|Quoting snehnath (Reply 10):|
Quoting lightsaber (Reply 6):
Link? The issue with 'good news' on AI is that it often doesn't withstand scrutiny. When AI is able to stand as an independent business it will be given a fair evaluation here on a.net. But the reality is these will be bought with loans backed by the GoI not with free market financing
Here you go...
Ok, so if IX
were a separate division it would be on paper profitable, but how much of its expenses were shifted to other divisions to achieve the going forward. For example, what is the overhead rate charge Air India Express by corporate for management? Is that included? AI
maintenance is losing money, was Air India Express billed for maintenance at a break even or did the losses in engineering mask the losses at Air India Express?
The accounting at AI
is so opaque... it is disturbing. So while I am sure as booked the division of Air India Express made a profit, what I do not know is how services Air India Express received from corporate were accounted for and thus I remain skeptical.
Seriously, could I please have a link to the last 5 years of Air India annual reports? I never trust one quarter or even a few years of data. I look back to see if there are any skeletons. The big example of this was Crystler when Daimler bought them. The WSJ noted their low depreciation of leased vehicles which eventually triggered BILLIONS of losses for Daimler. I have no trouble looking into such details for DL
, and a few others. So let us delve into AI
A common way for airlines to show a short term profit is to alter (or even suspend) aircraft depreciation.
For example, in good years SQ
aggressively depreciates their airframes while in bad years they slow to more 'industry standard' depreciation. The cash flow is the same...
What is Ai's depreciation schedule anyway? What types of leases are the signed up for (how much of the downstream depreciation is AI
either at risk for or possibly to benefit)?
|Quoting dtw2hyd (Reply 23):|
Absolutely wrong. Indian Tax Payers so far paid the "gap" on "minimum payments". Nothing more. Its all either EXIM guaranteed commercial prime loans or sub-prime commercial loans. They are not even sovereign counter guaranteed.
Are you certain? When I Google for "Sovereign guarantee Air India" there were quite a few links. Now, I'm not certain on various aircraft types as I didn't go through the myriad of sovereign guarantee loans out to Air India. Is there a nice summary kept up to date online?
For example, here is an example of AI
getting their 2nd batch of loans in 2013 with sovereign guarantees:
If there is a gap on minimum payments, that implies a lease structure with a fluid term based on ROI for the leasing company. Has AI
published their lease terms?
Flu+Covid19 is bad. Consider a flu vaccine, if not for yourself, to protect someone you care about.