How much red ink?

[Kiwi Sim Pilot]

Hi

Currently in my first Beginner World.

I notice some of the other players are running at large losses or their company value is way in the red. How far in the red will the game let you go before you are automatically bankrupt. I guess I have to ask is there an automatic bankrupt feature?

Cheers

[Sigma]

A value in the red is not the same as cash in the red.  All that's telling you is that the airline has a lot of outstanding loans, it doesn't tell  you anything about their current cash on hand and their ability to operate.

But, to answer your question, if your cash does get into the red, you have 7 real-days to return to profitability.

[mideg]

But, to answer your question, if your cash does get into the red, you have 7 real-days to return to profitability.

Are you sure about that? If I remember correctly, a negative cash means nothing for going bankrupt, but a negative company value does if(!) you are not making profit.

[Sigma]

Are you sure about that? If I remember correctly, a negative cash means nothing for going bankrupt, but a negative company value does if(!) you are not making profit.

Yes.  Company Value has absolutely zero to do with going bankrupt.  Being in a bankruptcy condition in this game is determined by your current cash on hand and your current profitability; so if you've got negative cash and are losing money at the end of the week, you will get your 7-day warning to return your company to profitability (not necessarily positive cash).

[mideg]

That cannot be true.

I once got that warning when I was in negative cash with negative company value and I was loosing money.

I never got that warning when I was just in negative cash and loosing money (which happens too often).

[MCR247]

That cannot be true.

I once got that warning when I was in negative cash with negative company value and I was loosing money.

I never got that warning when I was just in negative cash and loosing money (which happens too often).

Well it is

you have to be in a certain amount of negative cash

[mideg]

Might be that I was not below that threshold but iirc sami told me somewhere here in the forum that its company value, not cash, that triggers bankruptcy. I am sure he did point out that taking out a new loan doesn't help because even though it raises cash, it does not raise CV.

Edit: I found the thread and it wasn't sami talking about the CV, so maybe we can shed some light into this matter. here's the link: https://www.airwaysim.com/forum/index.php/topic,20250.msg96872.html#msg96872

Now, what triggers bankruptcy, CV or cash?

[ucfknightryan]

cash.

I have had hugely negative CV before while having positive cash flow and cash balance and not received a bankruptcy warning.  The only time I've received a bankruptcy warning, I had a very negative cash balance and negative cash flow.

[Tiberius]

I've experienced several bankruptcy warnings since joining this game ( ), and I can tell you from experience it is negative cash AND negative profit over an extended period.  I've actually run at practically even for weeks with small negative cash values (oh, say, around 1mil negative) and NOT had warnings.  It was when my cash went somewhere near -10mil AND I lost money that the warnings came.  The warnings only went away when my profits went positive and my cash went lower in the negatives (I can't remember if it actually went positive or just very near positive).

Hope that helps, and is accurate.  That's just what I've experienced.

[Sigma]

Might be that I was not below that threshold but iirc sami told me somewhere here in the forum that its company value, not cash, that triggers bankruptcy. I am sure he did point out that taking out a new loan doesn't help because even though it raises cash, it does not raise CV.

Edit: I found the thread and it wasn't sami talking about the CV, so maybe we can shed some light into this matter. here's the link: https://www.airwaysim.com/forum/index.php/topic,20250.msg96872.html#msg96872

Now, what triggers bankruptcy, CV or cash?

For the upteenth time man, it's cash.  Value has NOTHING to do with it.  Bankruptcy is triggered by your inability to pay your bills, you can have a hugely negative value and have well over $100M in cash to pay your bills, likewise you can have a hugely positive value and have no cash at all to pay your bills.

If it was company value then anyone who owned a couple planes could never go bankrupt, and let me tell you there are thousands of bankruptcies in the game of companies worth hundreds of millions, sometimes billions, of dollars in "value".

Again -- it's caused by negative cash on hand (it's gotta be a significant amount, a couple hundred grand negative won't do it usually) and negative profitability.

[mideg]

All right, I believe you. Now let's calm. 

[swiftus27]

This has been asked and answered nearly 100,000 times.

Assets - Liabilities = Value

That's it.

In this game, there are two types of assets.   1.  The value of your planes.  2.  The amount of cash you have on hand.

Liabilities, in this game, are limited solely to loans.

Therefore...

(Value of Planes + Cash on Hand) - Loans = Company Value