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: Loans  (Read 1733 times)

chrisadams

  • Former member
Loans
« on: April 19, 2011, 05:40:24 PM »
If when i start, i repay all my loans, will i be able to successfully apply for a bigger load?

thanks

Nlgravity

  • Former member
Re: Loans
« Reply #1 on: April 19, 2011, 06:07:24 PM »
NO, becasue your company image will still be low and your company value would be zero

Offline BobTheCactus

  • Members
  • Posts: 1244
    • AeroBlogger.com
Re: Loans
« Reply #2 on: April 19, 2011, 09:51:35 PM »
NEVER repay your loans until you are rolling in cash.

In terms of ROI, you are best off taking a 10y loan and using the full 10 years to pay for it.
Editor of AeroBlogger
If you're interested in blogging on aviation 3x/month or more:
http://AeroBlogger.com/Write

chrisadams

  • Former member
Re: Loans
« Reply #3 on: April 20, 2011, 08:35:42 AM »
BUT however many times i try this game i never make cash....

BHigg

  • Former member
Re: Loans
« Reply #4 on: April 20, 2011, 11:48:04 AM »
Do you all max-out your initial loan with planes on start up? or is it better just to spend half of it?

chrisadams

  • Former member
Re: Loans
« Reply #5 on: April 20, 2011, 06:06:57 PM »
I've tried maxing out, and just using half and then wait till profit arrives, but neither have worked for me :(

Online type45

  • Members
  • Posts: 843
Re: Loans
« Reply #6 on: April 20, 2011, 09:08:40 PM »
well, that's will be the problem on how you operate your airline......

Just have a quick look, you are using A310-200......I've to say it is not good for start up, because of high cost, especially during high fuel price like now. It is a good decision to fly empty routes at early stage, but your turn around time is too short. In AWS it takes longer time to turn around a plane (I think it is because of system setting and programming). Never let your plane fly again unless the time is long enough to make it has less than 8% chances of getting delay. Also company image and route image are big issues, if able try to put some money on promoting your airline, it'll help to improve your load factor.

chrisadams

  • Former member
Re: Loans
« Reply #7 on: April 30, 2011, 09:48:15 AM »
Ahh thanks for that :) what plane should i start with then (now to wait until i get more money so i can get more credits :( )

Offline Minto Typhoon

  • Members
  • Posts: 1017
Re: Loans
« Reply #8 on: May 01, 2011, 04:21:22 PM »
The Dash-8 Q400 or the A320 series.   Just choose one, and grow to a dozen aircraft before adding another type.

The A310 is a tough aircraft to make money with in the current scenario as it has the same number of seats as an A321

Quote
In terms of ROI, you are best off taking a 10y loan and using the full 10 years to pay for it.

Agree with taking a 10 year loan, but not waiting ten years to repay it.  Why pay interest if you don't have to.

Jps

  • Former member
Re: Loans
« Reply #9 on: May 01, 2011, 05:30:34 PM »
Agree with taking a 10 year loan, but not waiting ten years to repay it.  Why pay interest if you don't have to.

+1
But only if you don't need to get more planes with that cash. Also, if the current interest rate is lower than when you took the loan, you might wish to pay the loan now and take a new loan with lower interest. Just note that if you can't take a new loan before you pay the previous loan back, it may take some time for the bank to offer you another loan.

Also company image and route image are big issues, if able try to put some money on promoting your airline, it'll help to improve your load factor.

I wouldn't spend the little money I have in the start for route marketing... It will rise to 100 in few months as long as you fly the route frequently (at least 6 times a week), and most likely you won't get the money back you spend on marketing during the time difference that it takes for the RI to rise to 100.
General marketing affects LFs much more, and is very cheap when you are a small company.

Offline BobTheCactus

  • Members
  • Posts: 1244
    • AeroBlogger.com
Re: Loans
« Reply #10 on: May 01, 2011, 09:15:08 PM »

But only if you don't need to get more planes with that cash. Also, if the current interest rate is lower than when you took the loan, you might wish to pay the loan now and take a new loan with lower interest. Just note that if you can't take a new loan before you pay the previous loan back, it may take some time for the bank to offer you another loan.


If you are rolling in cash, of course it's a good idea to pay off your debt, but if you can continue to expand, that's a better use of your money.

Also, keep in mind that the only point in refinancing is if your credit rating improves, not if the interest rate changes (it's the margin which would improve, not the rate itself.
Editor of AeroBlogger
If you're interested in blogging on aviation 3x/month or more:
http://AeroBlogger.com/Write

Offline Minto Typhoon

  • Members
  • Posts: 1017
Re: Loans
« Reply #11 on: May 01, 2011, 10:50:15 PM »
I'm a big believer in paying back debt as fast as possible - balancing growth with prudence. 

Pity I can't say the same for the Irish goverment! 

JDuff

  • Former member
Re: Loans
« Reply #12 on: May 02, 2011, 06:11:31 PM »
Also consider that making calculated paybacks can reduce the income tax you pay, all the while keeping the same company value.
You're also making savings on long term loan fees payment.

Offline Unbornio

  • Members
  • Posts: 662
Re: Loans
« Reply #13 on: May 03, 2011, 10:47:49 AM »
Keep the loans until a few of your game days' worth of cash can pay off the loan.

You can always loan more and more from the bank even when you already have several loans.

Just remember to maintain a good image and a good rating (never have balance statements with negative results) and you'll be able to loan much much more.

Loaning happens to also be the essential part of growth in AWS.  ;D
Beta Tester

 

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.