Dart Share Discussion Threads

[woozle1] 26/10/2018 08:06

This guy sounds deranged ! Filter recommended

[shaker44] 26/10/2018 04:59

filtered. uneducated gutter language. useless posts

[tongosti] 25/10/2018 18:00

Have filtered the shoe shiner but good seeing he hasn't lost his sensitivities. Atta boy

[woozle1] 25/10/2018 17:42

Is that the squealing of Tongo and xc1 I can hear as they rush to cover their shorts?! Another great bear call from these two geniuses.
w1

[tongosti] 25/10/2018 17:37

It's rather called a bounce after deeply oversold conditions in in the broader markets SP

[snorkelparker] 25/10/2018 16:49

Nice strong finish to the day with good volume too..someone is listerning to you CF

[snorkelparker] 25/10/2018 16:13

CF,
Thanks for the info on the plane purchases.

So approx 60 mil minus the depreciation will be added to Loans and Lease obligations Y/E 2020.

nice movement today, be good to see a bit more volume and not be sold down at the end of the day..

Thought it might be a further shake out today after the Spanish article on flights.

SNK

[tongosti] 25/10/2018 10:40

Oh my word ...I wonder why phenomenal companies like amazon and apple dropped by about 70% during the last bear market.You learn so much about someone's knowledge from one single comment...

[castleford tiger] 25/10/2018 09:45

I would of thought it relevant for any company.

My prediction is that this will hit 10.00 again on results day with or without a bull market

tiger

[tongosti] 24/10/2018 20:56

Extremely high probability (92%) the bull market came to an end in the US early this month. Very relevant for anyone involved be an Amazon or Dart holder. Time to either cash in one's chips and stay away or even better go short the market and wait for the likes of DTG to emerge far cheaper way down the line...

[castleford tiger] 24/10/2018 18:24

Gentlemen.

In terms of your questions on financing of the new aircraft fleet I will reference the published 2018 Annual Report, which as a shareholder, you will have received a copy of (it’s also on the Dart Group website).( For those who are not)

On Page 15 within the Business & Financial Review section we stated:
New loans totalling £458.2m (2017: £515.6m) were drawn down, as the Group secured both commercial debt and on balance
sheet finance lease funding for the purchase of the new Boeing aircraft deliveries, offset by £128.8m (2017: £91.2m) of aircraft loan
repayments.

In summary the new aircraft that had been acquired at the reporting date of 31 March 2018 are all on Balance Sheet:
• The aircraft assets sit within Property, Plant and Equipment
• The funding liability sits within Borrowings, whether financed through commercial debt or finance leases as detailed in Note 19 on page 72

As I think you are aware, we also have aircraft operating leases (at varying stages in their lifecycles) for a number of our mid-life aircraft and these are disclosed within Note 23 - Commitments on page 79
These operating leases are currently off Balance Sheet but this accounting treatment will change with the inception of IFRS16 – Leases in the year ending 31 March 2020. This is all detailed in Note 4 on page 64.


Hope the above clarifies the situation.

The number of new planes arrived was also correct.

It was mentioned at the AGM that we might be looking at another big order within a few years.

Tiger

[woozle1] 24/10/2018 13:46

so actual px of planes is 50% of list and assuming a mid 1.50£/$ fx rate that roughly equates to the capex from the last two years and forecast capex this one.

[snorkelparker] 24/10/2018 13:24

If the results are going to exceed market expectations with bookings up for summer 2019.. what with a tight free float of shares held by the general public, and lots of shorts could be an interesting day.. ..I say IF..

[xc1] 24/10/2018 11:37

Lower lows as stated.Hedge funds increasing shorts. Strong sell.

[woozle1] 24/10/2018 10:50

You can roughly infer the price by looking at the capex and dividing by no of planes since the announcement, Not perfect but equates to normal discounts.
w1

[wagnerlove] 24/10/2018 10:11

@Tiger - do you have any sense of how much they paid for 34 737-800NG, and how much has already been paid? As far as I can tell 31 of 34 have been delivered, so I presume those have been paid for in full. Just wondering if we will see big drop in spending on planes this year or not. They haven't announced any further buys as of yet, so maybe they will in November.

[snorkelparker] 24/10/2018 10:09

Yep that makes sense, I think the main point was off-balance sheet risks that are not identifiable. So captured in the 2017-2018 numbers is only a portion of the final debt / commitment associated with the 34 planes i assume ? Once 2018-2019 are available we should then have a figure for total debt in the absence of any more purchases being made prior to the closing of the current financial period.

[wagnerlove] 24/10/2018 09:58

Hi Snorkel - We don’t know the actual total price they paid for the 34 planes. We only know the list price, and that they secured a “significant discount” on that. The planes that were bought using finance leases are on balance sheet as assets, the same as all other planes, because Dart has economic ownership of them as “lease term is for a major part of the economic life of the asset”. The lease is on the liability side as borrowings. Simplest way to think about finance leases is to see them as the same as if Dart had borrowed money from a bank and bought planes. Assets and liabilities are on balance sheet, not off-balance sheet like operating leases.

[castleford tiger] 24/10/2018 09:55

Snorkel they are Purchased and paid for via cash and loans.
I have asked Gary for further information.

tiger

[snorkelparker] 24/10/2018 09:28

ThanksWagner for the reply, so does this mean that the 469.3 is the total purchase cost of the planes (the ones that have been delivered and in service)or the the cost of the obligation to lease them ?
Also, how do the leased planes sit on the asset side of the BS ?
appreciate your explanation, i think what I'm trying to understand is. If anything may come out of the wood work latter on the way the deals are structured.
At the end of the lease period i'm assuming there are options to purchase ?
snk

[wagnerlove] 24/10/2018 09:15

@SnorkelParker. Regarding leases, included in the £806.6m total of borrowings in March 31st 2017 there were £459.3 of finance leases for planes. They are on balance sheet and treated as debt. Unlike a operating lease Dart is treated as the owner of the asset over its working life for accounting purposes, meaning the lease is the same as a loan/debt.

See page 62 of annual report: “The classification of leases as either operating or finance leases is determined by the extent to which the risks and rewards incidental to ownership of a leased asset lie with the Group or the lessor. Management consider several factors in their judgement of classification, such as whether the lease term is for a major part of the economic life of the asset and whether, at the inception of the lease, the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset. Where these criteria are met, the lease will be classified as a finance lease, with all other leases being classified as operating leases”.

[snorkelparker] 24/10/2018 06:13

CF,Was looking at the companies borrowings and lease commitments ..borrowings have stayed pretty flat whilst lease obligations have risen. The new aircraft must have been purchased on a lease buy back basis or something simular. Do you have a more indepth understanding of how these planes have been aquired or funded..?Snk