How to transfer money from holding company to subsidiary

How do I transfer funds from my holding company to my subsidiary company? Is it even possible?

Hi,

you cannot transfer money.

However, you can transfer a plane for free, and then sell it back for money. Mind you, this is only possible if the subsidiary is not on the stock market.

Jan

Mind you, this is only possible if the subsidiary is not on the stock market.
 
I never knew that.  Is that in the rules somewhere?
I never knew that.  Is that in the rules somewhere?

Hi,

long time no see  :-)

I don't know if it is explicitly specified in the Wiki/rules, but it makes sense... imagine that your subsidiary is on the stock market, and you "give away" owned planes from that subsidiary to your holding. The value of the shares is based on the equity of the airline. Giving away planes would result in a lower value of the shares. The share holders would not be happy that profits are being pumped away...

So if your subsidiary is on the stock market, you can only sell or lease planes (between holding and subsidiary) at the book value of the plane.

If you completely own the subsidiary, giving away a plane for free is like putting money from your left pocket into your right pocket  ;-)

Have a nice weekend,

Jan

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