Hey guys. Me again. Got a very interesting topic for consideration.
My previous airlines over the years have all been failures due to aggressive expansion vs fuel/competition. All but one. And then in that case, I had no time for AWS so that even crashed and burned.
This is the first airline with great potential that has already been able to aquire 12 owned ATRs with a combined value of $180,000,000. I have 8 A300s and 2 A310s on lease with leases expiring from 1993 all the way to 2001.
This is my dilemma. My gut instincts are telling me to take out this mega loan against all my owned ATRs, starting by purchasing the A300s with the nearest lease termination dates. Then take out additional loans againsts them to buy the other $80-120M A300/A310s.
I have already made a bold and risky (natural risk taker) decision by ordering 21 brand new Saabs. I guess I felt a bit invincible since at the time of placing orders for both regional a/c, I was earning $3.4M pw. I know what I want to do with them but in order to recieve them all and still have paper in the bank, I would need to increase my profit quite considerably or take the loan out for the Saabs. At this moment in time, I am at war with other airlines in the region for route domination. Whilst my ATRs are successfully bullying the other airlines (no offence to the CEOs, )the A300s I initially scheduled short 600-1000nm flights for are serverly underachieving.
So. Do I rearrange my A300 routes by removing them from all poor income routes (already done so, even with some European route pairs) even if it means 1 flight per day to routes as small as 1200-2440NM and wait for my bank account to increase (battles have taken it's toll. Not currently making $3M anymore. More like $1M-$2.7M on a good day) slowly whilst hoping my 70+CI improves LF across both fleets or...do I try to force a higher profit by taking out this mega loan to buy my existing fleet?
$800k repayment per week for $180,000,000 over 6 years.
Additional loans will ofcourse bring that weekly cost up.
My A300 leases vary from $170k to $190k each per week.
If I do take this loan out, could I leave the leased A300s and go for some B733/4s. These seem to be the perfect a/c for my 1000-2700NM routes.
Not in trouble. ..yet. Just want to prevent it this time.