際際滷

際際滷Share a Scribd company logo
2
Introduction of Delta airlines
 Annual revenue $12 billion
 In 1993 third largest airline U.S.
 Operated flights in 33 foreign countries.
 Average age of delta aircraft was 8.8 years
Most read
4
Depreciation
Depreciation is an accounting convention that allow a
company to write-off the value of an asset over time,
but is considered a non- cash transaction.
Depreciation=(assets value- residual value)/asset life.
Most read
Made BY::-
MAYANK AGARWAL
MANISH MUTYALA
THARUNI AMBATI
RUCHI AGARWAL
RENU BISHT
ARJUN P.A.
Introduction of Delta airlines
 Annual revenue $12 billion
 In 1993 third largest airline U.S.
 Operated flights in 33 foreign countries.
 Average age of delta aircraft was 8.8 years
Singapore airlines
 Largest private sector in Singapore economy 1993 at
route network covered 70 cities in 40 countries.
 In 1993, its operating revenue $3.1.
 They would have made it seventh largest airlines in
U.S.
 Average of age of Singapore aircraft was 5.1 year.
Depreciation
Depreciation is an accounting convention that allow a
company to write-off the value of an asset over time,
but is considered a non- cash transaction.
Depreciation=(assets value- residual value)/asset life.
Why the companies depreciate aircraft
using different depreciable lives and salvage
value?
 Due to companies are different and they have different
authority.
 Due to lesser usage and higher maintenance.
 Due to technical.
 Due to need of the time.
Lease
A lease is a contract outlining the terms under which one
party agrees to rent property owned by another party. It
guarantees the lessee, the tenant, use of an asset and
guarantees the lessor, the property owner or landlord,
regular payments from the lessee for a specified number
of months or years. Both the lessee and the lessor face
consequences if they fail to uphold the terms of the
contract.
Operating lease
An operating lease is a contract that allows for the use of
an asset, but does not convey rights of ownership of the
asset. An operating lease represents an off-balance sheet
financing of assets, where a leased asset and associated
liabilities of future rent payments are not included on
the balance sheet of a company.
Capital Lease
A capital lease is a contract entitling a renter to a
temporary use of an asset, and such a lease has economic
characteristics of asset ownership for accounting
purposes. The capital lease requires a renter to add
assets and liabilities associated with the lease if the
rental contract meets specific requirements.
Depreciation of delta airlines  case b
Depreciation of delta airlines  case b
Depreciation of delta airlines  case b
Depreciation of delta airlines  case b
What is the possible reason that the Delta airlines
operates almost half of its aircraft on operating leases,
where as Singapore airlines operates no aircraft on
operating leases?
In the year of inflation the delta airlines focused on cost
cutting by decreasing its staff and reducing flights where
as Singapore airline did not do the same.
Comparable study between the 2 airlines on assets, long
term debt and depreciation expenses in the year 1993.
Delta Airline Singapore Airline
Total assets (in $ millions) 11871 9417
Long term debt (in $
millions)
3717 0
Depreciation expenses (in
$ millions)
679 708
Depreciation of delta airlines  case b
Depreciation of delta airlines  case b
Thank You

More Related Content

What's hot (20)

Aviation Sector In India
Aviation Sector In IndiaAviation Sector In India
Aviation Sector In India
Jatin Tanwar
Indigo strategy execution plan short
Indigo strategy execution plan shortIndigo strategy execution plan short
Indigo strategy execution plan short
Jatinder Singh
Spicejet industry analysis
Spicejet industry analysisSpicejet industry analysis
Spicejet industry analysis
Sana Shariff
Strategy analysis airline industry
Strategy analysis  airline industryStrategy analysis  airline industry
Strategy analysis airline industry
MTM IULM
Singapore Airlines
Singapore AirlinesSingapore Airlines
Singapore Airlines
Kashish Gupta
Strategic Management Case Discussion on Southwest Airline
Strategic Management Case Discussion  on Southwest AirlineStrategic Management Case Discussion  on Southwest Airline
Strategic Management Case Discussion on Southwest Airline
Uun Ainurrofiq (Fiq)
Capacity Management in Airline Industry- A Case Study
