Holding to Subsidary

Hello all! Hope everyone is doing well!

I have been thinking of a strategy and I wasn’t sure if it would work, so I would like to propose it and discuss it with everyone.I was wondering if it would be 1)viable 2)profitable.

So here it goes:

Airline A is founded. Airline A starts operations and grows to a large amount of planes ~75 Dash8s Q400As, Q200As and Q100As. Airline A wants to launch med. haul and long haul routes but doesn't want to operate regional and short haul. Airline A proceeds to the purchasing of all of the regional prop planes. Airline A then founds airline B. Airline A then proceeds to the leasing of all of the 75 Dash8s to Airline B. Airline B takes over the operations of Airline A in regional and short haul. Airline A launches medium to long haul routes.

So..from what I have written, is this a strategy that can work? Can it be profitable? People will say yes, because Airline B makes money on the plane and Airline A makes more money with the leasing..but Airline A needs to purchase all of the planes. I thought of this recently, and was wanting to potentially try it. Because of my limited knoewledge on this simulator, I don't have all of the info and experience to know if it's a good strategy.


Why ... I mean isn't it easier to start a subsidiary which operates the medium haul route?

Yeah, it can be profitable, but you're talking about buying airplanes for a cost of over a billion dollars. Buying planes is very expensive... you'd probably be better off just leasing the planes from AS.