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Although Singapore Airlines also moved to reduce the speed of depreciation but the actual number is quite different. For example, Delta Air Lines?depreciation ratio changed from 9% to 6% and again to 4.75%. But Singapore Airlines?depreciation ratio changed from 11.25% to 8%.
In the short term, reducing depreciation speed decreases Operating expenses and increases Net Income...
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But Singapore Airlines?depreciation ratio changed from 11.25% to 8%.
In the short term, reducing depreciation speed decreases Operating expenses and increases Net Income. Because Delta Air Lines experienced continuous losses from 1991 to 1993, they wanted to show better figures to their share holders, I think...
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General points of the essay
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