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Online Airline Management Simulation
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Author Topic: 2 Questions  (Read 421 times)

Offline AIRmoe

  • Members
  • Posts: 45
2 Questions
« on: April 16, 2013, 01:17:21 AM »
Could someone please tell me:

1. What are the benefits of a direct purchase compared to a lease?

2. What are the benefits of paying off all the loans compared to just going with the flow?

Now my airline is doing pretty well, so I'm not skint trying to save money, heck I got money that I don't even know what to do with. My goal right now is to have my airline gain value. So could someone enlighten me? Please and thank you  :)

Offline LemonButt

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  • Posts: 1895
Re: 2 Questions
« Reply #1 on: April 16, 2013, 02:57:50 AM »
1. You can borrow money via secured loan by using the plane as an asset, allowing you to take out MUCH bigger loans.  You also pay much less on insurance and will see higher profits since you aren't paying weekly leasing fees.

2. The benefit of paying off loans is having a credit line you can use if sh*t hits the fan and you need money.  In Beginner's World you won't have to worry about it, but in regular game worlds you'll have fuel spikes that cause many airlines to BK.  Thus, if you have a $100mm plane you can borrow against, this helps out greatly in managing your finances.

Also in terms of gaining airline value, when you pay $300k towards a lease it is gone forever.  If you pay $300k towards a loan you secured with an aircraft you own, you're company value will go up $300k (well not go up $300k--it just won't go down $300k).

Offline AIRmoe

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  • Posts: 45
Re: 2 Questions
« Reply #2 on: April 16, 2013, 07:06:42 PM »
Thank you very much for your thorough answers.

 

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