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Author Topic: My First bankruptcy - Irelandia is No More.. in MT2 Anyway :)  (Read 2389 times)

Offline MidlandDeltic

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My First bankruptcy - Irelandia is No More.. in MT2 Anyway :)
« on: October 15, 2010, 01:43:08 PM »
Eventually gave up the struggle, and closed Irelandia down.  Now operating under the Midland Air brand out of Birmingham.

A few thoughts.  I got a bankruptcy warning, but by that stage there was virtually nothing I could do.  Owned aircraft were being used to secure loans, with which I had purchased more aircraft in an effort to reduce operation costs as fuel prices rose.  Lease handbacks were no possible as I couldn't meet the lease closure costs.  Marketing campaigns closed, which further hit loadings, and maintenance checks started to be missed leading to fines, loan payments missed etc.....

Part of the problem was late starting, and as a result having to use a less than optimal airport (Cork, Ireland).  With limited demand even on "good" routes, I had little option but to open a second base.  Venice was chosen as a large airline had bankrupted there, and there were plenty of slots and an unmet demand.  All appeared to be going well, but I then got the long haul bug, and opened routes using 757s on marginal routes (Toronto and Chicago) just as fuel prices rocketed.  Eventually forced to close te base, but due to the problems of lease handbacks, together with a couple of unplanned D-checks and lack of available routes with demand from the HQ base the road to ruin was embarked upon.

I think that airlines with a warning in place ought to have options to try and recover the situation - even as little as waiving lease termination costs.  After all, in the real world an owner would probably prefer the aircraft to be returned in reasonable conditon, rather than in poor condition with out of date checks etc.  Alternatively, quicker foreclosing on loans to release airlines in trouble from the payments (albeit at the expense of hammering credit rating), may give players who get into difficulty a little more chance to recover.  After all, fire-fighting like that is in some ways more fun than everything going well....  :)



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