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Author Topic: I'm Not sure how I am still losing money  (Read 1414 times)

tylerrr

  • Former member
I'm Not sure how I am still losing money
« on: November 21, 2009, 04:36:34 AM »
Ok; well I have gone bankrupt many times and this time im trying to stay out of forcing my self to do it; my current airline seems to always be losing money. Even though im only operating one 737-200 that is only 300,00 about a month.

I'm doing one route out of Pittsburgh to Tampa; then to Baltimore and the load factor is 80 percent; with a profit of almost 11,000 a day.

Like I said I have no idea to stay in; did I do the right thing of my idea's or did I make a bad idea?

thomaskjr

  • Former member
Re: I'm Not sure how I am still losing money
« Reply #1 on: December 08, 2009, 04:39:51 PM »
I sure wish someone would reply to your post, because I'm in the SAME SITUATION.  Have bankrupted two times already, tried ERJ then MD80, back to ERJ...one route and even when my load factor is high, it is impossible to make money.  Should I be cutting payroll, perhaps?  I've already eliminated CEO pay...what next???

Offline Sami

  • Administrator
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  • Posts: 14540
    • AirwaySim - Are you the next Richard Branson?
Re: I'm Not sure how I am still losing money
« Reply #2 on: December 08, 2009, 05:09:00 PM »
well, looking at your airline Thomas.. You have only a single ERJ in operation. You cannot make money with ONE aircraft, as you have so many fixed costs in the company. Also your airline is only 2-3 weeks old - "nobody" knows about it yet, all routes are new, company is unknown etc. You really cannot expect to make huge sums right after the first flight takes to the skies.

However more alarming is that the aircraft itself is even making losses even before all the fixed costs like marketing and staff. If you look at the scheduling page you see that you are running only a single 4 hour flight on an aircraft that is capable of flying 24hrs each day. So that's your problem .. ;)

thomaskjr

  • Former member
Re: I'm Not sure how I am still losing money
« Reply #3 on: December 09, 2009, 12:21:48 PM »
Thanks Sami...took your advice ( I think! ).  Since I am the only carrier on the route, I added two more flights on same route and have ordered a second A/C and plan to add even more flights to same route for now.  Sound like a good start?

Offline Sami

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  • Posts: 14540
    • AirwaySim - Are you the next Richard Branson?
Re: I'm Not sure how I am still losing money
« Reply #4 on: December 09, 2009, 12:45:03 PM »
here's how my scheduling page looks ... more blue the better :P


Offline TommyC81

  • Members
  • Posts: 62
Re: I'm Not sure how I am still losing money
« Reply #5 on: December 10, 2009, 08:12:54 PM »
Blue it is...  :)

 

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