Starting

[skifans]

I was wondering weather airline should start with some debt. Most airlines aren't started with some guys savings.
[hr]
Could also have the option of funding your airlines with loans and shares. I think loans are pretty self explanatory. But you could have the fly high investment company which will buy shares from you at x a share.

[dbd]

Perhaps the starting cash should be on a long-term loan?

[emm1366]

I like the idea. If your airline gets money from shares, the holding companies should get some money every month after distributing incomes.

[yangc9635]

Perhaps the starting cash should be on a long-term loan?

How about a low interest rate, or better yet, no interest? Also, I think that there should be a percentage of starting cash that isn't a loan (ex: 25%?) That way, there won't be as many players that quit because they can't pay back their loans.

[skifans]

Perhaps the starting cash should be on a long-term loan?

How about a low interest rate, or better yet, no interest? Also, I think that there should be a percentage of starting cash that isn't a loan (ex: 25%?) That way, there won't be as many players that quit because they can't pay back their loans.

If someone carnt pay off their loan then they arnt making money. Therefore I disagree that it would lead to a higher quit rate as those who don't make money would quit anyway. I think there needs to be some form of interest applied to the loan but I don't mind if the loan only coveres 75% of starting costs. However I disagree that a low interest rate should be applied. If anything a higher interest rate should be applied. A new starting business is a far higher risk then one that's been around for decades and hence has a higher change of not being able to pay back it's loan. Therefore banks change more because of the increased risk.
[hr]

I like the idea. If your airline gets money from shares, the holding companies should get some money every month after distributing incomes.

So dividends? I defiantly think so.

[dbd]

Dividends! Yes!

Back to the loans thing, how about something like no interest until 2 months after company inception or something like that? It would allow airlines to start up and make money, but still allows a debt burden to be applied, which if the airline has found a good foothold, should be able to pay off over time.

[skifans]

Dividends! Yes!

Back to the loans thing, how about something like no interest until 2 months after company inception or something like that? It would allow airlines to start up and make money, but still allows a debt burden to be applied, which if the airline has found a good foothold, should be able to pay off over time.

Or we could do something like is applied to student loans here no which you only pay interest after you personally are earning >£x. We could apply something similar whereby you pay interest for that month if your REVENUE (I don't think profit would work here as you could just by aircraft ect. to keep profit down)

[skifans]

Another idea: back to the idea of shares of loans.
Loans:
Once your paid back your dept free & no longer have to pay interest.
Higher interest rates then normal.
Interest needs to be paid regardless of profit (goes into overdrafts)
Can see argument for no repayment on first month, could go either way on this.

Shares:
Dividends are only paid on profits (if your airline make a loss then you don't pay them)
Dividends should be smaller then interest paid on loan.
Dividends need to be paid as long as your company exists.
The FHTC (FlyHigh Trading Corporation) is very lazy and neither bothers to turn up to share holders meetings and will by the shares of a company based purely on being asked to. However they also cannot be bothered to ever sell these shares.
Just because you choose to fund your business through selling shares does NOT make you a public company and it is your choice weather or not other airlines can shares. This exists on the real world is the difference between a public limited company and a private limited company.

How do these look?