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Author Topic: Riding out financial pinches..  (Read 636 times)

Offline JonnyAngel

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  • Posts: 179
Riding out financial pinches..
« on: August 20, 2010, 08:31:32 AM »
Any advice on how to ride out a finance crunch. I'm okay (barely) right now, but I see trouble coming down the road.

At the max on my credit and while I have orders in to replace my ageing B146s (which were great but are now starting to kill me with the rising fuel costs, plus am I wrong or is there age making their checks more and more expensive??).

Any tips, things anyone has found useful to ride out high fuel prices/high maintenance fees (and yes, reduce my fleet types, I know, I'm working on it) that they can pass on? Or at least just ways to avoid the Bank....  ;)

Offline raptorva

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  • Posts: 412
Re: Riding out financial pinches..
« Reply #1 on: August 20, 2010, 09:52:58 AM »
BAe-146's wont be costing you in fuel as they are one of the most fuel efficient jets you can get for use on their kind of routes. As types get older, maintenance costs do indeed rise so you need to keep that into account. I myself tend to try and phase out aircraft once they are 10 years old with either newer versions or new types.
Flying as few a routes as possible as often as possible is a good way of riding out financial storms as less route destinations means ultimately less staff that you have to employ for the same number of aircraft (ie I have 3 BAe-146's dedicated solely to flying between my bases all day, 5 flights a day each).

Offline MidlandDeltic

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  • Posts: 225
Re: Riding out financial pinches..
« Reply #2 on: August 20, 2010, 06:51:30 PM »
<Snip>
Flying as few a routes as possible as often as possible is a good way of riding out financial storms as less route destinations means ultimately less staff that you have to employ for the same number of aircraft (ie I have 3 BAe-146's dedicated solely to flying between my bases all day, 5 flights a day each).

That depends on having a base at an airport that can support multiple flights on individual routes with aircraft large enough to generate the revenue without breaching the 200% rule, and having available slots - difficult for those of us joining later in the game.

I am coping OK from a small airport, using a mix of turboprops and 737s (-2, and -3) and am still turning a profit (excluding capital costs) by keeping them in the air as much as possible and not being to aggressive in attacking other players.

I do have a loan, but this has been used to replace leasing, is lower than the leasing was er month, but means I can pay off faster when possible while hunkering down in the less good times.

MD

 

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