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Online Airline Management Simulation
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Author Topic: Large and small plane costs  (Read 1869 times)

DenisG

  • Former member
Large and small plane costs
« on: June 10, 2009, 04:41:48 AM »
Hi guys,

again me with another question:

I am currently flying a few very short routes (around 100nm) with pax demands around 50 per day with a DHC-7. I am thinking of allocating the DHC-7s to stronger routes and replacing them with one small plane that would go the round twice a day (e.g. Saab 340, Embraer, DHC-8, etc.). The advantage of going twice a day with a smaller plane is that I could offer two connecting flights from the target airport, making one plane offer 3 different routes per day, offering undisputed routes and image strength at small airport. Now, I have no idea of how much the variable costs per plane like navigation and airport fees change due to plane size and whether that can at all be profitable. Before I order, I thought to ask first. I have to fly out of Frankfurt and I guess the costs are comparably high there. Thanks for your advice!

Denis

dG Airlines

Offline Sigma

  • Members
  • Posts: 1920
Re: Large and small plane costs
« Reply #1 on: June 10, 2009, 04:44:18 AM »
In this game, bigger is virtually always better.  Small planes simply require costs too similar to much larger ones.  If you've got the economics down flying tiny planes you can make it work with bigger ones.  All your costs won't scale nearly as fast as your revenue will increase.

Many costs will scale with your routes though (most of your staffing for example, marketing, etc).  So if you double your routes a lot of your costs will double.  But if you're making twice the revenue and not doubling your variable operating costs, then you'll still net more money.

DenisG

  • Former member
Re: Large and small plane costs
« Reply #2 on: June 10, 2009, 04:51:18 AM »
Thanks for your quick answer! Too bad, though, I really had a crush on these EMB-120s...   :-[

Denis

 

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