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Author Topic: Minimum price  (Read 335 times)

Offline Knud B

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Minimum price
« on: June 24, 2016, 08:17:34 AM »

Why is it not allowed to sell at the Book value?
It Book Value not the real value of the airplane?

Recommended price    6 410 000 USD
Book value    1 595 100 USD
Min / Max allowed price    3 173 000 USD / 10 937 000 USD
Min / Max price for alliance sales    4 615 000 USD / 7 692 000 USD

Knud Berggreen
Altona Luftverkehr AG

Offline Sami

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    • AirwaySim - Are you the next Richard Branson?
Re: Minimum price
« Reply #1 on: June 24, 2016, 09:24:11 AM »
The book value is not related to the actual market value of the plane in any way. It's merely the accounting value of the plane in your books.

The dialog has also three other fields (or four if you are in an alliance). These are:

   * Recommended price - The asking price recommendation given by your staff. This is based on your staff's assumption on the fair listing price for this particular aircraft model, considering the condition and age of the aircraft and also the popularity of this model. The accuracy of the estimate depends of the effectiveness (number/morale) of your staff (Economics and finance group).

   * Book value - This is the current value of the aircraft in your book keeping. This vs. asking price will affect how the sale is taxed. If you will sell the aircraft below your book value you will record a taxable loss, and vice versa (not applicable of course when you only lease the aircraft). The values are visible on the Income Statement after the sale has been completed. You may read more about the profit and taxation from the Accounting chapter of the manual.

   * Min / Max allowed price - The system has certain built-in limitations for the listing prices to avoid unfair trading. The limits are displayed here. If you are a member of an alliance there is also a separate set of limits for intra-alliance sales.

Depreciation: (All aircraft are assigned a book value at acquisition based on the purchase price. This value is then depreciated in a straight-line fashion over the remaining useful life of the aircraft to age 25. The cost of D-checks are added to the book value of the aircraft and depreciated in a similar manner. This is a non-cash expense that serves to reduce an airline’s taxable income. More expensive aircraft will tend to have higher depreciation charges as they will have higher book values. Depreciation is deducted once every game week.)

Offline gazzz0x2z

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Re: Minimum price
« Reply #2 on: June 24, 2016, 11:34:32 AM »
In game terms, the market value is what counts for those limits. Seems like your old steel still has some demand on the market.....

Offline JumboShrimp

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Re: Minimum price
« Reply #3 on: June 24, 2016, 11:10:17 PM »
What you can do is you can place the aircraft on the market at minimum price.  If no one buys it for certain period of time (3 months) the system updates the price ranges, and you can lower the asking price.

Offline Knud B

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Re: Minimum price
« Reply #4 on: June 26, 2016, 09:29:44 AM »
Thanks :-)
Knud Berggreen
Altona Luftverkehr AG


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