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Merger, acquisition, chapter 11 bankruptcy, subsidiaries, contractors.

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#1
ветер

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I noticed that you could give shared control to another player or delete you airline through bankruptcy. Which in someways this can be realistic but at the same time, not really. As you all probably know American Airlines and US Airways just merged creating the worlds largest airline. In AE say that there is an airline that isn't doing so well financially and is imminently going to go bankrupt. But a very large airline in the game might find value in acquiring or merging with this airline ex.(fleet,terminals,hubs). The airline could sell its self to the large airline. This would be what I call positive acquisition. Now we would have to put some regulations into place, at least in realistic worlds because Foriegn companies cannot own an entire company from another country, (with the exception of the European Union). Now say there are two airlines that aren't in financially good shape but believe that of they would merge it would revive the company. In this case I would call it Nuetral Acquisition. The two airlines merged into each other and create one sole company but with shared control. In another occurrence a financially unstable airline can declare "Chapter 11 bankruptcy giving the airline 2-3 real life days on a market where large airlines could pick these airlines up. (For a charge of course), now depending on what the airline wants to do with it's newly acquired airline decides whether or not you will get shared control. So it could be a win or loose situation. If your airline is not sold in the specific 2-3 day time frame then the airline ceases operation and the same thing that happens when you declare bankruptcy in AE3 happens to you. Now deeper into acquisition options the acquire could either absorb the fleet, acquire all terminals, acquire hubs, acquire gates, completely merge into or they could create a wholly owned subsidiary. Airlines could use and create subsidiaries in a variety of ways. Subsidiaries Ex.(United Express, Delta Connection) are directly linked to the parent airline all revenue and DOP is absorbed into the parent airline. Subsidaries could be either created wholly at a cost or acquired through merger or chapter 11 bankruptcy. Subsidaries can also be sold later under the same terms of a chapter 11 bankruptcy. But Subsidaries can be spawned from the parent airline or re absorbed at any time but at a cost. If two airlines merge and they have Subsidaries the Subsidary is first absorbed into the parent airline and then absorbed into the merger this happens at no other cost except for the initial cost of the merger. Subsidaries can also have contract airlines working as the Subsidary ex.(Skywest and United Express). A little more into Contract work if you are an airline from the same country as the Subsidary you could work a contract with the parent company to fly routes for the Subsidary. Now how much DOP you get from contracting work depends on how much percentage of the routes you are taking not the actually DOP of the route you are operating. Now depending on how large the Subsidary is and how much DOP the Subsidary gets contracting work could benifit airlines early on with a large DOP for the airline size. But remember contracting work is at the leader(s) of the parent airlines consent. Meaning if a contractor gets to large and takes to much revenue than the contract can be cancelled.

I realize some of these features might be already expressed in AE3 but this could enhance these features and really adds realism to the game.

You can only Acquire, Merge or operate a Subsidary airline in the same world.

Please leave comments, critisicm, my dogs balls or any type of concern in the comments below.

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#2
Guest_Eastwind CEO_*

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Approve judging it will be easier than to re-create the acquired airlines routes at fleet



#3
KJS607

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Takeovers are a no, we have established this already.

 

Subsidaries are planned for AE4.


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#4
ветер

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But Kai what about just plain mergers where it ends in shared control

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#5
QK Flight Industries

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Unfortunately, breezz, the logistics behind implemented a "merged" airline, even with shared control, are often messy and disputes can arise over what can be very subjective issues. So, as far as I know, there will not be any implementation of merging two separately operated, individual airlines.


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#6
ветер

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Ok just wondering whatever is fine with me

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#7
ThreeGreen83

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What about the ability to "sell" your airline.... Say you built an airline up... love your little airline (or don't) and then decide, wow, life just got in the way and I can't run this anymore... instead of letting your carrier sit dormant or closing it completely... why not put it's assets up for sale (either as a whole company or as parts?).


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#8
Hake.

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What about the ability to "sell" your airline.... Say you built an airline up... love your little airline (or don't) and then decide, wow, life just got in the way and I can't run this anymore... instead of letting your carrier sit dormant or closing it completely... why not put it's assets up for sale (either as a whole company or as parts?).

Ah yes, and the proceeds go to your non existent holding company?

#9
KJS607

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What about the ability to "sell" your airline.... Say you built an airline up... love your little airline (or don't) and then decide, wow, life just got in the way and I can't run this anymore... instead of letting your carrier sit dormant or closing it completely... why not put it's assets up for sale (either as a whole company or as parts?).

That's why you use the shared control feature :P


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#10
channy_thegreat

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What about the ability to "sell" your airline.... Say you built an airline up... love your little airline (or don't) and then decide, wow, life just got in the way and I can't run this anymore... instead of letting your carrier sit dormant or closing it completely... why not put it's assets up for sale (either as a whole company or as parts?).

 

Sell it, lose control and then lose all the money in the world? 

 

You can't exactly take the money with you when you sell it. 



#11
bAnderson

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The original idea was great. I think that it is great. I would approve it 100%.


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