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Author Topic: why i am i losing money?  (Read 731 times)

Hugamuga

  • Former member
why i am i losing money?
« on: July 19, 2010, 04:31:01 AM »
why i am i losing money? and how can i stop it...

i am using planes with low fuel consumption, (A320,E190s,Dash 8 300Es)

i have stuck to 3 fleet types to reduce fleet commonality costs

my load factors are at an average of 70-75%

my CI is 50

99% of my routes are making money

what can i do to stop losing money?

Offline Sigma

  • Members
  • Posts: 1920
Re: why i am i losing money?
« Reply #1 on: July 19, 2010, 04:59:29 AM »
A route "making money" doesn't mean much.  Because all the Route screen does is tell you whether you're covering your Fuel and Fee costs.  That's it.  That's "making money" before you've paid any leases, paid any pilots, paid any maintenance fees, or paid any of the thousands of people at your headquarters.

Whether your planes are making money means at least a little more -- at least then your salary to pilots/attendants are accounted for as well as your plane maintenance and lease costs but those are probably making money for you too.  But I would be willing to bet your planes are all "making money" too.

So what that means is that you're getting killed by overhead.  And what's probably the case is that your other base airports are killing you in salary.

What the Base Airport screen neglects to tell you is that, for every base you open, your salary expenses go up by 30-45%.  So unless those other bases are really bringing in a lot of cash, they're actually costing you money in salary to keep operating.  ZWWW in particular looks to have so few routes going out of it that it is undoubtedly costing you millions a week just in salaries that you're not making back.

Quite simply you don't have the income to support your salary.  Undoubtedly with so few aircraft and with 3 bases, the percentage of your revenue that you're paying to Salary is very high.

Additionally, for an airline that flies mostly smaller aircraft like the Dash-8, an LF in the low-mid 70s isn't all that great.  Those small planes need to fly as full as possible to cover your overhead expenses.  When you've inflated your overhead by opening additional bases, they need to fly really full.
« Last Edit: July 19, 2010, 05:15:17 AM by Sigma »

coopdogyo

  • Former member
Re: why i am i losing money?
« Reply #2 on: July 19, 2010, 05:18:33 AM »
First set your pricing to default levels the game slowly raises the prices. I also agree about ZWWW drop all you DHC8-300 routes that are over 500 miles. Also you can add a bunch more A320's at ZWWW and grab enough routes to make it profitable. If you need any A320's I can lease them to you.  ;)

L1011fan

  • Former member
Re: why i am i losing money?
« Reply #3 on: July 21, 2010, 01:56:09 AM »
First set your pricing to default levels the game slowly raises the prices. I also agree about ZWWW drop all you DHC8-300 routes that are over 500 miles. Also you can add a bunch more A320's at ZWWW and grab enough routes to make it profitable. If you need any A320's I can lease them to you.  ;)
Good advice, here!!!! :)

 

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