14 replies to this topic

[Hake.]

I came up with this idea as a solution for profitabe airlines to expand if in debt or to get new planes. What does everyone think?

[M4matthew]

Wouldn't this just encourage airlines to go into debt? Besides if they're profitable they shouldn't be in debt in the first place.

....I can't think of a privately owned airline getting a bail-out (or a government payment) just to order new aircraft - other than Emirates. It simply doesn't happen.

EDIT: Also, isn't that what bonds are for?

[Yuxi]

If you need a bailout in AE, you're doing it wrong

[Delta787]

When you mention a bailout, I thinking of airlines in severe debt, like in the millions or billions and just trying to stay afloat. If you want to use it for that, I'm for it.

Wouldn't this just encourage airlines to go into debt? Besides if they're profitable they shouldn't be in debt in the first place. ....I can't think of a privately owned airline getting a bail-out (or a government payment) just to order new aircraft - other than Emirates. It simply doesn't happen. EDIT: Also, isn't that what bonds are for?

I agree with what M4 Matthew said.

[Delta-Northwest]

If you need a bailout in AE, you're doing it wrong

I have to agree with yuxi on this one....

[Moldova96]

Bailouts should not be introduced, the airline should be forced to restructure it's operations, sell of assets it holds and shrink down it's operations. Bailout just encourage uprofitable airlines.

[violetQueen]

Isn't that what bonds are for?

[Pineair]

Bankruptcy and start again no need for bailouts.

[Mr Tree]

Bankruptcy and start again no need for bailouts.

Yes, perhaps then you would properly grow an airline. There should be no need for bail-outs.

[Hake.]

Bankruptcy and start again no need for bailouts.

Isn't that what bonds are for?

It's not what I'm trying to say, for example if there is an airline making 5,000,000 a day in rervenue but they need new aircraft/ are in debt and want to keep profitable parts that a profitable airline can give them maybe 1,000,000,000 which they would repay in some years time when it is profitable. If not the lendor can liquidate the airline.

[pseudoswede]

If you need to repay, then it's not a bail-out. It's a loan; and there is already a bond system in place.

[sviridovt]

He means loaning money from other airlines, while it would be kinda cool. I can guarantee you that people will abuse it and like people said, there is a bond system in place which is similar.

[leigh]

I don't think this is a good idea at all. Part of maintaining a successful business is to ensure sufficent cashflow at all times.

Infact, I believe AE is not harsh enough to players in debt. I have observed airlines that are millions of dollars in debt, and therefore shouldn't be able to pay employee's wages, suppliers invoices, purchase fuel etc, yet continue to operate an airline for years.

I would argue that if you do not have the cashflow for these items for a period of, say, 3 months, then the company placed in administration and liquidators start selling off assets until either all debts are paid and cashflow is in the positive, or the airline is bankrupt and removed.

It was crazy to see an airline that had no cash, and a negative valuation continue to dominate the market on various routes.

[M4matthew]

I don't think this is a good idea at all. Part of maintaining a successful business is to ensure sufficent cashflow at all times.

Infact, I believe AE is not harsh enough to players in debt. I have observed airlines that are millions of dollars in debt, and therefore shouldn't be able to pay employee's wages, suppliers invoices, purchase fuel etc, yet continue to operate an airline for years.

I would argue that if you do not have the cashflow for these items for a period of, say, 3 months, then the company placed in administration and liquidators start selling off assets until either all debts are paid and cashflow is in the positive, or the airline is bankrupt and removed.

It was crazy to see an airline that had no cash, and a negative valuation continue to dominate the market on various routes.

You should be able to 'like' IP.Board comments

[Mobeer]

I don't think this is a good idea at all. Part of maintaining a successful business is to ensure sufficent cashflow at all times....

This is good.

In R5 there are airlines in debt by billions that will keep on flying and keep losing money so long as the player occasionally logs in. Worse still in R2 the world was full with hugely indebted airlines hogging spaces.