Capacity Management in Airline Industry- A Case StudyCapacity Management in Airline Industry- A Case Study
Capacity Management in Airline Industry- A Case Study
Ayat A. Saleh
COMPETITIVE POSITION : INDIGO AIRLINES
 COMPETITIVE POSITION : INDIGO AIRLINES COMPETITIVE POSITION : INDIGO AIRLINES
COMPETITIVE POSITION : INDIGO AIRLINES
Jatinder Singh
Marketing case study on Indigo Airlines
Marketing case study on Indigo AirlinesMarketing case study on Indigo Airlines
Marketing case study on Indigo Airlines
Neelutpal Saha
Project report (1)
Project report (1)Project report (1)
Project report (1)
Amrit Kumar
IndiGo Airlines
IndiGo Airlines IndiGo Airlines
IndiGo Airlines
Kannan Knight
Kingfisher Airlines- A Case Study
Kingfisher Airlines- A Case StudyKingfisher Airlines- A Case Study
Kingfisher Airlines- A Case Study
Chaahat Khattar
Management of IndiGo Airlines
Management of IndiGo AirlinesManagement of IndiGo Airlines
Management of IndiGo Airlines
Gautam Gupta
Thai airways
Thai airwaysThai airways
Thai airways
Amidee Azizan Stringfellow
ppt on indian aviation
ppt on indian aviationppt on indian aviation
ppt on indian aviation
Karan Ahluwalia
Route development
Route developmentRoute development
Route development
Mohammed Awad
Success story of indigo
Success story of indigoSuccess story of indigo
Success story of indigo
Nandita Kumari
Air India ppt
Air India pptAir India ppt
Air India ppt
AzraNadaf1
Operations management - Spice Jet
Operations management - Spice JetOperations management - Spice Jet
Operations management - Spice Jet
rawatsumit27
Airline Revenue - Case Study and Industry Analysis
Airline Revenue - Case Study and Industry AnalysisAirline Revenue - Case Study and Industry Analysis
Airline Revenue - Case Study and Industry Analysis
Frank A.
Aviation Sector In India
Aviation Sector In IndiaAviation Sector In India
Aviation Sector In India
Jatin Tanwar
Indigo strategy execution plan short
Indigo strategy execution plan shortIndigo strategy execution plan short
Indigo strategy execution plan short
Jatinder Singh
Spicejet industry analysis
Spicejet industry analysisSpicejet industry analysis
Spicejet industry analysis
Sana Shariff
Strategy analysis airline industry
Strategy analysis  airline industryStrategy analysis  airline industry
Strategy analysis airline industry
MTM IULM
Singapore Airlines
Singapore AirlinesSingapore Airlines
Singapore Airlines
Kashish Gupta
Strategic Management Case Discussion on Southwest Airline
Strategic Management Case Discussion  on Southwest AirlineStrategic Management Case Discussion  on Southwest Airline
Strategic Management Case Discussion on Southwest Airline
Uun Ainurrofiq (Fiq)
Capacity Management in Airline Industry- A Case Study
Capacity Management in Airline Industry- A Case StudyCapacity Management in Airline Industry- A Case Study
Capacity Management in Airline Industry- A Case Study
Ayat A. Saleh
COMPETITIVE POSITION : INDIGO AIRLINES
 COMPETITIVE POSITION : INDIGO AIRLINES COMPETITIVE POSITION : INDIGO AIRLINES
COMPETITIVE POSITION : INDIGO AIRLINES
Jatinder Singh
Marketing case study on Indigo Airlines
Marketing case study on Indigo AirlinesMarketing case study on Indigo Airlines
Marketing case study on Indigo Airlines
Neelutpal Saha
Project report (1)
Project report (1)Project report (1)
Project report (1)
Amrit Kumar
Kingfisher Airlines- A Case Study
Kingfisher Airlines- A Case StudyKingfisher Airlines- A Case Study
Kingfisher Airlines- A Case Study
Chaahat Khattar
Management of IndiGo Airlines
Management of IndiGo AirlinesManagement of IndiGo Airlines
Management of IndiGo Airlines
Gautam Gupta
ppt on indian aviation
ppt on indian aviationppt on indian aviation
ppt on indian aviation
Karan Ahluwalia
Route development
Route developmentRoute development
Route development
Mohammed Awad
Success story of indigo
Success story of indigoSuccess story of indigo
Success story of indigo
Nandita Kumari
Air India ppt
Air India pptAir India ppt
Air India ppt
AzraNadaf1
Operations management - Spice Jet
Operations management - Spice JetOperations management - Spice Jet
Operations management - Spice Jet
rawatsumit27
Airline Revenue - Case Study and Industry Analysis
Airline Revenue - Case Study and Industry AnalysisAirline Revenue - Case Study and Industry Analysis
Airline Revenue - Case Study and Industry Analysis
Frank A.

