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Online Airline Management Simulation
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Author Topic: Airline Mergers - Potentially a Different Approach  (Read 614 times)

Offline Bruizer

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  • Posts: 35
Airline Mergers - Potentially a Different Approach
« on: February 21, 2012, 09:13:03 PM »
Hello!
I see there's been discussion before of Airline Mergers and the responses clearly state what the obstacles are to the suggestions provided so far.

I have an idea that might be easier to implement in the game, but I'm a newbie so may be way off base, however I'd like to share my thoughts.

If Airline A and Airline B want to merge, the two payers would negotiate terms.  Once agreed to (and perhaps upon Admin approval), Airline B's assets, employees & routes would become part of Airline A.  Airline B ceases to exist and a deadline is given to Airline A to divest itself of any bases it may then have that are above the limits.  Admins could also require that the new, larger, Airline A divest itself of certain routes to ensure a competitive marketplace (anti-trust/anti-monopoly oversight).

My thought is that Player B (not Airline B) would receive a sum of money from Airline A in exchange for his airline.  He could then use those funds, plus whatever he had in the bank prior to the merger, to start up a new airline and begin from scratch.  The merger would likely contain a requirement that Player B's new airline not be based too close to his old base and might also contain requirements that Player B's new airline not serve certain cities until a certain date.  You wouldn't want to pay a handsome sum to acquire another airline only to have its former owner immediately become cash rich and start competing with you right after the merger.

They key part that would likely be difficult to implement is that we'd need to introduce the concept of a Player's bank account, in addition to the Airline's bank account as funds would flow from Airline A's bank account to Player B's bank account, which Player B would use to start a new Airline B.

Thanks!

Offline alexgv1

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Re: Airline Mergers - Potentially a Different Approach
« Reply #1 on: February 21, 2012, 09:16:10 PM »
They key part that would likely be difficult to implement is that we'd need to introduce the concept of a Player's bank account, in addition to the Airline's bank account as funds would flow from Airline A's bank account to Player B's bank account, which Player B would use to start a new Airline B.

Such as the holding companies which had been discussed when talking about changing the finances/economic model. Yes that could work once the changes are made and there are subsidiaries, etc.
CEO of South Where Airlines (SWA|WH)

Offline swiftus27

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Re: Airline Mergers - Potentially a Different Approach
« Reply #2 on: February 22, 2012, 02:42:16 AM »
Such as the holding companies which had been discussed when talking about changing the finances/economic model. Yes that could work once the changes are made and there are subsidiaries, etc.

who'd want to own a holding company when the operating company gets to have all of the fun?

Offline alexgv1

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Re: Airline Mergers - Potentially a Different Approach
« Reply #3 on: February 22, 2012, 12:18:33 PM »
It has been discussed with some really good ideas from the players. the advantage of holding company means that you can run many airlines as one player/CEO which opens up the possibility of takeovers/mergers/subsidiaries... (although we all know they not always smooth/easy in real life)

I don't think I need to explain economics/finances/business to you swiftus haha  :)
CEO of South Where Airlines (SWA|WH)

ICEcoldair881

  • Former member
Re: Airline Mergers - Potentially a Different Approach
« Reply #4 on: February 24, 2012, 02:16:25 AM »
I've been urging for holding companies to be implemented as part of this proposed feature for the longest time now, and it's good that others agree with me (although I admit I probably wasn't the first one to propose it) that holding companies would work. I also completely agree with Jeepboy on how things should be implemented into aws, and...get this....there will be a reason for paying yourself! Yes, that's right - I've said it. :o In all seriousness though, I think this would be a GREAT way to implement this new feature and still keep with how AirwaySim currently works - great job Jeepboy! All we have to do is wait for Uncle Sam(i) to approve of it. Start crossing those fingers!

Cheers,
ICEcold

ICEcoldair881

  • Former member
Re: Airline Mergers - Potentially a Different Approach
« Reply #5 on: February 24, 2012, 03:05:07 AM »
Bah - I forgot one thing. Maybe [to appease Uncle Sam(i)'s iron (ban)hammer, but still make this feature workable - and viable :P] we could limit the number of post-merger hubs to, say, 5 total?

Cheers,
ICEcold
« Last Edit: February 24, 2012, 03:50:06 PM by ICEcold »

Offline Bruizer

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Re: Airline Mergers - Potentially a Different Approach
« Reply #6 on: February 27, 2012, 09:28:06 PM »
Yes, that sounds really good to me.  Thanks for the comments!  While I wasn't thinking of holding companies, I can see how that idea can dovetail into this really well.

My motivation for the idea is I foolishly selected my base city in Beginners World, however I have managed to make a profitable small airline out of it.  Now, I'd love to enter a merger talk with another airline  and offer to eliminate myself as his/her competition in exchange for some money for myself which I would use to start a new airline in a different part of the world.  Now that I've been playing in this world for some time I have a better understanding of the "lay of the land" and can make a more informed decision on where to base my new airline.  I don't want to shut down my current airline prematurely so I can start my new airline, but I'm anxious to do so because the new base will be a far better environment for me to start/grow.

 

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