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Online Airline Management Simulation
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Author Topic: Um... Houston we have a problem...  (Read 2082 times)

ReedME

  • Former member
Um... Houston we have a problem...
« on: December 25, 2009, 12:44:00 PM »
I have quite a few new potential destinations which require very small aircraft (like a cessna or piper) but alas when I picked up my wad of cash and headed to the market I was met with the disappointment of a severe lack of these aircraft (the smallest was 17 seats and even that is too much) anyone know why there are no small aircraft?

ReedME

  • Former member
Re: Um... Houston we have a problem...
« Reply #1 on: December 25, 2009, 12:49:35 PM »
But not to worry I got some oldies, however It would be nice if I were able to buy NEW ones :)

Offline RushmoreAir

  • Members
  • Posts: 887
Re: Um... Houston we have a problem...
« Reply #2 on: December 25, 2009, 07:47:58 PM »
The extreme STOL aircraft (Dornier 228) burn the same (or less) amount of fuel per hour, supports twice as many people, and has the same runway requirement as all the pipers. The only negative is the range, which is less on the 228.

Offline Sigma

  • Members
  • Posts: 1920
Re: Um... Houston we have a problem...
« Reply #3 on: December 26, 2009, 01:38:20 AM »
You're better off avoiding them anyway.

Since the game has such high fixed costs for establishing a route, there's no way you'd ever turn a profit, or even close, on a route with so few passengers.  The salary and marketing costs would kill you.

ReedME

  • Former member
Re: Um... Houston we have a problem...
« Reply #4 on: December 26, 2009, 12:36:43 PM »
Hmm they seem to be profiting, its just I want to service as many airports as possible and I can't send anything bigger to these places due to poor pax demand but selling at 200% of recommended seems to work (providing there is no competition) :) Dornier was considered but i need more range than that Australia doesn't have a very large airport density

Offline Sigma

  • Members
  • Posts: 1920
Re: Um... Houston we have a problem...
« Reply #5 on: December 26, 2009, 02:42:24 PM »
They'll appear to be profitable on the Aircraft and Route screens, but neither of those screens takes into account any of the overhead.  They only consider the costs of the Fees, Fuel, and Crew, that's it.  Any costs related to hiring people at the destination, or additional overhead at corporate to support the additional routes/headcount, is not considered; nor are any marketing expenses (which scale in relation to the number of routes you operate).  If you figure in the increase you get in salary expense and marketing in addition to the other costs, they lose you money.

ReedME

  • Former member
Re: Um... Houston we have a problem...
« Reply #6 on: December 27, 2009, 01:43:55 AM »
hmmm, so a profit of ~15000 per week would not be deemed profitable, surely staff are not that expensive ?

DenisG

  • Former member
Re: Um... Houston we have a problem...
« Reply #7 on: December 27, 2009, 10:29:40 AM »
Hi ReedMe.

Flying props, especially small ones, is always a challenge in airwaysim. The displayed weekls profit is "profit after direct costs deduction" (ADCD profit). As Sigma explained, they lack the overhead costs of the company. In order to maintain an effective cash flow profit with these routes and planes, you should reach a weekly profit of around 100k USD with a 48 seater plane. That is based on est. 100,000 USD monthly lease fees. With smaller planes, as a rule of thumb, you can take the same basis and simply lower the lease costs accordingly. With an EMB-120 you will have est. 25,000 USD less in leasing fees per months, bringing your cash break even down to somewhere at around 80,000 USD per week, due to lower directs costs, route fees, etc. but also the plane itself.

You usually reach this by having your plane in the air a lot. Flying routes up to 300nm from your hub is one option. If destinations are further, you may try flying ABCBA-routes instead of AB-routes. However, it is much more difficult with small a/c like the EMB-120 than with the DHC-7 or the HS748 etc. If you succeed to fly four destinations per day from your hub with one a/c, you should be able to make a cash effective profit.

Other factors also impact significantly. Fuel prices can be felt at these thin margins very quickly. Take a look at the pikes in fuel prices during the last 12 game months.

Denis

ReedME

  • Former member
Re: Um... Houston we have a problem...
« Reply #8 on: December 27, 2009, 11:31:28 PM »
Yea I get what you're saying and I was looking for the challenge of expanding regionally, I did a way with monthly leases by purchasing the aircraft so thats that solved operating 4-5 routes per day so its looking to be profitable even with today's fuel price :) I think its allllll gooodddd :)

 

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