Similar to Depreciation of delta airlines case b (8)

chapter_08.ppt
chapter_08.pptchapter_08.ppt
chapter_08.ppt
Dr. Ahmed Hassan, PhD, DBA, PMP
Comparison among industries based on financial ratios
Comparison among industries based on financial ratiosComparison among industries based on financial ratios
Comparison among industries based on financial ratios
Bach Yen Tran
Acc615104 Managerial Accounting Project Report
Acc615104 Managerial Accounting Project ReportAcc615104 Managerial Accounting Project Report
Acc615104 Managerial Accounting Project Report
Tejas Garodia
Portfolio Construction Journal Paper - NGoh2007
Portfolio Construction Journal Paper - NGoh2007Portfolio Construction Journal Paper - NGoh2007
Portfolio Construction Journal Paper - NGoh2007
Nick Goh
DeltaPaper
DeltaPaperDeltaPaper
DeltaPaper
Reagan Farish
BA 580 chap003 leases
BA 580 chap003 leasesBA 580 chap003 leases
BA 580 chap003 leases
BealCollegeOnline
Leasing and their characterisitcs .pptx
Leasing and their characterisitcs  .pptxLeasing and their characterisitcs  .pptx
Leasing and their characterisitcs .pptx
mohanass3
Impact ifrs 16 leases
Impact   ifrs 16 leasesImpact   ifrs 16 leases
Impact ifrs 16 leases
Suresh Swain
Comparison among industries based on financial ratios
Comparison among industries based on financial ratiosComparison among industries based on financial ratios
Comparison among industries based on financial ratios
Bach Yen Tran
Acc615104 Managerial Accounting Project Report
Acc615104 Managerial Accounting Project ReportAcc615104 Managerial Accounting Project Report
Acc615104 Managerial Accounting Project Report
Tejas Garodia
Portfolio Construction Journal Paper - NGoh2007
Portfolio Construction Journal Paper - NGoh2007Portfolio Construction Journal Paper - NGoh2007
Portfolio Construction Journal Paper - NGoh2007
Nick Goh
Leasing and their characterisitcs .pptx
Leasing and their characterisitcs  .pptxLeasing and their characterisitcs  .pptx
Leasing and their characterisitcs .pptx
mohanass3
Impact ifrs 16 leases
Impact   ifrs 16 leasesImpact   ifrs 16 leases
Impact ifrs 16 leases
Suresh Swain
Ad

Recently uploaded (20)

Smart Borrowing: Everything You Need to Know About Short Term Loans in India
Smart Borrowing: Everything You Need to Know About Short Term Loans in IndiaSmart Borrowing: Everything You Need to Know About Short Term Loans in India
Smart Borrowing: Everything You Need to Know About Short Term Loans in India
fincrifcontent
How to Manage Allocations in Odoo 18 Time Off
How to Manage Allocations in Odoo 18 Time OffHow to Manage Allocations in Odoo 18 Time Off
How to Manage Allocations in Odoo 18 Time Off
Celine George
How to Manage Maintenance Request in Odoo 18
How to Manage Maintenance Request in Odoo 18How to Manage Maintenance Request in Odoo 18
How to Manage Maintenance Request in Odoo 18
Celine George
Unit 3 Poster Sketches with annotations.pptx
Unit 3 Poster Sketches with annotations.pptxUnit 3 Poster Sketches with annotations.pptx
Unit 3 Poster Sketches with annotations.pptx
bobby205207
Cloud Computing ..PPT ( Faizan ALTAF )..
