So I had several airlines before the current fairly succesful one (in my rating, of course). Nearly all of them died because the end of the week i couldnt pay the leasing for an aircraft. The lessor took it back and dang…there goesy airline.
So how much money should i left after the leasings but at the same time use as much money as i can effectively?
You need enough money to pay
even if you don't make profit in the first week (most likely, you will make a loss as you have already had it a couple of times).
Personally even with a big airline… I look at the next 3 days worth of payments, which is available on your overview page. It has a total of payments which are due in those next days and I make sure my balance is never below that. I probably play a little safe but so far have never been caught out
In the first week you have to keep in mind that you have to pay the leasing by the end of that week. This happened to me also in the beginning - only once, and after that I always kept these additional expenses in mind. I believe that many new players are not really aware of this.
Yes, keep a sharp eye on the cash flow report -- it projects your unavoidable expenses.
It would be really cool if it could project your flight income / expenses ... but without that, look at the EBITDA on your income statement and do the math to get a sense of how much net cash you're taking in during the same period that your bills are coming due.
You also need to be aware of any aircraft you add shortly before your week-end as additional pilots will increase your salaries for the current week, not the next. I’ve unexpectedly received rescue loans before because I thought I had enough reserve to add an aircraft late in the week, only to learn later that it caused me to not be able to pay salaries.
Personally, I don’t think salaries should be adjusted in the current week. I think new hires should be added to the following week. That would keep the current week expense static and far more predictable. It would also be nice if you could pay salary or leasing expenses earlier than when they are due so that you know exactly what you have left over for growth.