Extremely Low Load Factors
swiftus27:
yes the plane will produce a gross profit... you need to make a net profit. Those profits need to cover your fixed costs too.
Sigma:
Yeah, but even with 2 C-46s running less than half full, I'm running at break-even and that's with a substantial Marketing initiative -- 50% of my total revenues. if I cut my Marketing in half, which would still be sufficient to get it to grow, I'd be netting a 25% net profit margin. And with more planes capitalizing on economies of scale, I'm quite certain profits in this era will dwarf even the staggeringly unrealistic ones we see in AWS' later eras. Especially once they start actually filling up the planes.
Maarten Otto:
CI = 21 and dropped fares by 40%... still I get a 50% load factor, and I am operating the route 6 times a day.
sami:
The old planes combined w/ long flight times (slow planes) may cause this.. as that really hasn't been ever tested properly. Have to check that.
swiftus27:
"Long Times" shouldnt be an issue because all of my flights are under 2 hours.
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