Transferring aircraft/money to subsidiary after start ?

English Boards Community Support
1

So it I start a new subsidiary with the minumum $3 million, buy a few props but then want to buy a much larger, expensive aircraft with funds from my original company, how do I do that ? I know there’s some way to do it by buying a plane and then transferring it to the subsidiary via asset management or something . . . could someone explain that process to me please ?

2

i understand you want to transfer some fund from holding company A to subsidiary B.

buy an aircraft with company A, then transfer to B, using asset management - aircraft transfer - asset transfer without compensation

now B has the aircraft, without spending any money, B then can sell the aircraft back to A, using asset management - aircraft transfer - sale

the aircraft back to A possession, B got paid the book value of the aircraft.

repeat the process until you run out of money in A..

3

Thanks rpandugita!

I'd like to add one word of caution here. Make sure you are not automatically hiring cockpit crew for your airplanes (it's in the preferences). After 3 back-and-forth movements on a very cheap plane, I am now stuck with 24 useless pilots. (Don't lay them off, just keep them for later / retrain them to another plane type, as laying off is very expensive).