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Author Topic: No Profit :(  (Read 2449 times)

chunky25

  • Former member
No Profit :(
« on: January 25, 2010, 09:51:34 PM »
Hey Guys,

ive got a problem. Third try now. Based in KL, Malaysia. Doing LH flights to Sydney, Melbourne and Brisbane with DC8. Planes are quite full, econ to first. 28 to 100k profit per flight. Another 737-300 doing flights to mainly India and China. Also on profit around 6 to 17 k. Running company and route specific marketing but simply can't make profit. Always around 100k loss to maximum 30k profit per week.
What am I doing wrong? Is it my DC8 drinking too much fuel? Any ideas?

Thanks!
John

Offline TK1244

  • Members
  • Posts: 1245
Re: No Profit :(
« Reply #1 on: January 25, 2010, 11:39:51 PM »
How is your company image and route planning? If you have a low image (no marketing ads, many delays and/or cancelations) you may lose passengers. How is the load factor of your flight? If bad, look what the reason is or try to give discounts on your flight. And try to replace your aircraft with more efficient aircraft. I think there are better aircraft (more efficient per pax) available at the used aircraft market than the DC8. Old aircraft have high maintenance and fuel costs ;)

Good luck!
TK Regional

spbird007

  • Former member
Re: No Profit :(
« Reply #2 on: January 25, 2010, 11:51:36 PM »
If you are using DC8's in 1990 with fuel at $360 I think it will be pretty impossible to make any money. Try picking planes with a lower fuel burn.

chunky25

  • Former member
Re: No Profit :(
« Reply #3 on: January 26, 2010, 11:39:13 AM »
Thanks Guys!
Image and lf are good. Think its really the DC8 problem. Thing is, I dont have money to cancel the lease and the routes itself run outstanding. Any Ideas?

Offline TK1244

  • Members
  • Posts: 1245
Re: No Profit :(
« Reply #4 on: January 26, 2010, 06:08:33 PM »
My little brother had the same problem with his fleet of 51 aircraft, consisting of eight F27, 37 F28, two F50, two F100 and two 752 aircraft, finally the high maintenance costs of the old Fokkers and C-checks killed him. Best option is to restart your airline. Even if your lease expires, you will not have enough money to lease new/used planes. :(
Anyone else better ideas?
TK Regional

chunky25

  • Former member
Re: No Profit :(
« Reply #5 on: January 27, 2010, 11:46:53 AM »
I did so...Closed down my baby  :'(
This time trying my best from Mumbai with an MD83..at least a bit better in fuel efficiency.

knutm1980

  • Former member
Re: No Profit :(
« Reply #6 on: January 27, 2010, 11:57:27 AM »
Well, as with any business, you have to cover your overhead. Raising ticket prices to generate more cash per passenger. This might influence LF negatively of course. Alternatively, try an all economy configuration to cram more people on your planes.

But with little spare cash, I guess it's a downward spiral.  :'(


Offline TK1244

  • Members
  • Posts: 1245
Re: No Profit :(
« Reply #7 on: January 27, 2010, 02:21:02 PM »
I did so...Closed down my baby  :'(
This time trying my best from Mumbai with an MD83..at least a bit better in fuel efficiency.
Good luck, hope you will have a profitable airline now ;)
TK Regional

chunky25

  • Former member
Re: No Profit :(
« Reply #8 on: January 27, 2010, 07:19:06 PM »
Thx. Found a few gaps. ;D

Hwoarang

  • Former member
Re: No Profit :(
« Reply #9 on: January 27, 2010, 09:05:01 PM »
nice, its always good to have some gaps to build your company image before you compete with the big guys. But I must say, I see many of them going bankrupt. Any idea why? Grown to the maximum capacity of their airport?

ucfknightryan

  • Former member
Re: No Profit :(
« Reply #10 on: January 28, 2010, 03:59:06 AM »
Fuel costs is my bet for most of the recent ones.  A number of my routes that were profitable at ~$275 fuel turned into loss makers even with high load factors at ~$425 fuel, esp. if you didn't adjust the pricing.  If you don't log in for a few days while that's happening it can kill you fast.

chunky25

  • Former member
Re: No Profit :(
« Reply #11 on: January 29, 2010, 07:47:37 PM »
It works. 2 MD 83 and one Fokker 50 from Bombay. Generating a nice weekly profit  :)

Offline TK1244

  • Members
  • Posts: 1245
Re: No Profit :(
« Reply #12 on: January 29, 2010, 10:24:58 PM »
nice to hear that :D
TK Regional

 

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