Leasing costs

So, I have to pay my leasing payment at the end of each week. Why is the cost of leasing also deducted on a per-flight basis?

Hi,

it is not "also" deducted on a per flight basis. You will only pay once  :-)

The flight information page gives you all the costs, but...

- leasing cost is paid at the end of the leasing week. The given cost is the weekly leasing price divided by the numbers of hours your plane is scheduled to fly during that week, multiplied by the duration of this particular flight.

- salaries for pilots and cabin staff are also paid weekly. The given cost is how much this particular flight will cost you in salaries.

- maintenance costs for this flight will be paid the next time your plane gets maintenance (the next blue block on your flight schedule)

- other costs, such as on-board service and passenger handling are paid per flight.

All in all the information page gives you a clear indication whether or not a flight is profitable, and how profitable it is.

Jan

Alright, and the interest on loans is calculated per week? So if it's 1% it's 1% per week interest? Cause that's like... that's worse than most payday loans, and not at all how actual loans companies receive are like.

Alright, and the interest on loans is calculated per week? So if it's 1% it's 1% per week interest? Cause that's like... that's worse than most payday loans, and not at all how actual loans companies receive are like.

Yes.  The interest rates are obscene.  You'll find that the majority of players lease their planes due to the low leasing rate in comparison to the interest payments.

Hi Jordan,

Before you consider interest rates and buying aircraft please have a read of this (which I wrote out on another page)...

http://community.airlinesim.aero/topic/5084-transferring-funds-between-your-companie-interleasing-and-loans-questions/?p=38998

Hope it helps

Ian

Yes.  The interest rates are obscene.  You'll find that the majority of players lease their planes due to the low leasing rate in comparison to the interest payments.

That's absurd. What company would EVER take a loan on durable goods that has an APR of 68%? Greece gets interest rates that are at least 1/3 of the lowest possible interest to get on a loan if that's how it's calculated.

Someone hire AS an accountant. :P

It's a well known and age-old problem of AS that there isn't a common timescale for the game (is a week in-game a year in real-time? But why are aircraft depecated in real-time then?). It becomes especially obvious with interested rates but there are other areas affected as well. 

It's a historic problem and is tricky to fix without completely changing character and pace of the game.

It's a well known and age-old problem of AS that there isn't a common timescale for the game (is a week in-game a year in real-time? But why are aircraft depecated in real-time then?). It becomes especially obvious with interested rates but there are other areas affected as well. 

It's a historic problem and is tricky to fix without completely changing character and pace of the game.

Everything, just about, moves in real time on AS. Why should interest be different?

As to keep the game interesting certain elements of AS is based on the element of one week = 4 weeks. Why do you think you have "week-end closing" rather than monthly closing? Leasing payments are done weekly rather than monthly, but then your profit/loss per flight also has an element of x4 to cover these. You staff also get paid everyweek...

Everything, just about, moves in real time on AS. Why should interest be different?

As ianmanson and martin already wrote - not everything moves in real time. Otherwise you could found your airline hand have to wait for months to do another action in your airline again. ;)

As ianmanson and martin already wrote - not everything moves in real time. Otherwise you could found your airline hand have to wait for months to do another action in your airline again. ;)

So then loans exist to trap new players?

So then loans exist to trap new players?

Ever thought that loans are available for every player? Some players are very impatient and think by buying a plane they have a bank security and they get themself a loan to get more Aircrafts. In that case and it has been written here in the forum many many times the strategy is doomed to fail because the costs and repayments will kill you. If you look in the aircraft market you will find lots of planes that are cheap to lease. Just lease planes and build up your hub. Once you reach a stage where you can lease one airplane per week everything will get easier. I am leasing around 98% of my planes. The rest I bought in cash and not with a loan. So the option exists like in real life .... but do you have to take it just because it is there ?

So then loans exist to trap new players?

When I was a new player I had a look at the larger airlines to see what they were doing. I noticed not many owned their aircraft, therefore I started by leasing too. It was only later on I noticed why...

So then loans exist to trap new players?

No, but obviously for player not able to read :P

Take a look at the yellow hint on every aircraft market page:

Your current interest rate for aircraft purchases is {x}%. Note that weekly interest payments have to be added on top of the loan installments stated in the offers!

Ever thought that loans are available for every player? Some players are very impatient and think by buying a plane they have a bank security and they get themself a loan to get more Aircrafts. In that case and it has been written here in the forum many many times the strategy is doomed to fail because the costs and repayments will kill you. If you look in the aircraft market you will find lots of planes that are cheap to lease. Just lease planes and build up your hub. Once you reach a stage where you can lease one airplane per week everything will get easier. I am leasing around 98% of my planes. The rest I bought in cash and not with a loan. So the option exists like in real life .... but do you have to take it just because it is there ?

My question is why a mechanic was put in that literally does nothing but cause a player to fail. It's the same sort of question I'd ask if someone made a doomsday button. "Why would you make a button for that?"

If it's mathematically impossible for the loan to help a player, as it seems to be from the math I've gone over, then the only reason for the feature to be there is to trick or trap players who don't understand it, causing them to fail.

EDIT:

You'll all have to forgive me a bit for this kind of discussion. Professionally I'm a software engineer, so these sorts of things I think about whenever I'm using a product.

What's about an airline wanting to pay an aircraft within short time. You can make an extra-payment on a loan so purchasing a loan may be the way to pay it within 2 or 3 weeks.additional a loan purchased aircraft may help on your rating if needed.

I'm in the situation @sk describes. I bought an airplane on loan and i pay the loan back in 2 weeks exactly. Every day or other day a little bit until the loan is payed off.

That's because i'm impatient. I could wait 2 weeks and i would have the money for it but this way i get the aircraft earlier.

What i don't understand is and maybe @sk can enlighten me is why my interest rate grows like crazy.

Initially i had like 1% then it grown to 1.2 -> 1.5 -> 2.0 -> 2.5 now it's at 2.8% which is outrageous from my point of view. I have more assets, my rating is AAA and money is pouring in after the castration of the AGEX.

Hi,

your overall financial rating may well be AAA, but one or more of the sub-ratings may be lower... if your airline is worth 500 million, but you only have 1 million in your bank account, your cash reserve may be rated as BBB. Even though your airline is perfectly healthy. My Egyptian airline probably has one of the highest profit margins on Tempelhof (because it owns the majority of its planes) but the rating for "return on equity" is only CC. Owning all these planes means that my airline is worth over 6 billion dollar. So while making a weekly profit of 70 million on a turn-over of 157 million is excellent... a profit of only 70 million on an equity of 6 billion is very low  :-)

My CC rating for return on equity probably means that I wouldn't get the cheapest loan either. Even though my overall rating is AAA.

Jan

@sobelair

Well, actually i have AAA subratings for every category. I have enough cash so my cash reserve is also rated AAA. My loan interest is still 2.8%

@sobelair

Well, actually i have AAA subratings for every category. I have enough cash so my cash reserve is also rated AAA. My loan interest is still 2.8%

As far as I understand it, interest rates in AS are calculated based on overall demand for funds. So interest rate goes up when players take more loans.

While we were going into the AGEX crisis and most players were cutting back, loans could be had for as low as 0.2% (simply as there was no demand for funds) - I surely made good use of it ;)

Now that - sadly - AGEX has been tweaked and all of a sudden everyone's expanding like crazy again, interest rates rise in consequence.