martin
March 14, 2019, 7:38am
44
Again, I suggest you read what I wrote on this thread before:
martin:
Interest rate : One of the less logical parameters, the interest rate in AS is based on the prime interest rate which in turn is computed based on the global weekly success of all airlines. In my model I treat it as an annual interest rate, though. All in all, this seems to work rather well if one of the goals is to not throw everything we have overboard and introduce a completely new pricing scheme for aircraft financing. You can plug in values anywhere between 1 and 25% and IMO, the resulting values look pretty feasible.
Concerning the other items:
EastAsiaAir:
Offer different loan tenors, e.g. 1yr, 5yr, 10yr. And the longer tenor, the higher interest rate, the longer tenor should pay more interests, but longer tenor loans should have lower weekly payment.
Sounds like a nice addition for later in time.
EastAsiaAir:
Leasing should be better for short-term operation, while purchasing is better for long-term profitability.
Tweak other things to make sure not to go from one extreme to the other extreme. May need to set up additional rules such as upper limit of borrowing (as a function of total equity)
As we tweak this over time, those might be things to look into.
While I’m not sure exactly how to implement it, to expand the aircraft financing options in AS, would be beneficial and interesting for the game. Currently, the only real options in the current leasing (i.e. in reality an operating lease) og buying the aircraft with cash. To have the options which also included financial leasing and credit financing with more realistic financing cost than the current options would be great.