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I just started playing Sat., Sept 16, 2012 (California Time), and I see players , who I understand could not have started more than 48 hours earlier, with airlines valued at over $50 million.
Obviously, I'm doing something terribly wrong.
So, I see I can issue up to 10 bonds, rated BB, at 14% interest. Let's say I issue only 5 bonds. The annual interest comes to $900,000.
I believe I can earn a return far higher than $900,000, thus justifying the interest cost.
My question is this: does the game allow companies to pre-pay bonds, with or without a penalty, or am I stuck paying that interest for the full life of the bond -- say 10 years?
This would cause me to reconsider such a strategy.
Thanks for any helpful input.
Bonds as a way to jump start leasing planes
Started by ezkeilprincetyrus, Sep 17 2012 03:17 AM
#1
Posted 17 September 2012 - 03:17 AM
ezkeilprincetyrus
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#2
Posted 17 September 2012 - 03:35 AM
I wouldn't bother with anything but the $5M bonds. Then again, I don't bother with bonds at all.
You cannot pay bonds off early.
You cannot pay bonds off early.
#3
Posted 17 September 2012 - 03:39 AM
Every bond you take lowers your credit score, the worse it gets the less planes you can lease.
Value is a measure of cash on hand, terminals owned, planes owned.
I have never taken more than 1 bond. The bond's are so low, that after about a year, a bond would not even dent my monthly payroll, much less a/c maint, gate leases etc. Best is to take a 5 mil bond on or about the 6th of the month and use it to lease several more planes. Once you get to around 500-1 mil a day profit, lease another plane type/family.......example, start with Vickers 810, next plane type is DC-7.........that way you are getting to planes at staggered intervals. But until you are at 20 mil plus a day, stay at around the 5 plane families max.
No pre-payment, you will pay it until the bond expires
Value is a measure of cash on hand, terminals owned, planes owned.
I have never taken more than 1 bond. The bond's are so low, that after about a year, a bond would not even dent my monthly payroll, much less a/c maint, gate leases etc. Best is to take a 5 mil bond on or about the 6th of the month and use it to lease several more planes. Once you get to around 500-1 mil a day profit, lease another plane type/family.......example, start with Vickers 810, next plane type is DC-7.........that way you are getting to planes at staggered intervals. But until you are at 20 mil plus a day, stay at around the 5 plane families max.
No pre-payment, you will pay it until the bond expires
#5
Posted 17 September 2012 - 07:24 AM
Two $5m bonds will knock your credit score to CCC which allows 20 leases. This is still enough to expand and if you keep up repayments then your credit rating will improve, probably to BB, maximum 70 leases, before you have 20 planes in service.
Things might be different in a special non-leasing world were the credit score loses it's significance.
Things might be different in a special non-leasing world were the credit score loses it's significance.
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