Mohan Venkatachalam_Airlines Switch to Buying Planes_Duke University's Fuqua School of Business
Jun 12, 2024

Professor Mohan Venkatachalam found that a new accounting rule made leasing less attractive for public airlines

Airlines have long been known to lease rather than buy a significant chunk of their planes. But a 2016 rule by the Financial Accounting Standards Board (FASB) made it advantageous for air carriers to switch from leasing to buying their vehicles, with consequences for their idle capacity, flying routes and, potentially, for the wear... read more