Cloud Computing ..PPT ( Faizan ALTAF )..Cloud Computing ..PPT ( Faizan ALTAF )..
Cloud Computing ..PPT ( Faizan ALTAF )..
faizanaltaf231
Artificial intelligence Presented by JM.
Artificial intelligence Presented by JM.Artificial intelligence Presented by JM.
Artificial intelligence Presented by JM.
jmansha170
la storia dell'Inghilterra, letteratura inglese
la storia dell'Inghilterra, letteratura inglesela storia dell'Inghilterra, letteratura inglese
la storia dell'Inghilterra, letteratura inglese
LetiziaLucente
Strengthened Senior High School - Landas Tool Kit.pptx
Strengthened Senior High School - Landas Tool Kit.pptxStrengthened Senior High School - Landas Tool Kit.pptx
Strengthened Senior High School - Landas Tool Kit.pptx
SteffMusniQuiballo
EUPHORIA GENERAL QUIZ FINALS | QUIZ CLUB OF PSGCAS | 21 MARCH 2025
EUPHORIA GENERAL QUIZ FINALS | QUIZ CLUB OF PSGCAS | 21 MARCH 2025EUPHORIA GENERAL QUIZ FINALS | QUIZ CLUB OF PSGCAS | 21 MARCH 2025
EUPHORIA GENERAL QUIZ FINALS | QUIZ CLUB OF PSGCAS | 21 MARCH 2025
Quiz Club of PSG College of Arts & Science
Adam Grant: Transforming Work Culture Through Organizational Psychology
Adam Grant: Transforming Work Culture Through Organizational PsychologyAdam Grant: Transforming Work Culture Through Organizational Psychology
Adam Grant: Transforming Work Culture Through Organizational Psychology
Prachi Shah
Analysis of Quantitative Data Parametric and non-parametric tests.pptx
Analysis of Quantitative Data Parametric and non-parametric tests.pptxAnalysis of Quantitative Data Parametric and non-parametric tests.pptx
Analysis of Quantitative Data Parametric and non-parametric tests.pptx
Shrutidhara2
Fatman Book HD Pdf by aayush songare.pdf
Fatman Book  HD Pdf by aayush songare.pdfFatman Book  HD Pdf by aayush songare.pdf
Fatman Book HD Pdf by aayush songare.pdf
Aayush Songare
Search Engine Optimization (SEO) for Website Success
Search Engine Optimization (SEO) for Website SuccessSearch Engine Optimization (SEO) for Website Success
Search Engine Optimization (SEO) for Website Success
Muneeb Rana
State institute of educational technology
State institute of educational technologyState institute of educational technology
State institute of educational technology
vp5806484
Pests of Rice: Damage, Identification, Life history, and Management.pptx
Pests of Rice: Damage, Identification, Life history, and Management.pptxPests of Rice: Damage, Identification, Life history, and Management.pptx
Pests of Rice: Damage, Identification, Life history, and Management.pptx
Arshad Shaikh
How to Create a Stage or a Pipeline in Odoo 18 CRM
How to Create a Stage or a Pipeline in Odoo 18 CRMHow to Create a Stage or a Pipeline in Odoo 18 CRM
How to Create a Stage or a Pipeline in Odoo 18 CRM
Celine George
LDMMIA Reiki Yoga S8 Free Workshop Grad Level
LDMMIA Reiki Yoga S8 Free Workshop Grad LevelLDMMIA Reiki Yoga S8 Free Workshop Grad Level
LDMMIA Reiki Yoga S8 Free Workshop Grad Level
LDM & Mia eStudios
Parenting Teens: Supporting Trust, resilience and independence
Parenting Teens: Supporting Trust, resilience and independenceParenting Teens: Supporting Trust, resilience and independence
Parenting Teens: Supporting Trust, resilience and independence
Pooky Knightsmith
Forestry Model Exit Exam_2025_Wollega University, Gimbi Campus.pdf
Forestry Model Exit Exam_2025_Wollega University, Gimbi Campus.pdfForestry Model Exit Exam_2025_Wollega University, Gimbi Campus.pdf
Forestry Model Exit Exam_2025_Wollega University, Gimbi Campus.pdf
ChalaKelbessa
Diptera: The Two-Winged Wonders, The Fly Squad: Order Diptera.pptx
Diptera: The Two-Winged Wonders, The Fly Squad: Order Diptera.pptxDiptera: The Two-Winged Wonders, The Fly Squad: Order Diptera.pptx
