Switching from a Holdings to an Enterprise

I’m currently operating in a holdings company. I looked at creating an enterprise however it says I must have at least $3million. Is it possible to simply move my aircraft, and their value, to an enterprise so that I can get the clock ticking on a possible stock market IPO later on?

put simply: no :)

but the idea would be nice, but very difficult to implement

This should be doable as it happens in real life.

Unfortunately not much you can do about it.

Hi,

it is easy enough to get a loan if you own planes. Then use the loan to create your subsidiary. On the other hand, how long does it take to earn 3 million ?

Jan

Here’s a related question - if I fold my enterprise, does everything go back to my holding?

Mostly. You have to pay execution expenses and all weekly fees(IIRC), so you will loose some % of enterprise value.

Does this include aircraft though? As in the physical aircraft, not just the value.

No, you will receive only money, nothing of specific assets transferred back.

Hi,

if you delete your subsidiary, AS will…

  • fire your staff and give them a severance pay,

  • return all leased planes and get the deposits back minus the last weekly lease,

  • sell all your shares (I am not sure whether you get back what you paid for the shares, or whether you get the current value of the shares),

  • sell all your owned planes back to AS (price = current value of the planes),

  • hire a contractor to demolish your terminals.

Then all the (remaining) money is returned to your holding.

Basically what you loose in terms of money is: severance pay, depreciation of owned planes, value of the cabin seats and all the money you invested in terminals.

Jan