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Author Topic: 1.4million in debt , restart?  (Read 902 times)

Winstonread

  • Former member
1.4million in debt , restart?
« on: June 29, 2011, 11:09:25 PM »
im in 1.4mill debt but all my routes now are generating very good profit , like 10k a flight and 200k a week each plane and i have 5, should i start again or carry on ?

DenisG

  • Former member
Re: 1.4million in debt , restart?
« Reply #1 on: June 29, 2011, 11:28:01 PM »
Your a/c look pretty old, but fleet comm. is very good. Take a look at when your C-checks will be due during the coming 12 months, as they will cost a lot of money. Besides that, you are flying a number routes with strong competitors, and I believe your airport has many better 'free' routes to offer. I would recommend to fly those in order to improve your cash flow.
Cheers,
Denis

Offline LemonButt

  • Members
  • Posts: 1895
Re: 1.4million in debt , restart?
« Reply #2 on: June 30, 2011, 12:24:17 AM »
im in 1.4mill debt but all my routes now are generating very good profit , like 10k a flight and 200k a week each plane and i have 5, should i start again or carry on ?

You absolutely need to cancel the leases on your DC9's before those C-checks show up.  You should save your profits and switch your fleet over to a newer (thus cheaper to maintain) and more fuel efficient aircraft type (DC9's will bankrupt you in fuel alone in the long run).  Your longest route is only ~600 nm...I'd suggest F27, BAC 1-11, or 737 depending on slot availability.  If slots aren't a problem, go with the F27.

Offline PiaDijkstra

  • Members
  • Posts: 142
Re: 1.4million in debt , restart?
« Reply #3 on: June 30, 2011, 08:35:26 AM »
Nice advise, hoe can you cancel A/C when you are 1,4 in debt!

Check the cost of the C-checks and what your profit is, will you make profit of 1,4 mio anytime soon? If not start over!

Offline Wing Commander Chad Studdington

  • Members
  • Posts: 1047
Re: 1.4million in debt , restart?
« Reply #4 on: June 30, 2011, 09:00:03 AM »
Nice advise, hoe can you cancel A/C when you are 1,4 in debt!

Hate this, we can open routes and perform maintenance without money but we can't get rid of planes that are hemorrhaging money. I wish it would be changed. It might help save more airlines.

Offline PiaDijkstra

  • Members
  • Posts: 142
Re: 1.4million in debt , restart?
« Reply #5 on: June 30, 2011, 11:17:26 AM »
+999

You must be able to change your company in order to cut the losses you make! once you are in red you just have to ride it out

 

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