Loans

[MRFREAK]

Does it pay to take a loan to buy new aircrafts?

[Maarten Otto]

Depends...

[Jps]

... on the size of the plane and the size of the loan.
Imagine you wanted a bigger aircraft for LH, and need to loan $6 millions. If you pay back the loan in 3 years, the total cost of the loan would be around $8 millions. In other words, you'd have to make extra $2 millions/3 years to cover the loan expenses. This on top of normal operating costs.
Now, imagining your LH aircraft would generate some 300k profit/week after all expenses, it would take under 2 months to get that 2 million for the loan; after that it's all profit.

[d2031k]

Does it pay to take a loan to buy new aircrafts?

At the start of the world when competition is incredibly low, a loan is an absolute must.  If you can run even a half-decent airline then expedited growth can only be acheived with loans.  If you look at the airlines in massive negatives in MT#3, many of these will be the airlines sitting near the top in a few game years.

As Jps has pointed out in the last post, the loan can help generate a lot of profit in a very short time

Loans only really become more dangerous later on when competition is higher and circumstances can change quickly.