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?
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.
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.