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Perhaps most interestingly, Amazon appears to be in negotiations to purchase 20 brand new 767 freighters directly from Boeing.
by ejdyksen 11y ago
Perhaps most interestingly, Amazon appears to be in negotiations to purchase 20 brand new 767 freighters directly from Boeing.
- scurvy 11y agoThat is odd. Don't most airlines work through a 3rd party that actually purchases and owns the planes?
- outside1234 11y agoYes, but that's purely a capex to opex move on their financials, in the same way that the cloud enables enterprises to shift server capex costs to Microsoft or Amazon.
- riggins 11y agoDon't most airlines work through a 3rd party that actually purchases and owns the planes? this is driven by the fact that airlines don't consistently have taxable income. If you have net operating losses, which airlines often do, you can't fully take advantage of the tax shield provided by depreciation. Airplanes are big capital assets, hence they provide a large tax shield. That's why you often see financial entities (e.g. banks, insurance companies) who have regular taxable income have leasing arms.
- chatmasta 11y agoNotably, Amazon and Boeing are both based in Seattle. The executives probably golf together. It's also possible that the two companies might receive some sort of Washington State tax subsidy for the deal. Edit: I stand corrected... Although I still wouldn't be surprised if the execs golf together. :)
- lovemenot 11y agoDidn't Boeing relocate HQ to Chicago a few years ago?
- selectodude 11y agoLike 15 years ago.
- banku_brougham 11y agoIts not even the Chicago thing; Amazon execs don't golf.
- elcct 11y agoYes, they just order golf ball on Amazon and set it to be delivered to a hole.