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Online Airline Management Simulation
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Author Topic: [-] lease payment from day 1  (Read 688 times)

Offline travelair

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[-] lease payment from day 1
« on: February 23, 2014, 03:09:50 PM »
Sorry for the title, but I dont know you to best describe it... Not sure if its a bug, Ill put in here.

Can you please have a look at my financial page, I dont know if it is a new rule, I just dont understand what I read: started 84 days ago, leasing the first ATR`s on apr. 13th, last one on may 18th. Payed the 4 months leasing fee in advance as usual...
Now the income statement from June on says 936k for aircraft leases and July will end up the same, eventhough the 4 months are not up yet. The total amount of leasing will be $1 mil once all a/c are in the fleet 4 month. But even if I take out an aircraft, the amount I payed since the beginning doesnt match. It all makes no sence really or I am to stupid to understand it  :-\

This is finacially killing my little airline as one can see and I need to do something about it quickly. I usually succeed even in difficult environments...

USAmerican in DCA
« Last Edit: February 23, 2014, 03:10:41 PM by sami »

Offline Sami

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    • AirwaySim - Are you the next Richard Branson?
Re: lease payment from day 1
« Reply #1 on: February 23, 2014, 03:10:35 PM »
See manual / new accounting

Offline travelair

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Re: [-] lease payment from day 1
« Reply #2 on: February 23, 2014, 03:18:54 PM »
Aircraft lease fees (These fees are paid when an airline cancels an aircraft lease prior to its expiration. This line also includes the non-refundable portion of new aircraft lease's prepayment (5 month's leases prepaid, together with a sum equalling 1 month's lease as a non-refundable delivery fee).
This has $0 in it since day 1. Where are the planes I leased?

Aircraft leases: (For those aircraft that you do not own, you have to pay a leasing fee to the company that owns the aircraft. This amount is deducted on a daily basis.
Yes but only after 4 month? When I leased the planes I had to pay for them. And have been paying monthly eversince day 1.

Offline travelair

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Re: [-] lease payment from day 1
« Reply #3 on: February 23, 2014, 03:59:00 PM »
When you lease a plane:
A pre-payment of 4 month's lease sum is required on order confirmation. Your lease payments start after this period.

Again, why is there a lease payment from day 1, where are the 4 month already payed at leasing?

Also the leased planes numbers dont show up anywhere under Aircraft lease fees....


« Last Edit: February 23, 2014, 04:03:36 PM by travelair »

Online dmoose42

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Re: [-] lease payment from day 1
« Reply #4 on: February 23, 2014, 04:28:19 PM »
When you prepay your lease, the amount expended is accounted for on your balance sheet as a prepaid asset and the cash is deducted immediately.  For the first four months, you still have a lease expense, the cost is just drawn from the prepaid asset on your balance sheet.  The expense does not get paid with additional cash until after the prepaid asset is expended after 4 months.


BD

  • Former member
Re: [-] lease payment from day 1
« Reply #5 on: February 23, 2014, 05:16:55 PM »
AND, the Cash Flow statement has a line "Adjustments of items where a payment is not included" where this prepayment is added back to the Net Operating Profit/Loss from your Income Statement (the net line before Other Revenue/Expenses on your I/S, top line of your CF Statement).

You might like to check out the CF/S as it will better help to understand where cash is being made and what might be bleeding cash.  It shares all the details of the I/S but in a different order for this purpose.  I used to take the old I/S and re-swizzle it to come up with something similar to this CF/S.

Offline travelair

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Re: [-] lease payment from day 1
« Reply #6 on: February 23, 2014, 06:22:53 PM »
Thanks for giving me a lesson in accounting!

Well, obviousy I am too stupid - even after reading the manual, which was a task itself, I didnt understand it. 400 ppl probably didnt go, ah of course, no problem.
I am a designer, I usually have someone "do" the accounting.
I will withhold my opinion if this change was truely neccessary on this scale, Im a supporter of keep it simple where possible.  Fix tax evasion a different way? But what do I know...

I was originally drawn into this game by the visual possibilities and their use in-game. For instance, when airlines ordered planes, their logo would appear in the news. This little feature was a great way for players to show their branding ( there are some really great logo designers out there) or updated logos, it helped associate names with logos.  Then this was replaced by a link, great. Perhaps there was a discussion as to why, I certainly cant find any.

Same for the airline map, used to have the logos of all carriers that serve the airport - replaced by a link. Its just a minor change, but takes away more visual content of the game, which is unfortunate. Please dont forget about the "visual" players  ;)
« Last Edit: February 23, 2014, 06:29:14 PM by travelair »

exchlbg

  • Former member
Re: [-] lease payment from day 1
« Reply #7 on: February 23, 2014, 10:43:46 PM »
After all this is a business simulation and an near- business accounting procedure is an important part of it. "Visual" players .....don´t you think Flight Simulator would be a better choice? This game is strictly about numbers , with a nice addition of potential livery design,which doesn´t play any role for processing the game.
Change to new accounting system was announced month ago, there would have been the time to discuss the meaning or importance of some new rules.

Offline travelair

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Re: [-] lease payment from day 1
« Reply #8 on: February 23, 2014, 11:07:58 PM »
Oh exchlbg, I nearly forgot about you sorry  :P

dont you think a product should try to satisy as many customers as possible? You bring a the argument yourself, its all dry numbers... Sure have priorities, but beyond them - specially this program used to display more "visual" interaction between players, whats bad about that. ( Something tells me you might find something?  :laugh: its a joke so dont get your rifles ready) They were taken away, I like many enjoyed the features, am just wondering why. That cant be a priority of sorts?

Alas, thats just the direction the game is taking, benefit: you learn basic accounting, might need it somewhere  ;)

PS: I hardly find time today to fly, but of course FlightSim has been on my drive since the 90`s

« Last Edit: February 23, 2014, 11:15:35 PM by travelair »

 

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