What happens if I run short of cash?

Just curious but it looks like today my airline will collapse. I’ll be about $70k short on funds later today. I do own some stock and do have 80% of my company still. Will AS automatically sell my stock holdings in another company so that way I’ll be able to pay my weekly bills?

Or if anyone on Stapleton can help, my airline “American Express” has some shares for sale. I’m profitable but the individual I was leasing terminals from collapsed and my load factors all fell through the floor. Before I can fix the problem I have to make it through this week.

Hi,

selling shares won’t help your subsidiary airline… the money will go to your holding.

If you can’t pay your salaries, AS will (automatically) give you an emergency loan. If you can’t pay the lease of a plane, AS will reposess that plane. It will cost you (cancelled flights and the cabin seats) but you will also get the lease deposit back (minus the last lease) so you should at least have some cash to get you through the next few days.

By the way, it seems strange that going from leased terminals to AS ground service causes your load factors to implode…

Jan

I’ve done a lot of studies with it. Terminals have made a HUGE impact when using older aircraft. I went from $50k+ per flight to -$25k per flight.

Could someone elaborate on the terminals issue?

Hi Saad,

I did not conduct any scientific research on the issue. In other words, I did not compare new and old planes on the same routes, under the same circumstances, with the same connecting flights, some with and some without terminals. But I operate both new and older planes, so I have some empiric experience…

Terminals are a product factor. The type of terminals a flight uses has a direct impact on the ORS rating. But in my experience this impact is limited to one or two (ORS) rating points. Translated into money: on the Cairo-London route I can ask 5 dollar more for a ticket if the flight uses a 5-star terminal, and still get the same ORS rating.

Besides, the age of a plane is an image factor. The image of a particular flight does not influence the rating of that particular flight. The average rating of all your flights makes the image of your airline company, and that is a product factor. On some routes I operate a new 73G and an old 735. I see no difference in passenger load.

Jan

so using older planes is very bad or is it slightly bad?

ive got a question that is kinda out of topic. its about making money. i have 9 planes that are all fully sceduled(about 2.30 hours max of nonflight) and the planes have flown for 2 days( my AL is in mozambique in tempelhof) but i still cant make profits. everyday im losing about 45,000 AS$ . is it because im flying to locations where my planes will fly empty?(with 0-1 passengers) or is it because i have old planes (average is 16.8 and that is thanks to 2 410´s that i have bought from manufacturer.) or is there another reason to it.

i would love to hear for a solution and what should i do