Reading the result and the cash

An airline can be profitable and still run out of money, and it can burn cash for a year while building something worth owning. The finance card on the operations screen has two tabs because those are two different questions.

The result: what flying earned

The result is built from departures that have landed and settled. Each one carries its own cost sheet, written when the flight was dispatched, so the breakdown is what actually happened rather than a model run afterwards.

The lines are:

Departures flown before cost sheets existed appear as one honest remainder line rather than being spread across the categories by guesswork.

Standing costs: what the airline owes

These are charged in the Monday settlement and belong to the company, not to any one flight, so they cannot be read out of a departure. They are shown as what they cost per week at your current setup:

The cash flow: what moved through the account

Every change to your balance is recorded with what caused it. This is where an aircraft purchase appears — it never touches the result, because you swapped cash for an asset of similar value, and yet it can empty the account in an afternoon.

Reading the two tabs against each other is the point:

The log keeps the last month. Anything older is discarded, because the interest in a cash movement is entirely in how recent it is.

Borrowing

The lending rate is a market. It wanders the way the fuel price does — a mean it drifts back towards, a floor and a ceiling — and the bank screen carries its history on the same chart the fuel market uses.

Your rate is three things added together:

  1. The market rate on the day you sign.
  2. A premium for how leveraged you already are. Borrowing against a company that is mostly debt costs more, which is the point.
  3. A premium for how long you fix it. Six months costs nothing extra, a year a little, two years more.

You may borrow up to 150% of equity. Interest runs from the moment you sign and comes off when your flights settle — there is no due date to miss, and sleeping players are never charged for time they did not play.

The term is a bet. When it expires the loan rolls at whatever the market rate is then, plus the same premiums. Fixing short is cheap and leaves you exposed; fixing long costs more and buys certainty. This is the same trade as a fuel contract, and it fails in the same way: cheap right up until the moment it is not.

Repaying before the term is up costs 1% of what you repay. After the term, it costs nothing.

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