Diptera: The Two-Winged Wonders, The Fly Squad: Order Diptera.pptx
Arshad Shaikh
Smart Borrowing: Everything You Need to Know About Short Term Loans in India
Smart Borrowing: Everything You Need to Know About Short Term Loans in IndiaSmart Borrowing: Everything You Need to Know About Short Term Loans in India
Smart Borrowing: Everything You Need to Know About Short Term Loans in India
fincrifcontent
How to Manage Allocations in Odoo 18 Time Off
How to Manage Allocations in Odoo 18 Time OffHow to Manage Allocations in Odoo 18 Time Off
How to Manage Allocations in Odoo 18 Time Off
Celine George
How to Manage Maintenance Request in Odoo 18
How to Manage Maintenance Request in Odoo 18How to Manage Maintenance Request in Odoo 18
How to Manage Maintenance Request in Odoo 18
Celine George
Unit 3 Poster Sketches with annotations.pptx
Unit 3 Poster Sketches with annotations.pptxUnit 3 Poster Sketches with annotations.pptx
Unit 3 Poster Sketches with annotations.pptx
bobby205207
Cloud Computing ..PPT ( Faizan ALTAF )..
Cloud Computing ..PPT ( Faizan ALTAF )..Cloud Computing ..PPT ( Faizan ALTAF )..
Cloud Computing ..PPT ( Faizan ALTAF )..
faizanaltaf231
Artificial intelligence Presented by JM.
Artificial intelligence Presented by JM.Artificial intelligence Presented by JM.
Artificial intelligence Presented by JM.
jmansha170
la storia dell'Inghilterra, letteratura inglese
la storia dell'Inghilterra, letteratura inglesela storia dell'Inghilterra, letteratura inglese
la storia dell'Inghilterra, letteratura inglese
LetiziaLucente
Strengthened Senior High School - Landas Tool Kit.pptx
Strengthened Senior High School - Landas Tool Kit.pptxStrengthened Senior High School - Landas Tool Kit.pptx
Strengthened Senior High School - Landas Tool Kit.pptx
SteffMusniQuiballo
Adam Grant: Transforming Work Culture Through Organizational Psychology
Adam Grant: Transforming Work Culture Through Organizational PsychologyAdam Grant: Transforming Work Culture Through Organizational Psychology
Adam Grant: Transforming Work Culture Through Organizational Psychology
Prachi Shah
Analysis of Quantitative Data Parametric and non-parametric tests.pptx
Analysis of Quantitative Data Parametric and non-parametric tests.pptxAnalysis of Quantitative Data Parametric and non-parametric tests.pptx
Analysis of Quantitative Data Parametric and non-parametric tests.pptx
Shrutidhara2
Fatman Book HD Pdf by aayush songare.pdf
Fatman Book  HD Pdf by aayush songare.pdfFatman Book  HD Pdf by aayush songare.pdf
Fatman Book HD Pdf by aayush songare.pdf
Aayush Songare
Search Engine Optimization (SEO) for Website Success
Search Engine Optimization (SEO) for Website SuccessSearch Engine Optimization (SEO) for Website Success
Search Engine Optimization (SEO) for Website Success
Muneeb Rana
State institute of educational technology
State institute of educational technologyState institute of educational technology
State institute of educational technology
vp5806484
Pests of Rice: Damage, Identification, Life history, and Management.pptx
Pests of Rice: Damage, Identification, Life history, and Management.pptxPests of Rice: Damage, Identification, Life history, and Management.pptx
Pests of Rice: Damage, Identification, Life history, and Management.pptx
Arshad Shaikh
How to Create a Stage or a Pipeline in Odoo 18 CRM
How to Create a Stage or a Pipeline in Odoo 18 CRMHow to Create a Stage or a Pipeline in Odoo 18 CRM
How to Create a Stage or a Pipeline in Odoo 18 CRM
Celine George
LDMMIA Reiki Yoga S8 Free Workshop Grad Level
LDMMIA Reiki Yoga S8 Free Workshop Grad LevelLDMMIA Reiki Yoga S8 Free Workshop Grad Level
