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Author Topic: can anyone help?  (Read 1781 times)

Offline TranceAvia

  • Members
  • Posts: 440
can anyone help?
« on: August 23, 2009, 04:17:49 PM »
hi all,

i have started god knows how many airlines now, and had only sucess with 2, my all 737-200 airline based out of San Jose in Boom 1 and my mixed bag from o'hare in boom 2, now here i am with my 2nd attempt at getting somewhere from toronto in jet age 3. i first started with the convairs, but following advice here, i started again with a bigger fleet of Douglas 6's and 7's. The airline is called Maple Leaf International Airways, based at CYYZ. after a couple of weeks, i am already 700k in the red, and dropping nearly 100k (a week?).

can anyone help? suggestions?

Many thanks

Online freshmore

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  • Posts: 465
Re: can anyone help?
« Reply #1 on: August 23, 2009, 10:34:13 PM »
go for routes with demand but little competitiom tht waty pax h only ur airline

DenisG

  • Former member
Re: can anyone help?
« Reply #2 on: August 24, 2009, 07:33:45 PM »
Yes. secure uncompeted routes with appropriately seated aircrafts and then expand slowly.
Denis

Offline powi

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  • Posts: 435
Re: can anyone help?
« Reply #3 on: August 25, 2009, 06:21:06 AM »
Why everyone always say expand slowly? Several times expanding rapidly has been the only thing to keep me in the business. But don't expand stupidly because you want expand rapidly.



Talentz

  • Former member
Re: can anyone help?
« Reply #4 on: August 25, 2009, 07:02:48 AM »
Hello

What Powi says is correct. But I don't think that's the heart of the problem.


The issue to me would be your route choices. Yes, the majority of your routes are without competition. But, your avg route is very long for a T-prop.

I ask, how many flights per day does your DC-7s and 6s avg? 2.. maybe 3 from what I can tell. What if I told you my viscounts avg 4-5 routes per day. Thus, my profit potential is nearly double yours.

Sure, you make a profit flying 2 1000nm routes. But you can make twice that much flying four 250nm routes.

This is the reason your stalling. You had success in the beginning w/o paying leases. Four months later, that "extra" money is gone and you dont make enough to pay the bills. The reason you dont bring in enough income is because your T-props are flying long routes. Limiting the amount of routes you fly hurts the aircraft's profit potential.

In domestic/short haul international flying, it takes roughly 2 flights to "break even". Depending of course on the aircraft. Breaking even does not mean the little info that shows the "profit" an aircraft is making. It means paying for leases, fuel, fees, labor fleet common marketing ect. All your companies expenses.

After 2 routes, that generally turns into profit straight to the bottem line. Again, this all depends the aircraft you fly. So are better then others.


T-props are excellent up to about 400nm or so. After that, the lack of speed adds to flight time which then limits the amount of routes you can stuff into the aircraft.

More routes = greater profit potential. Generally, four routes will make more money then two routes. This really applies to domestic/short haul international were ticket prices are low and flying further only nets a few extra dollars per seat.

Longhaul is a different story, for another day  :)


Hopefully this helps

Talentz

Offline TranceAvia

  • Members
  • Posts: 440
Re: can anyone help?
« Reply #5 on: August 29, 2009, 07:18:24 PM »
thanks for the tips, i've adjiusted some routes, and things seem healthy until I can get some capital to replace the DC's. Things feel strong for now...

 

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