Suggestions for next AS Patch


#1
  • Possible improvement for Corporate Finance
    Since I launched subsidiary operation last month, I have to move the cash from first company to the others everyday. The media I used were some islanders, when business got bigger i bought a CRK(33M$).

    As we know, present Loan System is work like this, once your Flight Equipment(FE) under your Assets sheet is over 10M, you can have appx. one third of the amount of FE out. For example, a brand new airlines with a CRK(33M$), you can immediately get 11M cash out. And of course, you have to pay back and the interest rat is damn high.

    Now, if you have one a/c at least values over 10M, you can let’s say create 2-3 subsidiaries for different hubs or markets. What can be happening is and really risky for your financial rating is, Only One a/c can take out Loan from Each of these subsidiaries. If any of the new player, happened to do so, first please make sure you are able to payback those loans in time. Because the Credit Granted by the bank is 2-3 Times it supposed to be.

    There is no way to avoid financial issues like this by now. Let sit tight for As next updates to fix it. A verification step is very necessary to check if the asset and liabilities doesn’t go wrong by 3:1 ratio when transferring the a/c between the subsidiaries.

This is the one suggestion i can think of by now.
I know there is still a lotttt of the complain about the turn around time and new ors system. Hope someone can enlighten the dev. to work out a better way.


#2

If you go from Islanders to buying a CRK I think you might want to rethink your strategy. If I decided I would allow unlimited loans and if you cant pay them you go under. Considering the enormous interests they are very impractical but if you wanna risk it then why not?

Also you cant take unlimited loans and remove all assets. I have a couple of times been blocked from transferring away aircraft from companies with huge loans.


#3

Good to know in your case, a/c was blocked from transferring away. I am wondering if there is a secondary liabilities/FE ratio (less than one third maybe) is set to prevent edge operation like that.

Islanders and CRK are just for explaining the fact. I had other a/c eg. Cessna in between.

Most of my concern is, as the company grows bigger, it’s getting easier to acquire a large amount of loans which is a advantage not shared by every company. It may occur further potential risk for the balance of competitions. This is a strategy game, I believe every airlines shall have the equal advantage running our routes.


#4

To buy a CRK to be able to get loans you need about 30 million which takes weeks if not months to save up for a new player. For the same amount you could get 20 leased CRK and operate them and make more money. Furthermore as I previously said loans are very bad.

For example: If you start with 10 million and invest those and make a profit (highly unlikely) of 5 million per week you still need 6 weeks to buy a CRK just to start getting loans which you will pay a hideous interest for.

If you start with the same 10 million and make the same 5 million in profits and gradually reinvest them into the business you will get exponential growth (ie first week 5 million in profit, second 7.5 million, third 11.75 million, etc). So after six weeks you will make almost 33 million in profits (almost 50 million the week after).

I dont know about you but I would rather make 33 million per week than make 5 million. I dont call that unfair. Plus that when you finally got the ability to take loans and expand your fleet then all the slots will be already gone by the player making 50 million in profit.

Also as advice, if I where you I would rethink my fleet strategy. Cessna, Islanders and an owned CRK isn’t the best combo.