If you were a manager of United Airlines, and the airlines is in need of an airplane, would you choose to purchase a plane made by Boeing, lease it as financial leases, or lease it as an operating lease, or lease it in a short term (less than 1 year) lease? Why?

If you were a manager of United Airlines, and the airlines is in need of an airplane, would you choose to purchase a plane made by Boeing, lease it as financial leases, or lease it as an operating lease, or lease it in a short term (less than 1 year) lease? Why?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter19: Lease Financing

Section: Chapter Questions

Problem 8MC

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Hi I have a general question if an airline is looking at leasing(wet lease) an aircraft to fly a new route would sort of calculations should I be doing to figure out of this is a good decision? assuming the average price per ticket is $1,800 and there is a potential of 150,00 passengers per annum. the aircraft has 174 seats. there is more information in the question but I just want to understand the calca I should be thinking of doing to decide on the profitability of this decision.
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Company A leases computer servers to Company B for five years. At the end of the five years, Company B will assume ownership of the servers. Company B will then send the servers to one of their international locations. Which finance lease classification test does the scenario represent? O Alternative use O Transfer of ownership O Lease term O Purchase option