost?, because the cost of that came a while after I changed

I did indeed, would that be the source of the cost?, because the cost of that came a while after I changed

No, you were charged the installation for the new seat layout/cabin config.

For the old cabin config you disposed of, it has to be depreciated. And again,

Depreciation is only an accounting cost item, it's not a cash outflow.

It's basically a virtual cost. It's real in accounting, but it's physically non-existent, thus you can imagine it as a virtual cost.