I have a question. I have recently purchased a cargo plane I was leasing. I wanted to move the plane to the holding company of my operating airline. However, I keep getting an error message. My holding company has no cash since I put it all into the subsidiary operating airline. So is there something I'm doing wrong? Also, is their a way to send cash to the holding company from the subsidiary? Thanks!
There is no possiblitiy to send cash to your holding company.
And you cannot lease a plane to another company unless you have about 20 Mio AS$ (or was it 15 Mio?) but you can transfer it without payment to your holding company and the sell it back to your subsidiary. This makes only sense if you have plans with your holding company (f.e. to create a new subsidiary).
Did you buy the plane on loan by the way? Then you cannot move it back to your holding.
Thanks for the info. No, I bought the plan outright. My operating airline has well over $20MM in equity. I wanted to buy planes I was leasing and then do a sale-leaseback with my holding company to generate cash flow to the holding company. That way I could have cash to start another enterprise under my holding company. It sucks that I can't do that.
Then transfer the planes to your holding company and sell it back. "Asset Management -> Aircraft Transfer -> Asset Transfer without compensation"
to transfer the plane to your holding company and "Asset Management -> Aircraft Transfer -> Sale" back to your company. Make this process happen until you have enough money in your holding company to start another sub under your holding company.
EDIT: the holding company needs either 15 or 20 Mio AS$ to lease back planes...
You can just transfer the aircraft right out to the holding and sell it back for book value. Leasing from your main airline enables you to take loans with it and trust me lonas are needed, especially when a large airline falls and you want it´s aircraft.