Couple of Questions

zkvac · **on:** November 04, 2007, 07:28:09 am

Hey,
1) If a gate costs $50,000, is that the monthly rental, or a one off payment?
2) Also the same question for leasing aircraft. I leased a DC-3 for 999 months, and I think it was around $1 million. Does this mean I pay $1 million a month, or only once?
I was just wondering as I am making $90,000 a day with two DC-3's fully utilized, in the morning I had about $300,000 cash and I came back from school and I was about $1million in debt.
Tom

Simius · **Reply #1 on:** November 04, 2007, 07:29:12 am

They are both monthly fees. You get charged that amount up front and then again on the first of every month.

Jps · **Reply #2 on:** November 04, 2007, 07:30:04 am

Quote from: "zkvac"

Hey,
1) If a gate costs $50,000, is that the monthly rental, or a one off payment?
2) Also the same question for leasing aircraft. I leased a DC-3 for 999 months, and I think it was around $1 million. Does this mean I pay $1 million a month, or only once?
I was just wondering as I am making $90,000 a day with two DC-3's fully utilized, in the morning I had about $300,000 cash and I came back from school and I was about $1million in debt.
Tom

1. Monthly rental
2. monthly... in the market there's loads leasing out for 300.000 per month
3. See your Operations Dep. It's probably your gates/leases

zkvac · **Reply #3 on:** November 04, 2007, 07:50:28 am

Damn..
Ok then is it possible to return a leased aircraft before the lease ends? Or am I stuck with a rip-off DC-3 for the rest of the game?

blumage · **Reply #4 on:** November 04, 2007, 07:55:12 am

What? You leased a dc3 for 1M?? :shock: :shock:

Jps · **Reply #5 on:** November 04, 2007, 07:56:51 am

Quote from: "zkvac"

Damn..
Ok then is it possible to return a leased aircraft before the lease ends? Or am I stuck with a rip-off DC-3 for the rest of the game?

You can return the aircraft whenever you want.

zkvac · **Reply #6 on:** November 04, 2007, 08:44:39 am

Sorry, I got that wrong

I checked and it's $400,000. I wont return it as shes earning 50 grand a day.

Jps · **Reply #7 on:** November 04, 2007, 09:08:51 am

ron.zagreb · **Reply #8 on:** November 04, 2007, 07:07:28 pm

the same thing happen to me

i want to know is it better to hold on with wholly-owned aircraft and wait until the money is enough to buy new aircraft or lease some and maximize DOP??? Because now i leased 4 DC-3 at various rates, and every month i got a big surpr ise waiting for me

dktc · **Reply #9 on:** November 04, 2007, 07:21:02 pm

Quote from: "ron.zagreb"

the same thing happen to me

i want to know is it better to hold on with wholly-owned aircraft and wait until the money is enough to buy new aircraft or lease some and maximize DOP??? Because now i leased 4 DC-3 at various rates, and every month i got a big surpr ise waiting for me

You need to conduct a Time-Value-Money analysis yourself. Every business is different so it is hard to say which is better. You also need to consider other factors such as how frequently you would switch your planes (like start a route with V-1, then DC-3, then 4-0-4,... then R6V

, all on the same route), and the salvage value (the value a plane could be sold for) when you want to get rid of it.

Very generally speaking though, if you would hold onto that plane for long and isn't planning on switching planes, leasing would proof more profitable (except when you lease the plane at 50% list price... that is just stupid).

AlleyCat67 · **Reply #10 on:** November 04, 2007, 07:26:58 pm

Except for one time, I've always purchased my aircraft outright. That one exception was when I leased a Bellanca Aircruiser while I was waiting for the one I had ordered to come in. That strategy has worked for me thus far.... other airlines are far outpacing me in DOP and growth but I'm satisfied with my progress thus far, considering that I just started playing about 3 weeks ago. In that time I've gone from Bellanca Aircruisers and DC-3's to DC-6B's and Martin 2-0-2's; I have another DC-6B and two Curtis CW-20's on order now. I expect that within another week or two, if my current growth continues, I will be able to start ordering Connies and other long-haul aircraft, and put my shorter-haul planes up for lease like I've done with some of my Bellancas. (The ones that I had sitting idle as they were replaced with other aircraft.) While they don't earn me any vast fortune, at least they're doing somebody some good and giving me a little extra income on the side.

The trick is, find a strategy that works consistently to earn you a profit. Then from there you can try new things... keep what works, scrap what doesn't.

ALFC · **Reply #11 on:** November 04, 2007, 08:25:04 pm

Quote from: "AlleyCat67"

The trick is, find a strategy that works consistently to earn you a profit. Then from there you can try new things... keep what works, scrap what doesn't.

the trick is, dont think about longhaul till you are gazillionaire

zkvac · **Reply #12 on:** November 05, 2007, 06:32:54 am

Hmm.. I'm stuck. I am spending nearly 2 million on gates each month, with most only utilised 10-30%. I cant do any more flights to/from them for two reasons.
1) I would be competing against myself
2) I can't afford any more aircraft for the moment. What do you guys think I should do?

MrOrange · **Reply #13 on:** November 05, 2007, 11:01:36 am

Quote from: "zkvac"

Hmm.. I'm stuck. I am spending nearly 2 million on gates each month, with most only utilised 10-30%. I cant do any more flights to/from them for two reasons.
1) I would be competing against myself
2) I can't afford any more aircraft for the moment. What do you guys think I should do?

2 million is not that much. You have to wait until you can afford a small, but reasonable airplane around the €8M mark, and then fly some routes on it that can guarantee you a nice profit. Low competition, preferably low distance, low frequency. That should give you at least a good start.

Jps · **Reply #14 on:** November 05, 2007, 11:49:40 am

Quote from: "zkvac"

Hmm.. I'm stuck. I am spending nearly 2 million on gates each month, with most only utilised 10-30%. I cant do any more flights to/from them for two reasons.
1) I would be competing against myself
2) I can't afford any more aircraft for the moment. What do you guys think I should do?

Return your gates... wait till you get more money... lease from green for cheap prices