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Depreciation

Aviation Departure timeDepression

Depreciation
Depreciation is necessary for companies that have planes in assets. Depreciation is a method to account for assets whose value decrease over time because of factors such as age, wear or market conditions.

 


DEPRECIATION Method to account for assets whose value decrease over time because of factors such as age, wear or market conditions.

ACCELERATED DEPRECIATION
When depreciation is higher than normal rate, normally used for tax purposes.
ACMI LEASE
Abbreviation Aircraft, crew, maintenance and insurance lease (see Wet Lease) ...

net income - What remains after subtracting all the costs (namely, business, depreciation, interest and taxes) from a company's revenues. An important measure of how profitable a company (or industry) is over a period of time.

Because airlines own large fleets of expensive aircraft which depreciate in value over time, they typically generate a substantial positive cash flow (profits plus depreciation). Most airlines use their cash flow to repay debt or acquire new aircraft.

amount of fuel needed (to complicate matters, fuel may cost different amounts at different airports),
actual flying time affects depreciation charges and maintenance schedules etc., ...

In some types of airplanes, the oil will drip from the engine compartment and flood over the rubber shock absorbers, which produces the rotting effect on the cable, thereby weakening it and resulting in premature depreciation.

See also: Aviation, Flight, Service, Pilot, Aircraft

Aviation Departure timeDepression

 
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