Subsidies

[POTKC]

Old thread, but I got reminded of it by the new issue tracker post. Some suggestions on how this may work:

1. There should be a startup fee + extra fees, of course for starting in a new country is an example, but also contract negotiations and other miscellaneous items such as creating new infrastructure.
   
2. There should not be a limit to how much the parent airline can invest if the subsidiary is based in the same country as the parent. There is no reason for this.
   
3. If the subsidiary is in a different country, a minimum of 51% of the initial startup capital has to be provided with loans, or even investment from other airlines if that is possible (would be an interesting option but not sure if everyone agrees). This would simulate the regulations in most countries that airlines cannot be owned over 49% by a foreign investor.
   
4. Aircraft should be able to be transferred from the parent to the subsidiary (and back, if necessary), either in return for payment of any sum (that you can choose) or for free, but in both cases a small fee (maximum of a million probably) should be applied. There is no need for going overboard and putting the fee at like 20% of the aircraft's value.
   
5. There should, of course, be rules for capital transfers between the companies: There has to be a limit on how much the parent can transfer to the subsidiary in one go. Subsidiaries should be able to transfer unlimited amounts back to the parents - perhaps there can even be a way to send some percentage of bank balance at the end of each week/month automatically, or assign a percentage of the profit from each flight to be counted as an extra cost in addition to fuel, maintenance, etc and be sent to the parent company.
   
6. Credit rating of the subsidiary should be independent of the parent. The parent company's credit rating should be slightly influenced by the credit rating of the subsidiary, so if the subsidiary is at CCC, it pulls down the rating of the parent slightly.
   
7. I am not sure how transferring leased aircraft between companies would work. Since that is both dependent on the credit rating and influences in, it might get too complicated.