Paying Off Loans/Start-up routes

[Pike]

Question for you guys...

How aggressive should I be in paying off the initial startup loan?  Talking specifically
about the NA Challenge scenario, but in general too.

I realize the benefit in not letting a loan go to term, but can't figure out if it's worth
plopping down $100-500k a week to pay it off quickly, or just focus on initial expansion
efforts.

My guess is that it's best to leave alone in the first year, though I've found myself taking
it down $50-100k here and there.  Any ideas?

Last question...

For my latest two airlines, I've gone with a high-frequency short route and do a long distance
overnight that departs the base airport @1700-1900hrs and gets back to the home base at @5:00 (I've
taken the advice on the forum and try to make sure the red eye leaves before 2300.)

Just wondering though...especially in a case like the NA Challenge....would I be better off just going strictly
SH routes, especially with competition being stiff?

Thanks for any thoughts guys!

[GlobalCEO]

Im in there as well and I usually pay back an extra 500k when I can as often as I can.

[Pike]

Im in there as well and I usually pay back an extra 500k when I can as often as I can.

Yep...I used to work as a loan officer, so I guess I feel a compulsion to get my airline debt free
as quickly as possible.  Just wondering how the best in the business go about this.  I got to thinking
about it more when I read Swiftus' diary about his small airline venture.  Seemed even he went about
paying the debt down pretty early. 

[JumboShrimp]

I don't know about NA Challenge, but the initial loan you start with usually has very good terms.  Something to consider.  When you pay it off, and borrow again, the loan terms will be worse.

[slither360]

I agree with JumboShrimp - 4% is really low. You're better off keeping the money and expanding compared to paying off your debt, and being forced to take a new loan in the future.

[lilius]

As long as you can use all cash to invest wisely there is no reason not to have loans.

[Maarten Otto]

My Tuesdays and Wednesdays are ALWAYS in the red during the start-up year.And I never pay a penny back to the bank. All money goes straight into investments.

[swiftus27]

If ROI is higher than the current loan terms, why even bother paying it back?

[Pike]

Interesting...never really thought about it in terms of ROI.