OPPapers.com Essay Index >> Business >> Delta Airlines
We have many free term papers and essays on Delta Airlines. We also have a wide variety of research papers and book reports available to you for free. You can browse our collection of term papers or use our search engine.
Delta Airlines While sitting in Atlanta's Hartsfield International Airport, one cannot help but to notice and feel an overwhelming dominant presence of one particular
Delta Airlines A combination of economic recession and the attacks of September 11, 2001 have caused substantial problems for the aviation industry resulting in
Delta/Northwest airlines some questions Change management Delta/Northwest airlines. 1- With the merge, why is it that the management team of both companies focuses
Delta Airlines Contact Center : Analyisis Of The Country Options Index INTRODUCTION 3 STRENGTHS 4 WEAKNESSES 4 OPPORTUNITIES 5 INTEGRATION OF THE DISCUSSION 6 THREATS
Delta, Northwest Airlines, and Vancouver Airport: The Business Value of Customer Introduction Delta Airlines, along with many of its major competitors within the
Submitted by bleda on March 17, 2006
Category: Business
Words: 323 | Pages: 2
Views: 202
Popularity Rank: 69,345
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Depreciation at delta Air Lines and Singapore Air Lines
1)
(a) For DELTA (per $100 of gross aircraft value)
Prior to July 1, 1986: (100-10)/10 = $9/ year
From July 1, 1986 through March 31, 1993: (100-10)/15 = $6/year
From April 1, 1993 on: (100-5)/20 = $4, 75/year
(b) For SINGAPORE (per $100 of gross aircraft value)
Prior to April 1, 1989: (100-10)/8 = $11, 25/year
From April 1, 1989 on: (100-20)/10 = $8/ year
2) The method for accounting depreciation expense in both airline companies is same that they are both using the straight-line basis. But the assumptions for salvage value and depreciation lives are different between Delta and Singapore airlines.
Companies prefer to depreciate aircraft using different salvage value and depreciation lives because of the managerial decision /policies about the recording the depreciation expense. SING prefers to record their depreciation expense in short period so that they can decrease their profit to pay less tax. While they have enough net profit, it is beneficiary for them to follow this policy.
While there are no fixed rules for the treatment, and it is decided by each company management, we can say that the treatment is proper as per their company policy.
3) In April 1, 1993 hey change their rules for depreciation and as a result (from question 1 above) they started to record $4,75/year instead of $6/year per $100 of gross aircraft value, which makes 21% decrease in their depreciation expenses.
If they used the Singapore's depreciation assumptions, the depreciation expense was going to increase from $6/year to $8/year per $100 of gross aircraft value, which makes 33% increase.
4) Their gain is that they have a newer fleet and also can expense more depreciation resulting in decrease in their net payable tax and increasing their...
You must Login to view the entire paper.
If you are not a member yet, Sign Up for free!