Start-up Cash Reserves

I just started my airline and purchased 3 ATR-72-210’s to launch it. I have the cash to purchase a 4th, but doing so would leave me with only $400 k in cash reserves. Seeing as I don’t know what my cash flow will be yet, I don’t want to go that low in reserves. Am I right in holding out a few days before purchasing a 4th aircraft?

I really want to avoid leasing because I prefer owning aircraft and not having to worry about weekly lease payments and the fact I get no liquidity from a leased aircraft.

It’s a choice, of course, but it also means you will have a far smaller chance to get lots of passengers than someone else who leases 3 737s with his start-up money.

As for holding some in reserve, it’s always a good idea, since it allows you some space to try out some routes and possibly incur losses as you’re searching for the right routes to fly.

I launched another airline in one of the other worlds but bought the 4th plane in that one. I’d like to say that comparing them would be fun, but I’m focusing on a different region in each one so I can’t really call it a controlled experiment. I expect my company with 4 ATR’s to outperform my 1st company. Not just because of the extra aircraft, but also a better hub with proximity to many high passenger volume yet undeserved airports. Should be fun.