AirwaySim
Online Airline Management Simulation
Login
Username
Password
 
or login using:
 
My Account
Username:
E-mail:
Edit account
» Achievements
» Logout
Game Credits
Credit balance: 0 Cr
Buy credits
» Credit history
» Credits FAQ

Author Topic: Debt  (Read 983 times)

Sulton111

  • Former member
Debt
« on: April 18, 2011, 03:02:42 PM »
Hi All

quick question

can i ask why its allowed to run an airline nearly $8mil in debt and order more aircraft it seems very unfair for those people operating either in profit or with a bare minimum of debt.

Ilyushin

  • Former member
Re: Debt
« Reply #1 on: April 18, 2011, 03:06:46 PM »
If somebody orders many aircraft yet has a large debt (value), this means the airline took out big loans to finance the ordered aircraft.

Ilyushin

Sulton111

  • Former member
Re: Debt
« Reply #2 on: April 18, 2011, 03:09:27 PM »
great thanks for letting me know - this wasnt a dig at the said airline just an observation

Offline swiftus27

  • Members
  • Posts: 4395
Re: Debt
« Reply #3 on: April 18, 2011, 03:44:36 PM »
Value is calculated as total assets minus liabilities.   The problem is that many real life assets are not listed as assets in the game (prepaids for instance)

Offline LemonButt

  • Members
  • Posts: 1895
Re: Debt
« Reply #4 on: April 18, 2011, 03:46:27 PM »
...and even then the company value is only book value.  Profitable companies in the real world will have company values many times their book value, largely dependent on profit margins and revenue growth.

Offline swiftus27

  • Members
  • Posts: 4395
Re: Debt
« Reply #5 on: April 18, 2011, 04:51:55 PM »
... I agree 100%.

Offline EYguy

  • Members
  • Posts: 563
Re: Debt
« Reply #6 on: April 19, 2011, 11:07:18 AM »
Btw, for the sake of every business manager... Everytime you start up a new enterprise, usually the first 3 years are "in the red figures" due to the company taking its time to reach "idle revs". I think this is the same with airlines, especially in these days! ;)

Edo

 

WARNING! This website is not compatible with the old version of Internet Explorer you are using.

If you are using the latest version please turn OFF the compatibility mode.