6 replies to this topic

[SkyWest]

Can some give me the run down of bonds?

 

Cheers

[Viero]

Bonds are small cash injections for your airline - they're helpful at the beginning for expanding your airline and can bring your airline out of the red, but are near useless one you have a well valued airline (~300 mil).

They come at a price, however - each month a small payment must be made, and if you fail to meet 6 payments consecutively (like if your airline is in the red), your airline is considered bankrupt and closed.

[Issa]

Also every bond you take out reduces your credit rating which makes it harder to lease planes

[SkyWest]

Thanks guys!

[SkyWest]

One more question, is it possible to pay them back early?

[David Guerra]

No you pay it in increments based on how much you issued and when the maturation date is

[4WD]

One more question, is it possible to pay them back early?

 

No....we all know it's stupid that you can't...