Hi, at the moment I have 2 companies, the holding group and a subsidiary.
The subsidiary is public and the holding group has some cash from dividends. I want to get that cash to the subsidiary. Since I can't transfer money directly, how would I go about transferring aircraft?
Do I have to own the aircraft, or can I transfer leases?
You have to own the aircraft, and if the subsidiary is public, you can really only sell it once. However, you can sell an owned plane and lease it back, or simply lease it out to your subsidiary to transfer some money per week.
If my holding company buys an aircraft, can I lease it to the subsidiary at a favorable rate?
You can lease it, but I believe it has to be at a 100% rate. I could be completely wrong about the percentage... I haven't ever done it myself before.
The biggest issue about leasing a plane from a holding is that the holding needs to have a lot of equity to be able to be a lessor. I don't know what the amount is right off the top of my head. Let me look.
Yep, just like an IPO, you need $20 million in equity to lease out aircraft.
You need 20 million AS$ equity to basically do anything finance-related.
$20m equity is fine.
Is quite annoying that I can't invest directly into my airline though.
It has to be 100% of book value. Any deviation from book value could allow a public company to funnel funds to a private company. The stockholders want their dividends.
Well ideally, I would like to directly inject capital into a business, and not have to do shady lease agreements. But if not possible, so be it.
Would probably be a decent idea to just found a separate airline and interline with the public one.
... and not have to do shady lease agreements...
every leasing you do between your holding and it's public subsidiary are at official prices, based on the book value of the aircraft. Nothing shady about it.
Things would become shady if you were allowed to inject money or remove money from your public subsidiary. The former would be a gift to the share holders, the latter would be theft from the share holders.
Removing money from a public company is indeed theft and should not be allowed. Providing money is unusual unless the company is struggling, but not unheard of and it adds value to the company, not just arbitrarily raising the share price - there are securities, whether cash or aircraft, to back it up.
Or lease agreements without a security deposit would be another way to do it, since that way the security deposited is not counted into your equity and therefore leasing an aircraft from your holding company would not influence your company’s value.
My enterprise bought a plane and gave it as a gift to the holding.
The holding is suppodes to sell it back to the enterprise.
However, when I want to complete the deal it says "transaction forbidde, it is considered cheating".
What can I do now?
The idea was to give money from the enterprise to the holding.
Are you using Asset Managment > Aircraft Transfer?