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Author Topic: Airport Slots  (Read 381 times)

Offline Yarnam

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  • Posts: 99
Airport Slots
« on: August 31, 2014, 04:11:31 AM »
How come I have to pay when I release airport slots when cancelling a flight? Yes I did read the manual.

(This actually occurred in Game world 2 New)
« Last Edit: August 31, 2014, 04:29:12 AM by Yarnam »

Offline Yarnam

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  • Posts: 99
Re: Airport Slots
« Reply #1 on: August 31, 2014, 04:24:12 AM »
Closer examination reveals I lost "-168 230 USD" when I closed a CYWG - CYYZ & return and released the slots. This will essentially bankrupt my airline as I was cancelling the flight to try to save some money as it was losing money. Had I known I was gonna take a penalty I would not have cancelled it.
« Last Edit: August 31, 2014, 04:30:29 AM by Yarnam »

wahughesjr

  • Former member
Re: Airport Slots
« Reply #2 on: August 31, 2014, 05:16:14 AM »
You didn't lose the money. It's an accounting thing. The value of the slot (the amount you originally paid for it) is subtracted from "non-current assets" on your balance sheet.

http://www.airwaysim.com/game/Manual/Office/Accounting/

"They are recorded as an asset at the purchase cost and this value will not appreciate or depreciate over time (assuming the route is continuously flown). If you decide to give back the slot, the original cost of the slot will be expensed at that point, reducing income in that period." (emphasis added)

Offline Yarnam

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  • Posts: 99
Re: Airport Slots
« Reply #3 on: August 31, 2014, 12:29:54 PM »
That makes no sense at all.

Offline Sanabas

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Re: Airport Slots
« Reply #4 on: August 31, 2014, 02:25:22 PM »
A slot is an asset, and you'd already spent cash to get it.

You closed the route, and gave up the slot.

Therefore, your airline's assets decreased.

You DIDN'T lose any actual cash, you didn't pay any penalty. But because you did lose the asset, you're allowed to record that as a loss in order to pay less tax at the end of the year.

It's functionally no different to earning 55k for the year IRL, donating 5k to a recognised charity, and therefore only paying tax for 50k of income.

Offline Yarnam

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  • Posts: 99
Re: Airport Slots
« Reply #5 on: August 31, 2014, 02:35:10 PM »
OK I have it figured out now. You are correct, I did not lose any money. I apologize for my overreaction.

 

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