LOANS!!!!

tsb · Post by **tsb** » Fri Nov 25, 2005 7:15 pm

Basically you could get bank loans with 5% APR's and also airlines should be able to hire aircraft off other airlines for a decided APR!

recce · Post by **recce** » Fri Nov 25, 2005 8:47 pm

all those in agreement say I!

I!

ricchio · Post by **ricchio** » Fri Nov 25, 2005 9:31 pm

Loaning aircraft sounds great. Especially since there are a ton of airlines that wish to do longhaul for example, but the aircraft is out of there reach/budget.

Ciao,
Aaron

HyperionAirways · Post by **HyperionAirways** » Sat Nov 26, 2005 1:33 am

Eh, loans are okay, but it also means that an airline could potentially run completely in the red, regularly borrowing enough cash to keep going. I always viewed that initial $25M as a loan of sorts...I'll give it an "I" as long as there's a way to keep people from borrowing ridiculous amounts of money for a losing venture.

Also, now that I think about it, what's to stop you from taking 40 billion in loans on your startup, so you can create a fleet of all 777s??

What about this? What if in order to get a loan, you've got to find a LENDER, in the form of another airline willing to invest in your company in return for a portion of the profits?

ricchio · Post by **ricchio** » Sat Nov 26, 2005 7:00 am

Not a bad idea.

Ciao,
Aaron

recce · Post by **recce** » Sat Nov 26, 2005 8:06 pm

Well obviously a bank isn't going to drop a 40B loan on some airline just starting. There would be limits of course. For instance nough to buy to large aircraft if you're a long haul carrier isn't a bad idea. 25M isn't enough to buy even 1 medium haul liner.

HyperionAirways · Post by **HyperionAirways** » Sun Nov 27, 2005 4:34 am

Right but investors would prevent people from just taking loans whenever they feel like it...or a credit rating even.

IMO, if you wanna buy a widebody, earn it.

ricchio · Post by **ricchio** » Sun Nov 27, 2005 6:43 am

correct

tsb · Post by **tsb** » Sun Nov 27, 2005 9:44 am

There should be things that the "banks" would think about:

Va Rep

Age

Money!

Also you should make it so we as VA's can start our own banks!

ricchio · Post by **ricchio** » Sun Nov 27, 2005 7:13 pm

hmm... starting our own, maybe.

Ciao,
Aaron

HyperionAirways · Post by **HyperionAirways** » Sun Nov 27, 2005 10:09 pm

Eh, starting our own might be tough. It would be similar to my suggestion of investing.

Think about it. What motivation do we, as airlines, have to succeed when every time we fail, we just have to click and bam...more money.

I still think investors would be the safest way to go, that way there's still motivation. No one will invest in an airline that isn't going to do something positive with the money.

And I'd imagine that it would be a relatively simple thing to enable. If I want to help Ricchio for example (although the reverse is more likely the scenario lol), all I'd have to do (after we agree on terms) is transfer him the money from my account to his. Pretty straight forward.

Just my two cents. lol