How do you plan for leasing installments?

English Boards Community Support
1

I was making a small profit finally, then today I got hit with $720,000 in leasing installments. The bank gave me a loan but one of my planes was taken back by the lessor. I didn't see this on my income statement until it happened, so I wasn't prepared. How do you prepare for big hits like that? 

Thanks!

2

If you click on your airline name at the top, it will take you to the enterprise home. On there you have "Upcoming Events" which is basically a list of bills that are going to be paid soon...

3

Thanks!

4

You can also get it from financial schedule.

5

I look at the financial schedule and also the "Bank Account". Compare your balance on the first and last pages of your bank account and this will show you how much you make in a 24hr period.

So if you know you have a $500K bill coming up in 24 hours time, but your bank account shows you make $1m per 24hr, you can afford to spend the difference -$500K - without big risk of running out of cash.

6

Or you always have about 10 million left so you know nothing bad will happend.

7

Or you always have about 10 million left so you know nothing bad will happend.

Probably fair enough, but better to have your money in the air making money if possible...

8

Or you always have about 10 million left so you know nothing bad will happend.

That's a bit overkilling it, no? Having enough to pay for the installments should be enough. 

9

That’s valid for a new airline. After your airline has been around for a year, has decent size of couple of hundred aircraft and is in at least medium sized market, you will have billions without knowing what to do with them.