Jump to content

Photo

is it a good idea to issue bonds?


  • Please log in to reply
6 replies to this topic

#1
Shaq

Shaq

    AE Player

  • Member
  • 97 posts
im in a realistic world

#2
2ndAcr

2ndAcr

    AE Know It All

  • Member
  • 246 posts

User's Awards

   7    2      
From what I have found so far, it gives you a boost at start for aircraft. A 5 million bond is only 60,000 per month in interest payments. You can not pay back the bond early. So come the due date, you better have all the cash ready to go.

My airline has one 5 million bond and that is it, but it allowed me to lease about 8 used airplanes at startup which gave me a pretty good boost off the starting mark.

#3
Yuxi

Yuxi

    AE Developer

  • AE Developer
  • 4,343 posts
I generally don't use bonds. It's not a bad idea to take out one in the beginning, but be careful not to take too many or your credit rating will be too low to lease aircraft ;)

#4
Denis C.

Denis C.

    New Member

  • Member
  • 4 posts

Yuxi, couldnt you try developing a payback button, eventhough you charge a banking comission for cancelling the Bond earlier then agreed. I think in general the AE comunity, wishes such a button existed. Also i know this is not related to this topic, but has anyone considered the idea of improving AE with not only PAX but incudling cargo as well, for something you transport like in RL.



#5
Rollercoaster

Rollercoaster

    Pizza.

  • Banned
  • 36 posts

Yuxi, couldnt you try developing a payback button, eventhough you charge a banking comission for cancelling the Bond earlier then agreed. I think in general the AE comunity, wishes such a button existed. Also i know this is not related to this topic, but has anyone considered the idea of improving AE with not only PAX but incudling cargo as well, for something you transport like in RL.

Replying to a post closed 4 years be like  :furious:


iNGC6W7.pngMember at phoenix

 

This Account is owned by AE Member Steam. 


#6
Book Siberia

Book Siberia

    AE Know It All

  • Member
  • 209 posts

User's Awards

5    3    3      

Not to contradict Yuxi or anything, but it is pretty straightforward to take out 2 to 3 5-million dollar bonds right at the start of the game and lease 4  planes with those proceeds.

 

However, you must know what you are doing - you must put up the first few planes immediately upon receiving them.

Use all available hours for each and every plane - centralize flights from one or two airports to surrounding airports.

Keep a close eye on all lease costs.  Make sure you extend the lease for all planes to 10 years, including the initial plane you chose.

 

It will take 4 to 6 weeks for most of the planes to arrive once ordered.  For the next 2 months (game-time) you will be unable to order more planes until you show a profit for the month.  And naturally you will show a loss for that first month.  But once those planes are all up and fully-routed, the DOP will start snowballing and by the end of the 2nd game-month you will eke out a small profit due to the fact that the overall DOP reaches a point where all expenses incurred by your airline are readily covered.

 

Once you show a profit at the end of the 2nd game-month, your bonds will receive a rating increase, and this means that you can have a total of 20 planes leased, but only order a 3rd of your current fleet size so that the DOP will accumulate progressively and start building a good deal of cash.  

 

Continue in this manner for the next 3 game-months, staying within the 3rd-of current fleet size order guideline, and you will stay in profitable terrritory.  Do not order planes with more than 250 seat capacity during the first 3 months as the leases are too large for your DOP.  Once you reach the 10-million-dollars-a-day DOP point, you an start ordering larger planes if you wish.

 

Note that the strategy I have outlined above is very aggressive so it is not for the timid or the faint-of-heart.  But handled correctly the tradeoff is accelerated DOP right out of the starting gate which will catapult you towards great profitability as the DOP will bring in the money necessary to expand.  From experience, by the 6th game-month in, you will have a very large reserve of cash with which to expand.

 

Even if a player opts not to employ bond-leverage, I hope that I have sufficiently imparted the knowledge necessary to understand the strategy outlined above.  The more you know, the better you will be able to compete and perform.



#7
Riddim_Killa

Riddim_Killa

    Member

  • Member
  • 53 posts

I concur






0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users