Airline Mogul Forum

Airline Mogul => General Chat => Topic started by: AirHanoverInternational on December 11, 2007, 08:18:52 pm

Title: Bancruptcy question
Post by: AirHanoverInternational on December 11, 2007, 08:18:52 pm
I have big expenses on gate rentals (>70M EUR). Will I be declared bancrupt if the script runs 1st January and my cash is below 0 EUR ? My DOP is 51M EUR...
Title: Bancruptcy question
Post by: StephenM on December 11, 2007, 08:31:29 pm
At the moment we have a three tier bankruptcy system.
If you go into debt in cash but you have assets to cover your debts (I.E. Just a short term cash flow problem) this is your case, you will not be bankrupted unless one of the above apply.
Title: Bancruptcy question
Post by: AirHanoverInternational on December 11, 2007, 08:43:07 pm
Thanks for that useful information. Now I can waste my money on new a/c and routes until the end of the month :D
Title: Bancruptcy question
Post by: Gustavo on December 12, 2007, 12:43:38 am
"If you are under €0 value you will be bankrupted when that script is run, this one is not daily yet."

when, in the beggining of the game month, airline value is negative, but at the end of the month, it gets positive, does it goes bunkrupt?
Title: Bancruptcy question
Post by: dktc on December 12, 2007, 12:49:11 am
Quote from: "Gustavo"
"If you are under €0 value you will be bankrupted when that script is run, this one is not daily yet."

when, in the beggining of the game month, airline value is negative, but at the end of the month, it gets positive, does it goes bunkrupt?


If the script is run at the beginning of the month, it goes bankrupt. The script is run manually at the moment, so the time it is run could vary.

However, if you go -ve in value and then back to positive value, your airline probably would not grow. You may want to lease less planes or gates...etc. (Note: negative value, not negative cash)
Title: Bancruptcy question
Post by: Gustavo on December 12, 2007, 01:11:02 am
Thats no good... Usually, my airline company just gets some cash after 19 days in a month. In the 24th day, it has about 7.5 mil in cash. Then I get the money, lease 1 or 2 constellations, and open new routes. so far, it's working, next month, I´m gonna, probably, manage to lease 3. I guess that, in 3 or 4 months, I'm gonna be able to buy my first constellation, on open market.

From that point of view, my company is profitable. I think that a bankruptcy, in this case, wouldn't be fair.

well, thanks for replying, anyway.
Title: Bancruptcy question
Post by: dktc on December 12, 2007, 01:24:41 am
Quote from: "Gustavo"
Thats no good... Usually, my airline company just gets some cash after 19 days in a month. In the 24th day, it has about 7.5 mil in cash. Then I get the money, lease 1 or 2 constellations, and open new routes. so far, it's working, next month, I´m gonna, probably, manage to lease 3. I guess that, in 3 or 4 months, I'm gonna be able to buy my first constellation, on open market.

From that point of view, my company is profitable. I think that a bankruptcy, in this case, wouldn't be fair.

well, thanks for replying, anyway.


Negative cash would NOT get you bankrupt.
But for most real world airlines, negative asset (debt > asset + share) would result in bankrupcy. You just can't manage a business that is always in bankrupcy. Small businesses go belly up because of that every single day in real life.
Title: Bancruptcy question
Post by: Gustavo on December 12, 2007, 01:46:34 am
Right now its value also is negative, but in the end of the month, it won't be. so... It's profitable! :wink:
Title: Bancruptcy question
Post by: Air Elbonia on December 12, 2007, 03:37:21 am
Quote from: "Gustavo"
Right now its value also is negative, but in the end of the month, it won't be. so... It's profitable! :wink:


yep. overall that's considered profitable.  At present, the negative value bankruptcy script is run what i would call "rarely". so you're probably safe.  However, taking 19 days to pay off your fixed costs, you may want to look at some of your more expensive leases to see if they're (by themselves) making money or losing money.  Who knows, there's a chance you can make yourself more profitable by cutting a city served, or an overly expensive lease. :) good luck.
Title: Bancruptcy question
Post by: Gustavo on December 12, 2007, 04:46:15 am
yeaaaaah! that's good news!!! man, I got really worried. I've been spending a lot of time (and my math :P ) on this game since I made my account (about 1 week ago), and it would be frustrating to lose all that time and efforts. I didn't know that the script could, simply, kick me out of the game because of the negative value in the beggining of the month.

As I said, I think that if I pay all my dues along the month, and in the end of this same month, I have some cash, this is not a bankrupcy case. Anyway, knowing that I'm not gonna be kicked out of the game is a relief ;)

About the 19 days, it's decreasing. It used to be a longer period, believe me. :P
I know that leasing is not the most profitable way to do it, but starting from the point I started, when all companies were, already, consolidated, it gets pretty hard to compete using old and small and slow and short ranged DC3's. Besides, long flights are way more profitable for me and, from my base, they have less competition.

About the leases, yes, they're making some money. counting (daily profit) - (gate rent + plane lease), remains some money in the box. as I told before, it's a hard competition, hard to get bigger from this point of the game. hard but enjoyable.

