I know if you start a new subsidiary and don't IPO it, you can transfer owned aircraft back and forth. My question is, do the schedules transfer with the A/C or do you have to manually redo it? I'm thinking about starting a subsidiary to operate my regional jets, but I shudder at having to manually input each schedule. Lol
You can only transfer the bare aircraft (without seats). You will lose all schedules and cabin when doing so.
And furthermore, you can only transfer aircraft that you fully own. Leased aircraft or bought on credit are not transferable.
Thank you. I have 161 aircraft that I would eventually like to transfer to a *possible* new subsidiary. So basically, this would be a significant cost. My holding would have to lay off the pilots. The sub would have to hire pilots and then install the cabin configuration.
Yes
What would be the best way to do this while the aircraft are still actively operating? I'd have to delete their schedules 3 days in advance so they stop generating flights. But this would free up their slots. Is there a way to get around this?
Get the sub, lease the aircraft there and then open two browser windows (either two browsers, or one normal, one private).
In the sub create a schedule that is identical to the one from the holding (even if the flights are red due to missing slots). Once you have it, delete the entire schedule in the holding. Quickly edit and save back any red flights in the sub and voila, you have recreated the schedule.
Once transferred, cancel the lease etc. in the holding.
Thanks again for your help Matth. I appreciate it. One last question. What do you do with the airplane for the 3 days after deletion of the schedule while it’s still operating its scheduled/activated flights, and before resuming its “new” schedule? I don’t suppose the already activated flights transfer to the sub.
What I told you involves two separate aircraft.
Any schedule booked in will remain and be flown off, no matter what you do to the schedule (unless you cancel the flight manually).
If you delete a schedule and return the aircraft, you can cancel the lease immediately. The aircraft will be returned to the lessor at the end of the contract. If there are still scheduled flights left, they will get cancelled (without paying a penalty), so don't cancel them manually (cos then you pay the booked passengers a compensation fee).
Got it. Thank you!
Is there a way to do it without two aircraft? I don't have any spare aircraft sitting around to do this transfer. I'd have to do a straight transfer. By the way you know you can only transfer fully owned aircraft, not leased or credit bought aircraft
No theres not. It is not possible to do a straight transfer at all
Don't forget when you transfer an a/c you will be losing an asset which will affect your ability to loan money. Conversely the other airline may now be in a position to be offered the ability to loan. If your transferee airline wants to borrow money do it before the transfer.
Don't forget when you transfer an a/c you will be losing an asset which will affect your ability to loan money. Conversely the other airline may now be in a position to be offered the ability to loan. If your transferee airline wants to borrow money do it before the transfer.
what is the requirements to take loans?
Large net equity consisting of terminals, seats, and aircraft.
Ooooh. Thank you for that. I never even thought of that. How would that affect already outstanding loans?
It would not affect any ongoing loans. You just cannot go into negative net equity.