Bancruptcy question

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...

StephenM · **Reply #1 on:** December 11, 2007, 08:31:29 pm

At the moment we have a three tier bankruptcy system.

If you feel your not doing well and want to restart, we do this manually on request.
If you are inactive for a period of 21 days (Outside of holiday mode) then you will be bankrupted automatically from tomorrow on. (No more big bankrupts
If you are under €0 value you will be bankrupted when that script is run, this one is not daily yet.

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.

AirHanoverInternational · **Reply #2 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

Gustavo · **Reply #3 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?

dktc · **Reply #4 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)

Gustavo · **Reply #5 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.

dktc · **Reply #6 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.

Gustavo · **Reply #7 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:

Air Elbonia · **Reply #8 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.

Gustavo · **Reply #9 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

) 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.

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.

suntoucher · **Reply #10 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.

dktc · **Reply #11 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

.

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:

Gustavo · **Reply #12 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.

dktc · **Reply #13 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

).

Air Elbonia · **Reply #14 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.