Lower depreciation costs can offset higher leasing costs: Citigroup Asia MD
Citigroup Asia MD Anup Mysoor, speaking at CAPA's Financing the Asian Aviation Revolution conference, stated (07-Sep-2012) he does not expect net aircraft ownership cost proportion to change in the medium term. As a percentage of airline revenue, 6-8% is typically spent on aircraft depreciation, 3% on leasing and 2% on interest. While leasing costs may increase, depreciation costs are expected to decrease. “The 12% ownership cost for airlines is not going to change radically,” Mr Mysoor said.