Loans on Gatow

Is there some new loan formula in place?

With this balance sheet

	Balance sheet

			Assets
		
			Liabilities
	
			Account
		
			Balance
		
			Account
		
			Balance
	
			530
		
			Buildings
		
			0 AS$
		
			3000
		
			Equity
		
			38,033,343 AS$
	
			700
		
			Flight equipment
		
			1,580,640 AS$
		
			3100
		
			Shareholders equity
		
			0 AS$
	
			1300
		
			Investment
		
			0 AS$
		
			4250
		
			Loan
		
			0 AS$
	
			2800
		
			Bank account
		
			792,255 AS$
		
			 
		
			 
		
			 
	
			2900
		
			Security deposit
		
			40,382,485 AS$
		
			 
		
			 
		
			 
	<p>I can't even get 100k loan??</p>

Nope, no changes here.

You don´t have enogh securities for a loan.

Flight equipment 1,580,640 AS$

That´s all you have

1,5M is not enough for 100k loan? Yet another way of supporting the cheaters getting all the old aircraft.

the 1,5M are seats or do you own an aircraft?

the 1,5M are seats or do you own an aircraft?

That should not matter. Asset is asset.

So what is the value that your assets should amount in order to get a credit? 

70 mil equity - still zero loans avaliable.

Account 3000 - Equity is NOT the account you have to look for.

That´s because the security deposits (Account 2900) are already used for your leased planes.

Look at Account 700 - flight equipment and 530 - buildings. How much do you have here?

Account 3000 - Equity is NOT the account you have to look for.

That´s because the security deposits (Account 2900) are already used for your leased planes.

Look at Account 700 - flight equipment and 530 - buildings. How much do you have here?

That is exactly my point. The formula is wrong. It supports one particular startegy (buying old planes) and puts those leasing planes at disadvantage.

Security deposit is an asset. It is still owned by the airline - you get it back when you return the plane. No reason to exclude it from loan formula.

That is exactly my point. The formula is wrong. It supports one particular startegy (buying old planes) and puts those leasing planes at disadvantage.

Security deposit is an asset. It is still owned by the airline - you get it back when you return the plane. No reason to exclude it from loan formula.

Your assumpton is wrong. The security deposit belongs to the Bank .... think of it that way ... you lease a plane for that you have to pay a deposit. that one is transfered from your account to the bank. So it is not in your possesion anymore. What would happen if you take a loan on the base of your security deposit and then give the planes back. Then you would have a loan based on a security that is not there anymore ......or ? 

Exactly. Or to put it even simpler: Leasing deposits already ARE a security. You can't use them as such a second time.

Your assumpton is wrong. The security deposit belongs to the Bank ....

Wrong - it still belongs to the airline  - that is why it is still on the balance sheet as asset.

Exactly. Or to put it even simpler: Leasing deposits already ARE a security. You can't use them as such a second time.

There are loans with security or without security (at higher interest rate) in AS. If I want loan without security why do I need a fixed asset security? Completely unrealistic.

"Loan with security" in AS means that the loan is bound to one particular asset and you never hold the cash in your hand (thereby making it impossible for you to spend it on something else than said asset).

That doesn't mean a bank would be too keen on giving you cash without any securities (unless we're talking about some kind of loan shark who'd simply kill your family if you fail to pay your rates).