Originally Posted by
Lease
My calculation is significantly lower. Take AIR 2019 annual accounts figures.
Labour: 1351. As they slash 1/3 workforce, so Labour cost will be 1351 X 2/3=900
Fuel: 1271, As AIR reduce international capacity by 85%, and domestic by 30%, fuel is mainly used in long-haul thus I weight 80% for international and 20% for domestic, thus fuel will be dropped by 85% X 80%+30% X 20%=75%. Fuel will be 1271 X (1-75%)=317
Maintenance: 399, As not many fleets on fly so maintenance cost should be down significantly, say down 50% thus maintenance=200
Aircraft Operations: 678, again not many fleets on fly, the cost will be down 50% as well, it is 339
Passenger Services:319. Capacity has been largely reduced, not much money need to spend on Passenger Services. Assume reduce same rate as fuel, thus Passenger Services=319 X 25%=80.
Sales and Marketing: 350, no longer need it, slash to 0.
Exchange Gain or loss: -53, ignore as fairly small amount. 0
Other Expenses: 290. Don't know what they are but cut 50% should be OK. 145
Rent: 245. In current situation, Airline companies and Airport are working together to find solution to benefit both in the long-term, similar to commercial landlord and tenant. I think rents reduce by 50% will be appropriate. so it is 120.
Finance cost: 79, this will increase. I put double to 160.
So the new total costs p.a are: 900+317+200+339+80+145+120+160=2262 p.a, that is $188m per month.
Any comments, Beagle?