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: How possible is this airlines own a 44mil brand new 737-400 already??  (Read 1496 times)

CX717

  • Former member
http://www.airwaysim.com/game/Info/Airline/383/#AirlineInfo
A brand new 734 order cost 7.5mil(20% prepaid),and 30millions on delivery.
How possible can he generate 30millions with just 6 627 180 USD revenue in last quarter?
any clue?

mavi

  • Former member
You're assuming he has a positive cash position.  I would estimate his cash position to be close to -$30 million.

Offline ezzeqiel

  • Members
  • Posts: 375
Exactly...


Airline value    1 533 329 USD


He's WAY into negative cash...

teebob21

  • Former member
The best part is that it's not even being flown. It's for sale on the used market for $60M.

Offline Sanabas

  • Members
  • Posts: 2161
It's very doable, but he's taking a huge risk that somebody else has $60 million to actually buy it.

If he ordered that plane on day 1, only putting down 20%, it would have cost about $7.5 million, leaving him 2.5 million to lease his 3 ATRs.

No way he earned enough profit to actually pay for the plane, but when a new plane is delivered and you don't have the cash for it, you still pay for it, and simply go into negative cash. you can't lease planes, do c-checks, etc at that point. B-checks might stop, too, not sure. His punctuality is very low, so he might have planes in poor condition, soon to be grounded. Marketing also stops, and combined with the poor punctuality, your CI will head down at high speed. But you don't get charged interest on the cash balance, your loans are frozen, rather than continuing to get bigger with interest, so as long as you've got enough profit to get back to 0 cash in a month or so, you'll survive.

He has a CV of 1.7 million. Roughly 5 million in loans and a 44 million asset would give a CV of 39 million. That means he has a negative cash balance of roughly 37 million. If someone buys his plane, he has 23 million in cash, and can begin to expand. If nobody buys his plane before c-checks are due, or his ATR leases need renewal, he'll lose those planes, and be in trouble. He can't afford to have the plane leased out, either, it won't provide that 30+ million cash quickly enough.

It's a novel strategy, for sure. And even if it sells now, and he instantly finds 8 a320s on the UM to spend his 23 million on, that just leaves him at 0 cash, -5 million CV, with 3 ATRs and 8 320s leased. Whereas someone else in his airport is over 20 planes already. Plus he'll be far behind in RI & CI, and have less slots available. And since the plane has been sitting there for over a month, and the biggest airlines ingame only have a 30 million CV, it's a strategy he'll probably be regretting.

« Last Edit: July 26, 2012, 08:44:18 PM by Sanabas »

Offline EsquireFlyer

  • Members
  • Posts: 1327
He has a CI of -27 due to lack of marketing, so he is most likely dead. The new 734 will go to a plane broker and be leased out more cheaply to a lucky airline somewhere (after the broker beats up the plane and puts cycles on it for a couple months-years).

CX717

  • Former member
It's very doable, but he's taking a huge risk that somebody else has $60 million to actually buy it.

If he ordered that plane on day 1, only putting down 20%, it would have cost about $7.5 million, leaving him 2.5 million to lease his 3 ATRs.

No way he earned enough profit to actually pay for the plane, but when a new plane is delivered and you don't have the cash for it, you still pay for it, and simply go into negative cash. you can't lease planes, do c-checks, etc at that point. B-checks might stop, too, not sure. His punctuality is very low, so he might have planes in poor condition, soon to be grounded. Marketing also stops, and combined with the poor punctuality, your CI will head down at high speed. But you don't get charged interest on the cash balance, your loans are frozen, rather than continuing to get bigger with interest, so as long as you've got enough profit to get back to 0 cash in a month or so, you'll survive.

He has a CV of 1.7 million. Roughly 5 million in loans and a 44 million asset would give a CV of 39 million. That means he has a negative cash balance of roughly 37 million. If someone buys his plane, he has 23 million in cash, and can begin to expand. If nobody buys his plane before c-checks are due, or his ATR leases need renewal, he'll lose those planes, and be in trouble. He can't afford to have the plane leased out, either, it won't provide that 30+ million cash quickly enough.

It's a novel strategy, for sure. And even if it sells now, and he instantly finds 8 a320s on the UM to spend his 23 million on, that just leaves him at 0 cash, -5 million CV, with 3 ATRs and 8 320s leased. Whereas someone else in his airport is over 20 planes already. Plus he'll be far behind in RI & CI, and have less slots available. And since the plane has been sitting there for over a month, and the biggest airlines ingame only have a 30 million CV, it's a strategy he'll probably be regretting.


I thought we can't have that much negative cash,but obviously he did,thanks!

Offline Kadachiman

  • Members
  • Posts: 914
You can't build up (or is it build down??) to that much negative cash as the bank will step in before you get there....but you can do it in one hit by only paying a 20% on the plane and hope you win lotto before the other 80% is due....very risky strategy and one that does not appear to be working.
Who has a cool $60mill to spare to buy it at this stage of the game anyway?

brique

  • Former member
You can't build up (or is it build down??) to that much negative cash as the bank will step in before you get there....but you can do it in one hit by only paying a 20% on the plane and hope you win lotto before the other 80% is due....very risky strategy and one that does not appear to be working.
Who has a cool $60mill to spare to buy it at this stage of the game anyway?

A broker might buy it, esp if there is high demand for that model, not sure if they will pay any kind of premium tho...

 

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.