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Author Topic: -50+ Million in the hole, with 40+ aircraft already?  (Read 4022 times)

Offline vectorforfood

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  • Posts: 198
-50+ Million in the hole, with 40+ aircraft already?
« on: February 18, 2011, 10:32:18 PM »
Can someone explain how someone -57Million in the hole, could have almost 20 aircraft on order, some rather expensive ones already?

That just doesn't add up.


Ilyushin

  • Former member
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #1 on: February 18, 2011, 10:35:22 PM »
He took out huge loans which decreases his company value.

Offline Sigma

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  • Posts: 1920
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #2 on: February 18, 2011, 11:28:47 PM »
Adds up very easily -- he got so many, and such expensive, planes on order due to taking out a loan.  That loan decreased is company value.

He might have a loan for $100M which means he actually has almost $50M in the bank.

He might have very little cash and a loan for $50M

Or maybe he's got no loans and really is in the hole -$57M.  

Impossible to say with just that one point, but the most likely scenario given his large queue is a large loan to pay for them all.

minerva

  • Former member
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #3 on: February 19, 2011, 01:06:59 AM »
For those of us who've been around for a year or more will recognize that this is absolutely standard for the player in question.  His consistent strategy has been to buy as many cheap, old planes as he can early on, drive up his pax numbers and therefore airline value, parlez that into large loans at every opportunity, and then use that borrowed cash to buy replacement aircraft.  It's proved to be a very effective strategy for him too, resulting in him being amongst the top three airlines/players in a number of game worlds. There are inherent risks in the strategy, of course, but if you have (a lot!) time to spend monitoring the game, understand the game mechanics very well, and have a cast-iron lining to your stomach it can work very effectively. 

Offline Frogiton

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Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #4 on: February 19, 2011, 01:10:35 AM »
of course, but if you have (a lot!) time to spend monitoring the game. 

By a lot of time he means either spending their whole time at home living off welfare or have written a book and is living off the proceeds.
No replacement for displacement

minerva

  • Former member
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #5 on: February 19, 2011, 01:59:36 AM »
Having published (academic) books, I can report that unless you've appeared on Oprah, the proceeds of a single book are insufficient to spend more than a few minutes a day on AWS...

DanDantes

  • Former member
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #6 on: February 19, 2011, 09:55:20 AM »
For those of us who've been around for a year or more will recognize that this is absolutely standard for the player in question.  His consistent strategy has been to buy as many cheap, old planes as he can early on, drive up his pax numbers and therefore airline value, parlez that into large loans at every opportunity, and then use that borrowed cash to buy replacement aircraft.  It's proved to be a very effective strategy for him too, resulting in him being amongst the top three airlines/players in a number of game worlds. There are inherent risks in the strategy, of course, but if you have (a lot!) time to spend monitoring the game, understand the game mechanics very well, and have a cast-iron lining to your stomach it can work very effectively. 

I'm guessing that the player in question is me :-)

Having played now for a few years one has picked up a few things which has helped. But you are correct, the strategy is very high risk. One misstake and it will b a spectacular crash....

Dan
Dantes Air

DanDantes

  • Former member
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #7 on: February 19, 2011, 09:57:26 AM »
By a lot of time he means either spending their whole time at home living off welfare or have written a book and is living off the proceeds.

No such luck Im afraid :-) Although I did have a go at writing a book many moons ago. Just started my own company and I'm lucky that it allows me to have AS running in the background while I get on with my work..

Dan
Dantes Air

Offline GlobalCEO

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Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #8 on: February 19, 2011, 05:40:47 PM »
Kudos to you Dan.... ha ha ha. It's an interesting strategy! Congrats on the company :-)

minerva

  • Former member
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #9 on: February 19, 2011, 07:26:58 PM »
No such luck Im afraid :-) Although I did have a go at writing a book many moons ago. Just started my own company and I'm lucky that it allows me to have AS running in the background while I get on with my work..

Dan
Dantes Air

Dan, I have nothing but admiration for you making it work.  Had I more time for the sim and was less risk averse I'd be doing the same.

Offline swiftus27

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  • Posts: 4395
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #10 on: February 19, 2011, 09:46:49 PM »
be careful with massive debts right now, I am sure Sami has something up his sleeve that ill take you right out if you aren't streamlined and have some access to capital.

minerva

  • Former member
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #11 on: February 19, 2011, 10:02:49 PM »
Agreed.  There's nothing particularly challenging about this 'challenge' right now, but a major fuel spike would change everything, so I for one, intend to remain risk averse.

DanDantes

  • Former member
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #12 on: February 20, 2011, 10:13:22 AM »
I hear you, but by challange he could mean that there are so few airports and all airlines are very concentrated on one continent. Either way I have started to get ready for a price hike in fuel.

I'm actually trying out a few things in this gameworld that I never got the opp to do in the big scenarios. So either I will be up there or like I said previously there will b a spectacular crash  ;D

But at the end of the day like the Brittish special forces motto go "Who dares Wins"

Dan

Offline sergio

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  • Posts: 131
Re: -50+ Million in the hole, with 40+ aircraft already?
« Reply #13 on: March 22, 2011, 08:37:11 PM »
For those of us who've been around for a year or more will recognize that this is absolutely standard for the player in question.  His consistent strategy has been to buy as many cheap, old planes as he can early on, drive up his pax numbers and therefore airline value, parlez that into large loans at every opportunity, and then use that borrowed cash to buy replacement aircraft.  It's proved to be a very effective strategy for him too, resulting in him being amongst the top three airlines/players in a number of game worlds. There are inherent risks in the strategy, of course, but if you have (a lot!) time to spend monitoring the game, understand the game mechanics very well, and have a cast-iron lining to your stomach it can work very effectively. 

If leasing old and cheap planes allowes to grow fast: may it is better just to continue leasing old scrap, without wasting cash for new planes? (also keep an eye on the d check)

 

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