Airline Mogul Forum

Quick question on creating bases

hg42

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on: May 13, 2008, 11:34:01 pm
Actually, I guess I have two questions; I get that debt is usable for initial gate fees but not for aircraft purchases. But:

- Is there a limit to the amount of debt a company can take on?

- Can debt be used to finance the creation of bases?


Chavaquiah

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Reply #1 on: May 13, 2008, 11:45:00 pm
- About 10% of company value, if memory serves. That's how low you can go buying gates. At the start of the month, with maintenance costs deducted, you may actually dive well below that. It's just that below 10% (or whatever the value is) you can no longer rent more gates.

- No. To create a base, as to buy a plane, you must have enough cash on hand.


 

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