Subsidiaries Finance Question

Hello and apologies if this has been asked before but I couldn't find an answer while searching. I have started a holding company and a subsidiary company, question is that if I want to send money from my subsidary to holding company how do I do this?

Thanks in advance.

only with an IPO of the subsidary

only with an IPO of the subsidary

So the only way to get money for my holding corporation is to sell shares of my subsidary corp to the public? Sorry if I am mistaken, just thought there would have been a feature to transfer money between corporations / holdings.

There was another thread that suggested this. I did it, and it worked. Can't confirm or deny if it's against the rules or not, but no one in the other thread said it was forbidden.

Buy a cheap aircraft. I bought a Convair CV-580. In your case, buy it with your subsidiary. Go to your Game Settings under Settings tab and turn OFF "Automatically assign default seating configuration to new aircraft", "Create standardized seating configuration.." and "Automatically assign crew to new aircraft". Make sure all those are 'no'. Make sure you do this for both your holding and your subsidiary. This is quite important.

Go to "Asset Management", then "Aircraft Transfer" under your subsidiary. Choose your holding under "Pick the receiving company". Then pick "Asset Transfer Without Compensation". Then choose the Convair (or whatever) and send it to your holding company.

Next you have to go into your holding company and go to "Asset Management". Do the same as above to transfer the plane back to your subsidiary, but instead of choosing "Asset Transfer Without Compensation", choose "Sale". This will sell the plane from your holding to your subsidiary, and your subsidiary sends money to your holding.

Since you have to pay for the aircraft first to do this, I suggest picking a cheap plane. It saves money, though it takes longer. Just make sure you follow the directions, or else you will pay for hiring new pilots and crew each time you transfer, and you'll end up with dozens of unusable staff you have to pay, and if you fire them... yeah, I learned that lesson the hard way.

And so you pay twice for one aircraft? Doesn't seem economically wise to do so

And so you pay twice for one aircraft? Doesn't seem economically wise to do so

I have one plane for wich I have payed 144 times in the last three weeks and every single time it was economically wise.

You may have missed this :

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This will sell the plane from your holding to your subsidiary, and your subsidiary sends money to your holding.

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And so you pay twice for one aircraft? Doesn't seem economically wise to do so

You only actually pay for it once, when you buy it from one of the AS companies. After that, you transfer the aircraft between your companies, and the money is transferred in the opposite direction. That's why I suggest getting a cheap plane to start with. It will take longer to transfer money, but you don't have to lose a lot with that initial purchase.

I have one plane for wich I have payed 144 times in the last three weeks and every single time it was economically wise.

We are not talking about leasing here, but buying

You only actually pay for it once, when you buy it from one of the AS companies. After that, you transfer the aircraft between your companies, and the money is transferred in the opposite direction. That's why I suggest getting a cheap plane to start with. It will take longer to transfer money, but you don't have to lose a lot with that initial purchase.

I got that, what I meant, and may have not be well understood because my first post wasn't clear enough, is that you pay twice the price of the aircraft with your subsidiary for nothing, and just transfer half the money you lost to the holding.

So, if I needed to transfer 10 million to my holding, I would be transferring 10 million and wasting 10 million more. That's why I think it's not economically wise.

No, to transfer 10 million, you only need to find a plane thats worth 1 million and then repeat the operation 9 times..you lose 1 million but transfer 9 million that way you lose the less money possible!! ;)

I got that, what I meant, and may have not be well understood because my first post wasn't clear enough, is that you pay twice the price of the aircraft with your subsidiary for nothing, and just transfer half the money you lost to the holding.

So, if I needed to transfer 10 million to my holding, I would be transferring 10 million and wasting 10 million more. That's why I think it's not economically wise.

No, to transfer 10 million, you only need to find a plane thats worth 1 million and then repeat the operation 9 times..you lose 1 million but transfer 9 million that way you lose the less money possible!! ;)

Ah, ok, hadn't thought of that. That makes much more sense.