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Author Topic: Aurora Airlines and Jetonski Fly fined  (Read 885 times)

Offline Sami

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Aurora Airlines and Jetonski Fly fined
« on: January 17, 2022, 12:50:51 PM »
The airlines mentioned in the topic title have been fined by administration regarding aircraft transfers between the two airlines which exceed the fair play standards in the game rules.

The transactions for 4x A320 aircraft are in violation of the game rules regarding fair play and cash transfers.

As previously noted, it is okay to do a sale and leaseback deal. But we can see here that just 2 years after the sale - leaseback, the original owner has bought the planes back in a very small price compared to the original sale-leaseback deal just years earlier. The A320s where bought by Jetonski in 2008 at about $58 mil a piece, and just two years later bought back by Aurora with the price of $20.5 million (in the mean time they were leased by Aurora). The proper value of the planes is approximately this $20 million, so the 2008 deal was effectively a money transfer from Jetonski to Aurora. Judging the history of these planes and how this scheme looks, I have ruled that this is a violation of the game rules. The intention to operate the planes is here, no problem there, so it is just a question of the pricing and it clearly looks just like a way of transferring money to the other airline who is in a small financial trouble.

- Aurora Airlines will be issued a penalty of ~$125 million (comparable to the monetary gains).
- Jetonski Fly will be issued a penalty of -30 pts company image (since money was not gained, but a rule violation happened, and the CI penalty is usually the other option).

As a reminder, rules state the intention for aircraft trading clearly, but naturally all individual examples cannot be listed: "Users are forbidden to effectively transfer money between two airlines by for example repeatedly selling and buying aircraft between each others. Normal one-time sales of aircraft, including sale & leaseback deals, are naturally allowed but transferring aircraft with the only intention of at the same time generating profits/money to one airline is considered unacceptable. The purchasing airline must also have a legitimate use for the aircraft to be purchased - putting the aircraft into storage, scrapping it or letting the aircraft sit idle after it has been purchased is not a fair basis for aircraft sales (especially if combined with an exceptionally low or high purchase price)."
« Last Edit: January 17, 2022, 12:53:47 PM by Sami »


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