I’m stuck
#1
Posted 15 August 2018 - 03:27 PM
So can somebody recommend to me which is the correct way I should go towards as I am steadily dropping down the ranks from No. 21 at my peak to No. 41 currently
Thanks so much in advance!
#2
Posted 15 August 2018 - 04:30 PM
Being in R0, I have seen your company, but cant say anything about your competitors in your routes, but what I can say is that it seems that for the size of your airline, you have leased an enormous amount of new planes.
Leasing fees are considered costs. When you lease a plane, you have to immediatelly pay 6 months leasing, which enters in your accounting as costs.
When you purchase a plane, it is not considered a cost.
A large increase in your costs may have caused your drop in the position scale. I bet that when you placed the orders (by leasing) you paid no taxes at all that month ...
I only lease planes in quantity, when I am going to pay a lot of taxes. I check it on the 24th of each months, and lease planes accordingly as to keep my net profits low and pay lower taxes.
All this strategies are logical and make sense, but dont help you to go up in the charts, which, if I can say, are useless for me, because I really care about passengers transported.
#3
Posted 16 August 2018 - 08:42 AM
Buying your leased planes should improve your valuation, at least for a while. Also, check if you're not overpaying for leasing planes you'd normally get for free after a couple of years of leasing.
#4
Posted 16 August 2018 - 10:42 AM
For air caraibes it drives my prices down very heavily (from $1000+ first class fare to just $600 and once it drove until the business class fare is higher than first class)
I emphasise on employee welfare so I pay them much higher than the average, accounting to about $300 million a month which I think is calculated every 17 or 18 of each month so closer to the date I stop buying my leased aircraft or leasing my aircraft
For the leased planes I lease as I was planning after earning more than $50 million a month or I can bulk order planes (maybe 50 to 100 at a time) and have a very steady cash flow then start ordering instead.
#5
Posted 16 August 2018 - 10:44 AM
buying the leased planes doesn't help much at the moment, because the problem were probably the 6 months leasing fees for all the purchased planes. To buy those planes even as you receive them, would imply loosing the six months lease already paid for.
Also, if you have any money available, the best thing would be to use that money to purchase planes in the second hand market, for those can be put immediatly in routes and start making money.
#6
Posted 16 August 2018 - 12:30 PM
I’m planning a fleet restructuring-ish sort for thing so how that will work is I will buy all the planes currently so I do not have to worry about lease unpayment and I’ll also buy all my aircraft that will get delivered, this way, I can quickly swap to ordering new aircraft instead as buying used aircraft entirely and using it as your only source of supple isn’t that great.
I don’t know if that’s a good idea so ummm welp
Update: 177 aircraft owned, 266(around there) leased
#7
Posted 12 September 2018 - 08:46 AM
#8
Posted 24 September 2018 - 07:40 AM
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