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Author Topic: Failing airlines that sit...  (Read 2377 times)

Offline swiftus27

  • Members
  • Posts: 4395
Failing airlines that sit...
« on: January 30, 2010, 06:18:42 PM »
Got one on my LAX - LAS route.  Put a TON of DC3s on the route and is over a million in the red.   He put 150% of total demand and no other lines at all. 

We need to get these airlines out of the game (and other games) faster than this.  You can't come back, there's simply no way.   Why hurt other airlines that are trying to make it?

If you are not going to make it, leave the game or just close your airline.
« Last Edit: January 30, 2010, 06:20:48 PM by swiftus27 »

jchaves

  • Former member
Re: Failing airlines that sit...
« Reply #1 on: January 30, 2010, 07:01:44 PM »
Got one on my LAX - LAS route.  Put a TON of DC3s on the route and is over a million in the red.   He put 150% of total demand and no other lines at all.  

We need to get these airlines out of the game (and other games) faster than this.  You can't come back, there's simply no way.   Why hurt other airlines that are trying to make it?

If you are not going to make it, leave the game or just close your airline.

 :) some people would say that it's competition. I think that there is also a lack of understanding that competition is not just killing (and suicide) price wars and over filling routes.

Offline Sigma

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  • Posts: 1920
Re: Failing airlines that sit...
« Reply #2 on: January 30, 2010, 08:00:52 PM »
Um, that's perfectly good business.

Since the planes are running at 50%+ empty, you have to put 150% (or a lot more) capacity in order to actually capture the full demand.

Only flying one route is the surefire way to high profitability.  Since so many overhead costs are related to the number of routes you have, flying (and dominating) a single route is a way to highly maximize one's profitability and a great way to get CI up in a hurry since your Marketing costs in particular are very low.  This is a strategy that many of the most successful players in the game use.

And a million in the red?  So?  I've been as much as $4M in the red in this game -- I'm also making about $1M/week in profit thesedays too.  It's called loans; you know the game enough to understand that.  The guy probably borrowed money to buy that "ton" of DC3s.

I've got planes flying at 10% LF that yield a gross profit.  The only way to lose money in this scenario is to buy planes and then not put them on a route, because you put them on a route, any route, and they will make you money.

If the guy is truly sitting at a negative cash situation and/or his value position slides into the -$2M range (i.e. negative cash flow), then he'll quickly start missing C-Checks and it'll be all over from there for him in relatively short order.
« Last Edit: January 30, 2010, 08:06:23 PM by Sigma »

Offline swiftus27

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Re: Failing airlines that sit...
« Reply #3 on: January 30, 2010, 10:51:21 PM »
I may have to call NOOB here but the guy is DEEEEPLY in debt (almost 2 million).    There WAS a 210 demand between KLAS and KLAX daily which I had used 110% on.    He put 376 seats daily using DC3s on only that route.   

There is no chance of him making it and he is in other games.  Just quit if you aren't going to try. 

Offline LemonButt

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Re: Failing airlines that sit...
« Reply #4 on: January 31, 2010, 04:11:44 PM »
Everyone is "deep in debt" starting off though.  It is very likely he is turning a profit even though he is in debt.  I just checked and there are 8 airlines that are at least $1 million in debt.  Also, there is more than 1 city you can fly to out of LAX :)  Why not put your planes on a less competitive route until the other airline crumbles?

Offline swiftus27

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  • Posts: 4395
Re: Failing airlines that sit...
« Reply #5 on: January 31, 2010, 07:28:28 PM »
I am in LAS... I have pretty much every route I could before my 377s roll in.

Offline AlistairS

  • Members
  • Posts: 254
Re: Failing airlines that sit...
« Reply #6 on: February 02, 2010, 03:37:38 AM »
I was a million plus in the red and was still generating cash, I was using the cash for the used market and used a sizeable loan to get new aircraft, the issue is that the net airline worth as reported does not give any indication as to the cash flow of the airline.

jumbo Mouse

  • Former member
Re: Failing airlines that sit...
« Reply #7 on: February 03, 2010, 07:15:55 AM »
Hi

I do not agree to put a plane on any route, even though you may show a profit per day per route, trust me if the route is congested, the amount of money you spend on extra staff and maintainance you will not make a profit with that aircraft, best leave it on the ground, plus if you have marketing then your really screwed. If you have  a 10% load factor and show a small profit, the staff fee's dont show in ur aircraft prfit, so u do loose, big time!!! 8)

 

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