LDMMIA Reiki Yoga S8 Free Workshop Grad Level
LDM & Mia eStudios
Parenting Teens: Supporting Trust, resilience and independence
Parenting Teens: Supporting Trust, resilience and independenceParenting Teens: Supporting Trust, resilience and independence
Parenting Teens: Supporting Trust, resilience and independence
Pooky Knightsmith
Forestry Model Exit Exam_2025_Wollega University, Gimbi Campus.pdf
Forestry Model Exit Exam_2025_Wollega University, Gimbi Campus.pdfForestry Model Exit Exam_2025_Wollega University, Gimbi Campus.pdf
Forestry Model Exit Exam_2025_Wollega University, Gimbi Campus.pdf
ChalaKelbessa
Diptera: The Two-Winged Wonders, The Fly Squad: Order Diptera.pptx
Diptera: The Two-Winged Wonders, The Fly Squad: Order Diptera.pptxDiptera: The Two-Winged Wonders, The Fly Squad: Order Diptera.pptx
Diptera: The Two-Winged Wonders, The Fly Squad: Order Diptera.pptx
Arshad Shaikh
Ad

Depreciation of delta airlines case b

  • 1. Made BY::- MAYANK AGARWAL MANISH MUTYALA THARUNI AMBATI RUCHI AGARWAL RENU BISHT ARJUN P.A.
  • 2. Introduction of Delta airlines Annual revenue $12 billion In 1993 third largest airline U.S. Operated flights in 33 foreign countries. Average age of delta aircraft was 8.8 years
  • 3. Singapore airlines Largest private sector in Singapore economy 1993 at route network covered 70 cities in 40 countries. In 1993, its operating revenue $3.1. They would have made it seventh largest airlines in U.S. Average of age of Singapore aircraft was 5.1 year.
  • 4. Depreciation Depreciation is an accounting convention that allow a company to write-off the value of an asset over time, but is considered a non- cash transaction. Depreciation=(assets value- residual value)/asset life.
  • 5. Why the companies depreciate aircraft using different depreciable lives and salvage value? Due to companies are different and they have different authority. Due to lesser usage and higher maintenance. Due to technical. Due to need of the time.
  • 6. Lease A lease is a contract outlining the terms under which one party agrees to rent property owned by another party. It guarantees the lessee, the tenant, use of an asset and guarantees the lessor, the property owner or landlord, regular payments from the lessee for a specified number of months or years. Both the lessee and the lessor face consequences if they fail to uphold the terms of the contract.
  • 7. Operating lease An operating lease is a contract that allows for the use of an asset, but does not convey rights of ownership of the asset. An operating lease represents an off-balance sheet financing of assets, where a leased asset and associated liabilities of future rent payments are not included on the balance sheet of a company.
  • 8. Capital Lease A capital lease is a contract entitling a renter to a temporary use of an asset, and such a lease has economic characteristics of asset ownership for accounting purposes. The capital lease requires a renter to add assets and liabilities associated with the lease if the rental contract meets specific requirements.
  • 13. What is the possible reason that the Delta airlines operates almost half of its aircraft on operating leases, where as Singapore airlines operates no aircraft on operating leases? In the year of inflation the delta airlines focused on cost cutting by decreasing its staff and reducing flights where as Singapore airline did not do the same.
  • 14. Comparable study between the 2 airlines on assets, long term debt and depreciation expenses in the year 1993. Delta Airline Singapore Airline Total assets (in $ millions) 11871 9417 Long term debt (in $ millions) 3717 0 Depreciation expenses (in $ millions) 679 708