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Author Topic: Nav Fees  (Read 891 times)

Benz

  • Former member
Nav Fees
« on: May 07, 2010, 02:34:34 AM »
What's the deal with Nav Fees.  I was consistently running just over a $100,000 on fees each week.  I leased an aircraft and was playing around planning new routes for it and when I finally worked out the schedule, I had a $700,000 Nav charge.  I didn't have the aircraft delivered yet and no additional flights were performed.  This had happened to me before.

What's up with that?

Offline NorgeFly

  • Members
  • Posts: 3652
Re: Nav Fees
« Reply #1 on: May 07, 2010, 02:36:01 AM »
Setting up new routes incurs slot acquisition costs which are included in Navigation fees.

Benz

  • Former member
Re: Nav Fees
« Reply #2 on: May 07, 2010, 03:54:50 AM »
This much while still in the planing stage?

Offline CVACEO

  • Members
  • Posts: 601
Re: Nav Fees
« Reply #3 on: May 07, 2010, 03:56:45 AM »
When you hit the "Confirm" button you need to be sure it's the schedule you want for that particular flight.  Slot fees (which are included in Navigation fees in your Income Statement) are shown on the page before you confirm it.  If you just set up routes willy-nilly and then find they don't work when you go to schedule a plane for them, any changes you have to make are subject to additional slot fee charges.  You need to work out your schedule before you confirm new routes or it will cost you a fortune, as you now know.

Offline Sigma

  • Members
  • Posts: 1920
Re: Nav Fees
« Reply #4 on: May 07, 2010, 04:40:13 AM »
When you finally worked out a schedule and confirmed all those flights, you bought all those slots.  That's an upfront cost that you incur before you ever start flying the route.  There should be a WHOLE LOT more than there are really.  You also hired all the necessary people to operate those routes as well, which you will need to pay for the next couple weeks before your plane starts operating on it.

One thing you can do in the future is wait until you actually receive the plane to schedule the route.  That doesn't mitigate the upfront slot purchase cost, but it saves you a couple weeks extra salary.

Offline CVACEO

  • Members
  • Posts: 601
Re: Nav Fees
« Reply #5 on: May 07, 2010, 12:52:31 PM »
Just to clarify what Sigma was saying ... when you confirm the flight you pay for the slot fees.  You start incurring staff -and- marketing costs the moment you assign the flight to an a/c - whether or not the a/c has been delivered yet.

Benz

  • Former member
Re: Nav Fees
« Reply #6 on: May 07, 2010, 02:23:46 PM »
Thanks for the info.

orionmco

  • Former member
Re: Nav Fees
« Reply #7 on: May 08, 2010, 06:37:28 AM »
I learned this the hard way.  You really need to sit down and plan things out in a spreadsheet or on paper first.  I would plan a flight and then realize that the subsequent flights took up too much time so I would move everything this way or that not realizing how much I was spending to do so *embarrassed*

Offline Sigma

  • Members
  • Posts: 1920
Re: Nav Fees
« Reply #8 on: May 08, 2010, 06:47:58 AM »
I learned this the hard way.  You really need to sit down and plan things out in a spreadsheet or on paper first.  I would plan a flight and then realize that the subsequent flights took up too much time so I would move everything this way or that not realizing how much I was spending to do so *embarrassed*

I do this with various browser tabs.

The first tab is always the "Schedule" screen.
The second tab is the "Open New Route" screen that lists all the destinations.

And then whenever I find a route I want to open, I open a new tab for each destination.

Then I work left to right across the tabs as the flights progress per day.  That way, if I get to the last tab (be it the 2nd, 3rd, 4th flight, whatever it may be that I can fit in a day) and it won't fit, I just go to the other tabs and tweak the turnaround time in order to get everything to fit.

And then ONLY when everything fits, I submit all the flights.  Then I go to the Schedule tab and add them all onto the respective plane.  When everything's scheduled up without error, I delete all those flight tabs (don't delete them before, so you can easily Edit them if you made a mistake since they're still right there on the tab), then repeat the process for the next plane.

 

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