Tips
karn39:
In case you have a competitor on that route and still want to compete, first research their schedule, what fleet they fly on this route. Secondly, look into competitor fleet info to see the fleet age. When all info are gathered, fly the route with newer and smaller plane but more frequent than your competitor. If the route demand are not fill up yet, you will gradually gain market share and when the competitor's bigger old plane get hurt in LF, they will look for another route than competing you. In case the route demand is already filled up with your competitor. You might get share harder but you still hurt their profit. They might put more schedule on the route to chase you out. So look carefully.
Thejug923:
Way off topic, but could someone possibly explain what fines you can get, like what they are for and how much they cost kind of thing. I can't seem to find anything on it.
Thanks,
Patrick - CEO Transworld Connection
Sigma:
The only fines you can get are for not doing your maintenances on-time. The fine's are sizeable, but they don't seem set in stone as I've had a fair range of different amounts. But the real problem isn't the fine anyway, it's the huge hit you take to your CI that, depending on where you were at, can cost you tens or even hundreds of millions to get back again. And the resulting passenger loss from the hit to your CI can be enough to drive you into bankruptcy depending on the margins you were operating at previously.
Basically, getting a maintenance fine is usually the beginning of the end because it should only come around when you don't have the money to do an Automatic maintenance (you should ALWAYS have your maintenances on Automatic so you don't have to worry about forgetting one). And since you don't have the money you get a fine which causes your CI to fall which makes it even harder to start making money, so your next plane misses maintenance too, and so on and so forth.
Thejug923:
Quote from: Sigma on July 25, 2010, 07:08:40 AM
But the real problem isn't the fine anyway, it's the huge hit you take to your CI that, depending on where you were at, can cost you tens or even hundreds of millions to get back again.
Shouldn't be a problem there, I don't have enough money for that kind of losses to occur... I am only 5 months old.
Thank you for such a quick response to my question. I haven't had the problem of going into the red, limiting routes to non-flown only. I don't have the money to take losses competing until I can make money lol.
I try to run as cost effective as possible as starting so late in the game I am too small to compete with everyone at this time. I am making plans to start running 75% stronger within the next 7 months. If there is anything I'm missing please help if able, not a big deal though, I should be able to run this on my own or something is wrong right... haha
Thank you again,
Patrick - CEO Transworld Connection
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