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Knocked out of top ten again.


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#1
dieseltu

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It took a lot longer.   but I'm out of the top ten.  There's some good players here.  It seems to be a pattern.   I was number one for a couple days.   And then I start slipping down.  it used to be I went down into the mid 40s.  And Iworked my way back up to top ten. twice.   I assumed it was because I ordered aircraft to slow and just 4 or 5 types.And I went red buying leases off.  But this time I stayed black.   But there's something else.    I'm not sure what it is. 



#2
Chubby Bear

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Skill mate, oh and perhaps they have no other life and spend most of their time pondering around on AE

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#3
dieseltu

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Im back in the top ten. hard work. 



#4
ElMenduko

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Oh, the higher rankings change a lot, even after the first days. Airline valuation suddenly goes up whenever someone buys lots of aircraft for example

 

What happens in my case for example is that I am making money faster than I can lease new aircraft (I have orders for a couple of years so I don't really have to worry unless a new model comes in pre-order), so I connect a few times per day to add routes to all the new aircrafts that I get delivered. During the day I build up a lot of cash, and before going to bed I spend most of it on buying aircraft from lessors so I can reduce the montlhly cost.

 

This makes my valuation go up several millions instantly and that's usually enough to go up a few ranks. Why does this happen? Because leased aircraft don't contribute to airline valuation, but owned aircraft do. So if I buy 10 of my leased aircraft right now maybe I'll overtake 3 guys, but if one of them does the same then he'll probably go up suddenly and without warning too

 

Oh, and I think terminals also contribute to valuation but I'm not entirely sure



#5
Michael.

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Oh, the higher rankings change a lot, even after the first days. Airline valuation suddenly goes up whenever someone buys lots of aircraft for example

 

What happens in my case for example is that I am making money faster than I can lease new aircraft (I have orders for a couple of years so I don't really have to worry unless a new model comes in pre-order), so I connect a few times per day to add routes to all the new aircrafts that I get delivered. During the day I build up a lot of cash, and before going to bed I spend most of it on buying aircraft from lessors so I can reduce the montlhly cost.

 

This makes my valuation go up several millions instantly and that's usually enough to go up a few ranks. Why does this happen? Because leased aircraft don't contribute to airline valuation, but owned aircraft do. So if I buy 10 of my leased aircraft right now maybe I'll overtake 3 guys, but if one of them does the same then he'll probably go up suddenly and without warning too

 

Oh, and I think terminals also contribute to valuation but I'm not entirely sure

That's not how it works at all. Your valuation remains the same when you purchase aircraft.

E.g. If you have $50 million cash and your valuation is $50 million, when you buy an aircraft from the lessor your valuation is still $50 million. 

Sp:

$50 million cash is the only asset you have.

If you spend $25 million on an aircraft, your assets are now:

$25 million in cash

$25 million in aircraft.

 

Same principle with terminals.



#6
ElMenduko

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That's not how it works at all. Your valuation remains the same when you purchase aircraft.

E.g. If you have $50 million cash and your valuation is $50 million, when you buy an aircraft from the lessor your valuation is still $50 million. 

Sp:

$50 million cash is the only asset you have.

If you spend $25 million on an aircraft, your assets are now:

$25 million in cash

$25 million in aircraft.

 

Same principle with terminals.

Hmm, you are right. I could've sworn that fleet contributed more to valuation than cash from seeing the airline history and checking when I jumped ranks.

 

Still, buying aircraft from your lessor means that you won't have to pay monthly lease, that means you'll profit more, that means your valuation will increase a little faster. Oh, and buying aircraft or building terminals contributes to your valuation without having "idling" money. You'll just lose a little bit because of aircraft depreciation, but only on very old planes (you should sell those anyways)



#7
Michael.

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Hmm, you are right. I could've sworn that fleet contributed more to valuation than cash from seeing the airline history and checking when I jumped ranks.

 

Still, buying aircraft from your lessor means that you won't have to pay monthly lease, that means you'll profit more, that means your valuation will increase a little faster. Oh, and buying aircraft or building terminals contributes to your valuation without having "idling" money. You'll just lose a little bit because of aircraft depreciation, but only on very old planes (you should sell those anyways)

Buying from the lessor is quite irrelevant. If for example you have been leasing an aircraft for years and then buy out the lease, the total amount you have spent on leasing that aircraft is deducted from the price of buying it out (e.g. If you pay $100k/month for 4 years, $4.8 million is deducted from the price of buying out the lease. For the purpose of simplifying the example I am ignoring the fact that rents decrease over time)






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