Best Way to Set Up

Good morning, (afternoon or evening depending on where you are :slight_smile: )

I set up a holding company then a subsidiary. The subsidiary current does all the flights etc…

I was thinking of splitting some of the traffic so that I set up a 2nd subsidiary and have it do the small regional/prop and the mainline carrier do the mid/long range traffic.

My questions are:
Can I purchase some small prop/regional planes - transfer them to the holding company - then lease them to the new regional/subsidiary ?

Can the new regional carrier interline with my mainline carrier?

I don’t want to break any rules.

Thanks for the help.

~Regan~

And for some of the experts out there…is what I am thinking of doing a ‘good’ plan or should i just keep everything in one ?

I thought that I would save on maintenance fees by lowering the number of plane types is my main reason for thinking about doing this.

Yes, you can use the “asset management” functions but considering the opportunity cost of buying vs leasing I don’t think it’s a good idea

Yes, you can

The rules don’t allow interlining between companies that belong to different holdings of the same player (the system stops you if you try :slight_smile: )

I don’t consider myself an expert but I don’t think It’s a good idea for two reasons

  1. Buying planes isn’t a good idea, you can grow faster using only leased planes

  2. You can have 3 maintenance categories in your fleet without paying additional costs (15% if I’m right). Choose your planes and 3 categories will be enough to start. You can set subsidiaries later if you need more maintenance categories.

2 Likes

With new planes and using Avia, your maintenance costs run low and you can easily run 4 or 5 maintenance categories at a cost difference that will possibly be less than your additional costs for interline of the second subsidiary (if you interline with multiple partners).

3 Likes

ya know i had not thought of playing around with the maintenance companies…i always pick the same one.
thank you for your suggestion

:slight_smile: