I was just about to hit the "Declare Bankruptcy" button and I just couldn't do it....I know that it's probably a losing cause, but it seems like I still have a lot of time left to try and make a change....I just don't know if it would be worth messing with.
Could some of you more experienced guys look at my airline and tell me if I should pull the plug?
Here's some of the highlights-
Headquarters is at Tokyo Haneda, with a 2nd base at Sapporo. Haneda business looks good on paper, but it's about 30% of what it once was. I've seen a drastic reduction in ticket sales in the past 3-ish game months. I believe this is due to several factors, I opened (and abandoned) a long-haul base at Narita, leased $28M/month in new planes (2-A380s, 2-777-200ERs, and 6 737-700ER) to fly from Narita, all on 5 year contracts that I can't terminate yet. I have the 777s in storage but the others are now flying domestic routes.
Before the Narita expansion (8 weeks ago in game time), I was seeing $50M+ in sales every month, with about $20M in expenses.....Now I'm bringing in only $35M a week with $35M in expenses. I do own 2 planes, a 737-900 that's worth around $64M and a 767-200 that's valued at $56M. I've terminated the leases of every plane I could that's not turning a profit.....but those 10 new planes mentioned above that are on long-term leases are stuck in my hangar. I currently have $203M in cash, and not a whole lot of credit....I could probably get a loan of $100M if I really needed to....if I used my planes as collateral.
Is it possible to suffer such a decline and still turn it around and get back up to those $20M/week profit levels? Would I be better off to just start over?