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Rules
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Cashflow and Bancrupcy
Cash availability is vital for your Airline. With cash you can purchase new aircrafts and make your fleet prosper, whereas with a negative balance your company will have to face some operational limits. A negative balance up to € -100.000 will still allow your Airline to purchase a new aircraft or to hire a pilot. A negative balance up to € -200.000 will still allow the Airline to purchase fuel at the ramp and pay the current expenses such as personnel salaries, installations and aircraft maintenance fees.
Interest on debt
A negative balance will be charge with a weekly interest of 5% that will be calculated on Sunday night based on the outstanding balance. For example, should your Company have on Sunday night an outstanding balance be of € -100.000 there will be a charge of € 5.000.
Bankruptcy
If the Airline outstanding balance exceeds the amount of € -200.000 there will be only 7 days to bring back the debt within that threshold otherwise the Airline will be forced into bankruptcy ! As a consequence the Airline will dissolve, aircraft and pilots will be put back on the market and data regarding flights, financial transactions and messages will be lost. Bankruptcy can be also be declared intentionally producing the same effects. However, in both cases a new Airline can be established starting from scratch (0 fuel, € 100.000 endowment) with a new name and base location without going through a new registration process.
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