Regional Airlines
Regional Airlines
Regional airlines were established in the 1980s for the purpose of providing air transportation to cities that were not capable of supporting major airline jet service. The existence of collective bargaining agreements at major airlines contributed to the growth of independent regional airlines. Regional airlines can be profitable and are beneficial to the major airline only as long as their costs are lower than the major airline's costs. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 840‐10 and 605‐25 provide guidance on how regional airlines should analyze revenue recognition for capacity purchase agreements. This chapter gives a brief overview of the analysis that the Financial Reporting Executive Committee (FinREC) believes should be performed for each capacity purchase agreement. It discusses accounting for a capacity purchase agreement containing a lease under FASB ASC 840‐10‐15. Under most capacity purchase agreements, the major airline reimburses the regional airline for planned major maintenance.
Dokumentinformationen
Regional Airlines
Audit and Accounting Guide ; 231-251
2016-10-28
21 pages
Aufsatz/Kapitel (Buch)
Elektronische Ressource
Englisch
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