Rankings

I'm still confuse about indicator in the rankings list, why airlines with a lot of aircraft have a great company value?

Because they get the most profit and are therefore most valuable

More airplanes = more profit. More profit = "what you do with the profit".

 

If you have $50 mil in cash & you buy one of your airplanes & it costs $50 mil...you have just "added" $50 mil in "valuation" to your airline.

 

So @ the end of the month if you go in the red (you have no money to spend & actually have a negative amount to cover, like -$10,000,000) the valuation of your airline would be $40 mil b/c the airplane you bought is an asset worth $50 mil. Keep in mind that the value of the plane depreciates.

If you have $50m in cash and buy a currently leased airplane for $50m, then your valuation will only increase by half the lease payments made previously (as this money is refunded when buying the leased plane).

 

More significant is that an airline with many planes typically has high profits, as each plane is earning a small profit on average.

 More profit = "what you do with the profit".

 

And that is the problem with the game, it would be nice to have more things to spend money on

And that is the problem with the game, it would be nice to have more things to spend money on

making ifs that makes you lose the most money and having low fleet utilisation usually helps the problem of having too much money.

making ifs that makes you lose the most money and having low fleet utilisation usually helps the problem of having too much money.

Indeed.

Profit margins can be limited to 1-5%, which is far more realistic.

(Though I'm under the impression that ~1% is most realistic)

Also that.

But then players will bitch and whine how they will run out of money. So they either have too much money or not enough of it. Geez you're a hard crowd to please.

We should just outlaw money

"In AE, your airline's valuation = cash + value of owned aircraft + value of unfulfilled aircraft deposits + cost of terminal buildings." -Yuxi

 

No clue what you mean about re: leased plane valuation. The value of the plane is the value of the plane. SO if value is $50mil & you buy it, value of your airline increases by $50 mil. Value increasing by only .5 the lease payments you have made previously? So if you make $5mil in lease payments & then have the capital to buy the plane, your airline valuation increases by $2.5mil? Not the case.

Think about the maths. Say you have 50m cash, 0 owned planes and 0 buildings and 0 deposits.
Valuation = 50m

Say also you have a leased plane valued at 50m that you have paid 1m each month in leasing fees for the past 20 months. This has no effect on your airline valuation as this is only a lease.

You then buy the plane.
Cost to buy plane = value - half previous lease payments
= 50m - 0.5 * (1m * 20)
= 40m

New airline valuation = 10m cash + 50m air plane + 0 deposits + 0 building
= 60m

OP re "value", not calculas of lease pay-in to aircraft resulting in a diminished value of buying a leased plane.

 

If OP buys a $50mil aircraft, does this result in the airline valuation increasing by worth of the aircraft? Yup. 

..

 

If OP buys a $50mil aircraft, does this result in the airline valuation increasing by worth of the aircraft? Yup. 

 

No - it makes no difference for a brand new plane, because they now have $50m less cash.  Your own quote of Yuxi above noted "In AE, your airline's valuation = cash + ....."

 

If, as explained above, the airplane has previously been leased, then the airline valuation will increase because the plane can be bought for less than its value.

Yes-it is, for purposes of valuation, "about" converting a lease into a purchase early in the game. I don't know anything about 10 yrs into a game, but it sounds like a bad bet to buy a plane that has been leased for 10 yrs & been de-valued to it's +10 market value & you've made 120 lease payments upon it....the most I;ve made it piror to tedium is 1 or maybe 2 years. I'm only playing in the new small real-world....obviously every plane to start was a lease. I now own 40 & lease 32 & my valuation is $1.2 bill greater than the closest competitor. SO buying after leasing is a quick way to increase & stabilize valuation before depreciation. 

 

My own quote of Yuxi doesn't make sense to me...it is Yuxi's quote...just like my "own" quote of your w/ a request to plaese explain more clearly: "...then your valuation will only increase by half the lease payments made previously (as this money is refunded when buying the leased plane)."

 

Thanks!