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What causes Bankruptcy?

S2

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#1
Pacific Airways

Pacific Airways

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Hi,

I'm curious about what are the few things that can throw an airline into bankruptcy...

Clearly, not paying bonds in a timely manner is a common one.

But in S2 once an airline has paid all of it's bonds it appears it can continue operating indefinately at a loss without being forced to go BK.

There are several small airlines with a negative (and increasing) value that has been going on for 2 -3 years (I'm sure even more but I didn't track it).

So for realism purposes, we know that airline is not able pay for fuel at the airport, wages for it's employees or maintenance for the planes, however the airline keeps flying and increasing the losses without going bust.

What concerns me about this is that you could be able to use your second airline to trash your competitors... just give it enough planes and then trash competitors' markets losing money for 30 years withouth ever going BK.

Any thoughts??

#2
pseudoswede

pseudoswede

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There is no automatic script to rid worlds of inactive airlines or those severely in debt (with no chance of recovery). Inactive airlines are removed manually, and airlines severely in debt are only removed if it has abused the payroll system.

It would be most helpful if there was one, and it has been suggested many times.





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