Thank you guys for all attention and for maintainig the game.
Title: Bancruptcy question
Post by: suntoucher on December 12, 2007, 04:49:58 am
Yeah I'm the same, I'm at the stage where I'm making a monthly profit(only 16mil but it works) but to increase that I'm going to have to dump some of these leases and buy the plane instead as the routes left aren't that profitable by comparison.
Title: Bancruptcy question
Post by: dktc on December 12, 2007, 05:01:39 am
Quote from: "Gustavo"
As I said, I think that if I pay all my dues along the month, and in the end of this same month, I have some cash, this is not a bankrupcy case. Anyway, knowing that I'm not gonna be kicked out of the game is a relief ;)


Air Elbonia is always the angel, so I will be the evil (http://smileys.smileycentral.com/cat/36/36_1_15.gif).

Say the bankrupt script is run randomly, each game day (real life hour) would have 1/24 chance that the script would be run in. For every 24 days, you would qualify as an account to be banktuped by the script for 19 days. Combine the two, your chance of getting bankrupt is roughly 19/24, which is nearly 79.1%. As a result, I would not say that you are not gonna be kicked out. Chances are you will be resetted one of these days. Don't say that you aren't warned :wink:
Title: Bancruptcy question
Post by: Gustavo on December 12, 2007, 05:10:17 am
cmon, don't be so bad. run the script every 24th day, and give the leasers the chance to have fun too. ;)
Title: Bancruptcy question
Post by: dktc on December 12, 2007, 05:13:29 am
I am not the one running the script (although I may just "accidentally" click that button on 1st of a month (http://smileys.smileycentral.com/cat/15_1_60.gif)). :P
Title: Bancruptcy question
Post by: Air Elbonia on December 12, 2007, 05:16:22 am
Quote from: "Gustavo"
About the leases, yes, they're making some money. counting (daily profit) - (gate rent + plane lease), remains some money in the box. as I told before, it's a hard competition, hard to get bigger from this point of the game. hard but enjoyable.


I meant there may be a stray lease by itself that isn't earning its keep of its present routes... but yes. by all means enjoy the game [reasonably] as you see fit.

ignore dex, he's just being scary.  the randomness is at present not tied to any regular cycle.
Title: Bancruptcy question
Post by: dktc on December 12, 2007, 05:45:40 am
Quote from: "Air Elbonia"
ignore dex, he's just being scary.  the randomness is at present not tied to any regular cycle.


Nah... the randomness is exactly what I am trying to illustrate here. Who knows? Stephen might click on the button on the 24th or he might do it half an hour later on the 1st because we keep chatting with him on gtalk :wink:
Title: Bancruptcy question
Post by: pseudoswede on December 12, 2007, 06:33:23 am
Once you automate the script, I'd like to recommend that it runs at a random time every game month. That way, we don't have the gate renting frenzy at the month change.
Title: Bancruptcy question
Post by: StephenM on December 12, 2007, 09:11:15 am
The script has not been run regularly enough (Bankruptcy for less than €0 value) because it is still being tested.
Title: Bancruptcy question
Post by: Gustavo on December 12, 2007, 02:59:27 pm
Again, I insist: that's not fair. If I earn money enough to pay my dues and, in the end of the month, I still have cash, I'm not a banckruptcy case.

Besides, if it was going to work this way, then it should be working this way since the beginning of the game. I, for example, started to play like this, the game accepted. if the game accepted, I, obviously thought that it would always accept. Everybody would. If this bankruptcy system is about to change, it shouldn't even get started. it should start the way it was supposed to be. Negative companies in the beginning of the month, but profitable in the end of it, should go bankrupty in the fist month game. Changing it now means changing the rules after the start. Again: not fair.
Title: Bancruptcy question
Post by: Jps on December 12, 2007, 03:01:24 pm
Say that again? The first day was more terrible... only one plane you could have. 500.000 cash... dc-3 for leasing on market for half value (2.400.000)  :roll:

At least they made profit  :lol:
Title: Bancruptcy question
Post by: dktc on December 12, 2007, 03:09:27 pm
Quote from: "Gustavo"
Again, I insist: that's not fair. If I earn money enough to pay my dues and, in the end of the month, I still have cash, I'm not a banckruptcy case.

Besides, if it was going to work this way, then it would be working this way since the beginning of the game. I, for example, started to play like this, the game accepted. if the game accepted, I, obviously thought that it would always accept. Everybody would. If this bankruptcy system is about to change, it shouldn't even get started. it should start the way it was supposed to be. Negative companies in the beginning of the month, but profitable in the end of it, should go bankrupty in the fist month game. Changing it now means changing the rules after the start. Again: not fair.


I would say fair. In real life, you get bankrupt if you can't hand out cash. You don't even have to be in negative networth to get sued and the assets auctioned off. So, it is more than fair to bankrupt airlines with negative networth. That just isn't how businesses work. :wink:

Think about it though; if you stop leasing new planes, you would no longer get into negative in a few game months (if your airline is as "profitable" as you claim it to be) :wink:
Title: Bancruptcy question
Post by: Jps on December 13, 2007, 08:46:55 am
I remember putting 70 DC-3's at 1.800.000... Got all leased within an hour...

 :lol: