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Author Topic: When to expand and the first loan?  (Read 553 times)


  • Former member
When to expand and the first loan?
« on: April 06, 2013, 12:07:18 AM »
I have been playing this game for a little bit and after a few bankruptcies, I'm managing to get a profit now.

A few questions though -

I have a Fokker 28 3000 and a 4000, running mostly from KPIT-KMDW because I get high LF% and constant revenue from them. I also have around 7.5 million total $ sitting in my account, with the initial loan still hanging around.

First, I have been making around $100,000-200,000 a week in profit now (significantly lower on income tax collections), but it is slowly rising as my company image and route image go up. I have been making small increases in the ticket price such as 1% when the weekly stats say my LF% have increased, so I will slowly be making a bit more money each week. I want to know, when would it be safe to lease another plane (probably medium sized), and if so, what are some good recommendations on profitable aircraft?

Second, when should I worry about paying off the initial loan? I read in another post to hold onto it as long as possible because it has great terms and you will not see another loan with good terms like this. As I'm starting to pull into the clear with profits, what would be the right time to start paying that off to stop the interests and payments?

Thanks guys

Offline Name_Omitted

  • Members
  • Posts: 293
Re: When to expand and the first loan?
« Reply #1 on: April 06, 2013, 06:32:02 AM »
Don't repay the first loan.  You will never get money that cheep again.  Use your 7 mil to get a few more Fokkers.  You want at least 5 of each group.


Offline Andre

  • Members
  • Posts: 1090
Re: When to expand and the first loan?
« Reply #2 on: April 06, 2013, 06:33:15 AM »
The right time to pay the initial loan off, is when you're making so much money you won't even notice it on your weekly income sheet.

As regards to the plane, you should stick to using maximum three different fleets. The F28 series isn't going to be viable for much longer as the fuel prices are going to rise again. It's successor F100 is a great plane though, and much more economical. Other medium sized jets you should consider is the Embraer E170 series and the CRJ700/900/1000 (not the 100/200 or 705).

If you're making money now, you should consider adding a third airplane. You need to gain momentum. :)


  • Former member
Re: When to expand and the first loan?
« Reply #3 on: April 06, 2013, 04:25:44 PM »
Thanks guys, I'll look into those options and see what will be the next step for me


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