i need help with loans

[THI]

hello,
i have an airline in JA2.
US International in Atlanta.

I have a/c with a value of more than 480,000,000 $
but i "only" can take 120,000,000 $ full secured credit.

how is the loan amount calculated and does anybody has experience ?
i want to buy leased out aircraft from my fleet.

thanks for help,

greetings,
thomas

[schro]

There's a total loan cap for each game world that is indexed to inflation.  I presume you're talking about the Jet Age rather than your 4 prop operation at ORD in ATB. In the last Jet Age, the loan cap seemed to max out at about 200M for secured loans. There have been feature requests asking for the ability to fully leverage an airline, but I don't know if it will be implemented...

[GDK]

It was a bug. Tell sami.
I had that issue and he fixed it for me.

[THI]

i made a thread but he deleted it/i dont find it anymore  .....

[Sami]

Not a bug, as it works like it was designed. Thus I also combined your another topic to an existing topic in the feature rq. board. Since I am not a financial expert, I'd need some actual solid advice of how it should be done.

( https://www.airwaysim.com/forum/index.php/topic,13649.0.html )

[THI]

normally the loan without any securities is: the amount of earnings (profits) in the last 8 months

the amount for loans with securities should be:
50-75% of the value of all aircraft you own (should depend on age of the a/c)

but it is normally very complicated because it depends on the period you take out the loan.
i can give you a formula how to calculate, but you do not have this factors and it is in german.

but 50-75% is very realistic.

[THI]

honestly.
it becomes more and more ridiculous.

in jetage my airline has a worth of nearly 1 billion and i am only able to take 15% loan.
thats honestly a bad joke.

sami.
please do something. you know that it is not, absolutely not realistic.

i want to modernize my whole fleet and i want to purchase new aircraft. every company is dealing
with loans to be liquid with cash.


can't other players please write some suggestions, too ?
he will not do anything if i am the only one who wants more realism here.

[Curse]

The loan amount is hardcoded. In ATB it's around $420-$500 Million, in Jet Age around $100-150 Million.

For example my airline in Jet Age can loan out with full securites ~132 Million, while weekly profit is around $30 Million (so I earn more money a quartal than AWS will give me money) with Value $6 Billion etc.


However, I like the hard coded limits and I think they are too high. Due to the high profit margins in AWS you can take out very very cheap loans.

[Sigma]

You can't get realistic with the loan amounts until you get realistic with the profit margins.  Otherwise an already easy game becomes exceeedingly easy with everyone borrowing billions of dollars and paying it back within a year.

And if you hate the loan amounts now, you'd really hate them when they were 1/20th what they are now because your margins are a teeny-tiny fraction of what they are today.

[THI]

i dont understand.

[Curse]

In AWS average airlines have 10-25% profit margin. In Real World airlines like Lufthansa, American Airlines, British Airways etc. have no or maximum 5% in a boom year.

[mattb]

In AWS average airlines have 10-25% profit margin. In Real World airlines like Lufthansa, American Airlines, British Airways etc. have no or maximum 5% in a boom year.

For example, EasyJet in the last financial year, had passenger revnue of £2.1 billion.  There net profit was £71.2 million. That's around 3% profit margin.

My airline so far this month is on a profit margin of around 6% (which is low for AWS).

[JumboShrimp]

You can't get realistic with the loan amounts until you get realistic with the profit margins.  Otherwise an already easy game becomes exceeedingly easy with everyone borrowing billions of dollars and paying it back within a year.

And if you hate the loan amounts now, you'd really hate them when they were 1/20th what they are now because your margins are a teeny-tiny fraction of what they are today.

Yeah, the profit margins may be unrealistically high, but if you want to slow down the explosive growth of some airlines early on, when an airline can acquire 100 airplanes in a year - with no capital - is to bring the leases under the same umbrella as the loans.

You may have an airline with net worth of zero, with $200 billion aircraft on leases - buy only ~ 0.5 billion available in loans.  Both are unrealistic.  ~ $0.5 billion cap on loans (in ATB, indexed for inflation) is unrealistically low for all but the smallest start-up airlines.  But that is nothing compared to hundreds of billions in leases.

Remember, to get even the pitiful $500mil in loan, you need to have $400mil in collateral.  To get $500mil in leases, all you need is $25 in cash on hand.  Which one is more unrealistic?