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I was wondering weather airline should start with some debt. Most airlines aren't started with some guys savings.
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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.
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Perhaps the starting cash should be on a long-term loan?
A picture is worth 1000 words. FH is worth 7451 [u]lines[/u]!
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I like the idea. If your airline gets money from shares, the holding companies should get some money every month after distributing incomes.
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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.
A picture is worth 1000 words. FH is worth 7451 [u]lines[/u]!
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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?