Depreciation at Delta Air Lines: the “Fresh Start”

Delta Air Lines

Land, Building and Equipment, are the most assets in the Airline. The Equipment about aviation, land asset and equipment, it’s all more than half of depreciation of those assets, and it’s a importance expenditure

Delta Air lines requires to adjust a structure under the Bankruptcy (Chapter11 of the U.S. Bankruptcy code) in September, 2005 and pop up the new Company in September 30, 2007. Delta Airlines have been adjusted the information follow THE FRESH STARTS to be a fair value and become a new Company. Delta Air line bring the policy of Estimating Planes Carcass Value but it’s too far from estimated.

Delta Air lines started in 2008 with the new destination that more than another air lines in the world, 321 Destinations in 58 Countries more than year 2006 and 2007. In 2007 there have the Airlines in America and in 2008 Delta integration with Northwest Airlines and become the biggest Airline in the world.

Delta Air line used the Principle of Accounting with the Value follow the Assets Accounting of new debt in April 30, 2007 for report the Finance statement of Successor for 3 months and ended in September 30, 2007 and in 8 months period ended in December 31, 2005 and 2006 and there have to apply to Committee every year.

Result of analysis

• The point of ‘’Decrease of depreciation $127,000,000’’ it’s from fair value of assets and the assets that decreased. Adjusting estimating of the lifetime’s Aviation applications, cause affected to decrease of depreciation. And that follow the Fair Value Theory that defined in SFAS 157 is the cost that would get from selling the assets or pay in transferring the Responsibility in Transection of Participant.

• The point ‘’Total property and Equipment net“Recorded $11,700,000’’ it’s depend on the factors included the Assets that Estimated the lifetime and Estimating and recovering. Followed SFAS 144 ‘’Accounting for the...