Comparative Analysis Case British Airways and Air France—KLM Instructions Go to the British Airways (GBR) and Air France—KLM (FRA) (Air France) company websites and use information found there to answer the following questions related to these airlines.

(a) What types of leases are used by Air France and on what assets are these leases primarily used?

(b) How long-term are some of Air France’s leases? What are some of the characteristics or provisions of Air France’s (as lessee) leases?

(c) What did Air France report in 2012 as its future minimum annual rental commitments under noncancelable leases for aircraft and flight equipment?

(d) At year-end 2012, what was the present value of the minimum rental payments under Air France’s finance leases in part (c)? How much imputed interest was deducted from the future minimum annual rental commitments to arrive at the present value?

(e) What were the amounts and details reported by Air France for rental expense in 2012 and 2011?

(f) How does British Airways’ use of leases compare with Air France’s?