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Author Topic: Long Haul <-> Little demand  (Read 2631 times)

GDK

  • Former member
Re: Long Haul <-> Little demand
« Reply #20 on: June 21, 2010, 12:11:18 AM »
I see. What if someone fly the same route with a smaller plane?

Offline Seattle

  • Members
  • Posts: 2791
Re: Long Haul <-> Little demand
« Reply #21 on: June 22, 2010, 05:07:53 AM »
Unless the cost to operate that plane is greatly less than a 737-600/700/300/500, then they'll make less money (even a loss, maybe) because A) They'll be carrying the same, or less people (remember it  may say 70-100, but on my best day, I might carry 113/120 pax, while the worst days It'll be 65/120). B) Pretty much same cost C) Added fleet type

It might work better if lets say, you only have routes with that type of demand.... because then you can stick to a fleet type that is more appropriate for the demand, plus you don't need to use 2 fleet types.

Thats doesnt really sound coherent..... oh well ;D
Founder of the Star Alliance!

ksliu9

  • Former member
Re: Long Haul <-> Little demand
« Reply #22 on: June 22, 2010, 01:54:41 PM »
I'll fly a 736 on a route with 70-100 demand.... It works fine because those route are typically far away, so ticket prices are high. Similarly, if its close, I just fill up the schedule. Eliminates the need for a Fokker/E-Jet.

For me, I have AVRO 100 for those routes. But I will start to replace them by EMB195.

GDK

  • Former member
Re: Long Haul <-> Little demand
« Reply #23 on: June 22, 2010, 10:35:26 PM »
Unless the cost to operate that plane is greatly less than a 737-600/700/300/500, then they'll make less money (even a loss, maybe) because A) They'll be carrying the same, or less people (remember it  may say 70-100, but on my best day, I might carry 113/120 pax, while the worst days It'll be 65/120).


So you are creating higher demand and as I know it will only happen when you got a good discount on ticket price.

Offline Seattle

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  • Posts: 2791
Re: Long Haul <-> Little demand
« Reply #24 on: June 23, 2010, 01:32:11 AM »
I never discount ticket prices.... well only in extremely high competition situations, like in the N. America or Europe challenges.

What I was trying to say is, even though the demand on Friday is 101 .... Some fridays I'll get 120 pax, sometimes I'll only get 85.

The totals you see are not strict, the are +/- 5% or so.

I'll still make money on a Saturday that I only carry 64 pax... but I'll make way more on those days that I carry over 85-90 seats, which is all the largest RJs can fly currently.
Founder of the Star Alliance!

GDK

  • Former member
Re: Long Haul <-> Little demand
« Reply #25 on: June 23, 2010, 02:07:45 AM »
I see. But the 737 will still too large for route which is below 100 even with a tolerance of +/- 10 to 15%.

Offline Seattle

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  • Posts: 2791
Re: Long Haul <-> Little demand
« Reply #26 on: June 23, 2010, 06:07:28 PM »
I fly Algiers to Bamako, daily with a 737-600 (120 seats) with competition with another 736 on two days of the week. The route is only 1500nm, yet I am making like 32K a day! ;D (which is low for one route, but it is short and I have other routes after it).

Now, the max demand that I have ever seen represnted on the graphics is 95 on a Friday. That route has demand of >100, yet I make money off of it. I will fly a 737-600 on a route with only 60-75 people, if its longer than 1500nm, because I will still be able to make money off of it, so I disagree, the 737 is not to big. Remeber, you may get LF's in the 50-70s% but its the yields that matter.
Founder of the Star Alliance!

GDK

  • Former member
Re: Long Haul <-> Little demand
« Reply #27 on: June 23, 2010, 11:55:15 PM »
Yea, many aircraft can make good profit even with low LF. But just we can't maximize our income. And if someone come to the route with a comparable small planes, we will lose the market share...

 

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