Discuss the impact of United Airlines moving from long-term debt funded aircraft purchasing to lease financing. Consider factors such as the impact on the asset value of the airline, debt-asset ratios, debt-equity ratios, cost of capital, and potential effects on shareholder rights in a bankruptcy filing, and the long-term responsiveness to evolutions in consumer demand.© BrainMass Inc. brainmass.com March 4, 2021, 9:58 pm ad1c9bdddf
If United Airlines move how it finances the purchase of its aircraft from long term debt to lease, then its capital structure would also change. For example, lease payables would not be recorded and the leased aircraft recognized at the present value of periodic lease obligations. This also means that the ...
The expert examines long-term debt financing for United Airlines.