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Online Airline Management Simulation
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Author Topic: what would be the ultimate indicator of airline success?  (Read 2246 times)

Offline Andriy

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what would be the ultimate indicator of airline success?
« on: October 05, 2009, 05:18:51 PM »
I wonder what would be the ultimate measure of airline success in this game?
In "Airlines Statistics" screen there are several measures - but could you really view any of them as superior to others? Would it make sence to have some kind of overall rating where those indicators would be combined in one overall rating which would allow to directly compare airlines?

- Richest CEO: thats probably the most meaningless, just shows how much you are in love with yourself:)
- Profit margin: misleading, you would not put your margin in a bank... no relation to the scale of your airline at all
- Pre-tax income: probably the most meaningfull with one big drawback that it does not consider your market position development. One could be having nice profit milking current operations and not investing into new planes & routes
- Airline Value: has nothing to do with cash flow; large loans could make it negative while having totally healthy cash generating airlines
- Transported Passenger: shows your scale but than you might not make any money on it...
The other three (avg age, price and utilization) are purely technical in nature

Any views on this?

 

Talentz

  • Former member
Re: what would be the ultimate indicator of airline success?
« Reply #1 on: October 05, 2009, 05:30:48 PM »
Use a combination of things.


Pre-tax to figure out how much they make. Airline value to see if they have cash on hand. Aircraft ordered to see if they are growing or have spent alot of money recently (thus the reason why there pre-tax is way off.)


There are a few more ways to judge the health of an airline, but that is usually what I look at.



Talentz

Online Sami

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    • AirwaySim - Are you the next Richard Branson?
Re: what would be the ultimate indicator of airline success?
« Reply #2 on: October 05, 2009, 06:39:06 PM »
We've been thinking of this in the past too and in feature req's forum you can find something about this ("game score"?).

Offline hershey1

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Re: what would be the ultimate indicator of airline success?
« Reply #3 on: October 07, 2009, 03:09:13 PM »
how about load factors that is a big thing right now in the news papers
Avail seats miles ratio to pax flown miles

Offline ChrisA330

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Re: what would be the ultimate indicator of airline success?
« Reply #4 on: October 07, 2009, 08:12:17 PM »
RASM/CASM figures would be a good indicator...also a helpful planning tool  ;-)

Load Factors are over-hyped.  I can get 100% loads offering a 50% discount on my fares...but it doesn't mean I'm making any money.

Offline swiftus27

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Re: what would be the ultimate indicator of airline success?
« Reply #5 on: October 10, 2009, 10:22:59 PM »
Ill give you a good example.   In ATB2 I have an airline where I own almost all of my planes.  I am not an international airline at all and am only making fair money.  My fleet is almost all my own and have little expenses.  That alone should be some measure of success.

Offline Gaius Marius

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Re: what would be the ultimate indicator of airline success?
« Reply #6 on: November 08, 2009, 09:00:15 PM »
Ill give you a good example.   In ATB2 I have an airline where I own almost all of my planes.  I am not an international airline at all and am only making fair money.  My fleet is almost all my own and have little expenses.  That alone should be some measure of success.

It this really a good measure of success?  You are successful in controlling costs and have operational discipline but the return on the investment in your capital seems low by your above statement. 

It is kind of humerous that we (including me) have spent a lot of electrons discussing what a definitive metric for success is (in AWS).  After all, this is a game ... and we don't know how to win it!  I think this a tribute to the entertainment value of this simulation. 

I think what we need to decide is what success is (besides health, happiness, and inner beauty!).  For me, success is taking $4.5 million and turning it into $4.5 billion or $45 billion if you're LaChung.  Any thoughts?


Gaius Marius
"Flying is learning how to throw yourself at the ground and miss"

Offline Brockster

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Re: what would be the ultimate indicator of airline success?
« Reply #7 on: November 08, 2009, 10:49:51 PM »
Or Diamond Air in ATB2... He passed the 100b mark a while ago and keeps going up.  :o

Offline Dasha

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Re: what would be the ultimate indicator of airline success?
« Reply #8 on: November 10, 2009, 08:34:06 AM »
Ill give you a good example.   In ATB2 I have an airline where I own almost all of my planes.  I am not an international airline at all and am only making fair money.  My fleet is almost all my own and have little expenses.  That alone should be some measure of success.


I agree with this.

Any prehistoric baboon can get a very big airline from an airport as LHR or ATL. I've been on quite a few large airports, Istanbul and now Washington DC but I never had as much fun as my small airline in Chennai, India. I owned all my planes, young planes and only flew domestic. Still I had one of the highest profit margins, the highest fleet utilization but logically I never reached the 9 digits. When the game ended I was on 300 million or something flying solely from Chennai and Bangalore to other domestic airports. For me that is the most succesful airline I have managed myself.

Diamond Air is on LHR, which is easy to grow from. All the biggest airlines in the game are based at big airports and they always top the list but I very much doubt if they really are the best airlines out there.
The people who cast the votes decide nothing. The people who count the votes, decide everything

Offline Gaius Marius

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Re: what would be the ultimate indicator of airline success?
« Reply #9 on: November 11, 2009, 02:52:38 AM »
Any prehistoric baboon can get a very big airline from an airport as LHR or ATL. I've been on quite a few large airports, Istanbul and now Washington DC but I never had as much fun as my small airline in Chennai, India. I owned all my planes, young planes and only flew domestic. Still I had one of the highest profit margins, the highest fleet utilization but logically I never reached the 9 digits. When the game ended I was on 300 million or something flying solely from Chennai and Bangalore to other domestic airports. For me that is the most succesful airline I have managed myself.

Diamond Air is on LHR, which is easy to grow from. All the biggest airlines in the game are based at big airports and they always top the list but I very much doubt if they really are the best airlines out there.

Actually, I've run a top 5 airline out of Singapore and it was a big challenge.  It is not that simple to grow an airline as big as Diamond no matter where you are located.  I've tried to replicate my previous success and have gone bankrupt 6 times trying.  I have to respect the big guys who do it repeatedly.  Secondly, I agree that it can be more fun/less stressful to run a small airline but "fun" isn't a measure of success that we can use.  The fact is we all start with $4.5 million.  Some use that money to multiply it a few times and some use it to multiply it a thousand or more times.  Return on investment (ROI) does not mean a large airline (by value) is better, it just means it is a better investment.  As a measure of success, ROI is easier and more logical to use.  Bottom line is that those virtual grandmas and grandpas that invested with us at the beginning can afford their hip replacements if they invested with Chang or Diamond.  If they invested with me (or you) they will be lucky if they will be able to buy denture cream.

GM
« Last Edit: November 11, 2009, 02:55:45 AM by Gaius Marius »
"Flying is learning how to throw yourself at the ground and miss"

Offline Name_Omitted

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Re: what would be the ultimate indicator of airline success?
« Reply #10 on: December 06, 2009, 05:09:28 PM »
"Is the player having a good time?"

Offline Unbornio

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Re: what would be the ultimate indicator of airline success?
« Reply #11 on: December 07, 2009, 04:55:30 AM »
"Is the player having a good time?"

Best one ever.  ;D
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