Does your subsidiary need to own the aircraft 100% without any loans in order to sell the asset to your holding? I am told that is the only way to transfer cash between holding and subsidiary. My subsidiary is not listed on the stock exchange and bought a plane that it cannot afford. When I try to do the asset transfer, there are no planes that show up. I bought one on loan and I lease one. Obviously the leased one will not show up but the purchased one does not either. Thanks for the help!
You have to own the plane 100%. If any of it is owned by the bank or leasing company, you can't transfer it. Buying on loan is, generally, a Very Bad Idea. The interest payments can take an airline down pretty fast. Are you sure you own the plane free and clear of any loans?
caithes, he said : "I bought one on loan and I lease one." so it is pretty obvious the aircraft he wants to transfer is not free and clear of loans.
The result, inability to transfer, is self-explanatory under such circumstances.
True, but sometimes people make mistakes or infer something to be one way when it is another, especially when it is a newer player. That's why I try to be concise and specific in my answers. Sometimes it makes me ramble. ;)
Wouldn’t it make sense to allow the holding to buy the plane, thus paying off the loan?