Expand into longhaul or wait?

Started by pitta, October 06, 2010, 02:01:02 PM

pitta

I started to play this game some weeks ago.

At the moment I run a, as I see it, a fairly stable airline inn the beginners world. I have a fleet of about 20 737-200 and 737-300/400/500s which are flying international shorthaul and high demand domestic routes from Manchester, and have about 10 more 737-400 on order for delivery whitin 6 months. My sales revenue are at about 20 mill a week whit 2-4 mill in pre-tax profit, and i have around 80 mill at hand whitout any loans.

And now comes the question, should i take the step to open up some international longhaul routes? My airline are still quit small, and to lease several planes at over 1 mill in monthly leasing cost, and then ending up flying them whit a lose, stand before me as something that could be a real hit to my airline.

What considerations should i take before making this call, and if i choose to go for it which fleet type are the safest to start out whit?

I am pretty happy that i have managed to have my first airline going this well whitout going bankrupt or being in the red a single time and don't want it too fall together now.

-Pitta, CEO Pittaair

RushmoreAir

If you can find at least 5 good Longhaul routes (200+ passengers without any competition), go for it.

Make sure you only choose 1 LH fleet type though, because you are already up to two fleet types.

I would go for the 762 and 763.  Don't get the ER.  Just the regular version.  These can make up to $1,000,000 per week if you have the proper routes.

Good Luck!  :)

Bolier Dweller

The 757 ist a bad choice eathier it's about the same thing as a 767-2.

Terrence Klaverweide

I started doing LH, with only two Fokker 100's and 5 routes. I have about 15 767's now and will be taking delivery of of my first two 773's anytime soon. I also have 9 319's and a 321 on order. So basically, I did the opposite : Went LH as soon as possible and now going back to medium and short haul, as there aren't any LH routes left for me.

I agree with Rushmore, the 763 seems to be doing an awesome job. I have 10, opposed to 5 763ER's, and the only reason I got those was because there weren't any 763's left and the lease price seemed to be favorable (low in the 90 million'ish). Obviously it depends on the route length..

Kudos on the extensive 737 network...