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Author Topic: 733s Having Low Profits....Why?  (Read 1090 times)

GMas

  • Former member
733s Having Low Profits....Why?
« on: November 29, 2010, 01:42:09 AM »
I'm wondering why my B733s aren't more successful. One of them is only pulling in a profit of 77,000k weekly and the other only 39,000 weekly despite good (about 88%) load factors. Why is this? BTW- the routes are HOU-LAS and HOU-MCO and I haven't discounted the fares very much (only taking 2-3% off). Your help is much appreciated. 

Offline JumboShrimp

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Re: 733s Having Low Profits....Why?
« Reply #1 on: November 29, 2010, 02:54:30 AM »
I'm wondering why my B733s aren't more successful. One of them is only pulling in a profit of 77,000k weekly and the other only 39,000 weekly despite good (about 88%) load factors. Why is this? BTW- the routes are HOU-LAS and HOU-MCO and I haven't discounted the fares very much (only taking 2-3% off). Your help is much appreciated. 

B733 is not amazingly efficient in 2008, compared to competition.  Flying from one end of continent to another with while the fuel prices are fairly high is not going to be extremely profitable...

GMas

  • Former member
Re: 733s Having Low Profits....Why?
« Reply #2 on: November 29, 2010, 03:41:11 AM »
B733 is not amazingly efficient in 2008, compared to competition.  Flying from one end of continent to another with while the fuel prices are fairly high is not going to be extremely profitable...

But the fuel burn is actually 60kg than that of a B737-700 plus it has lower acquisition costs...
« Last Edit: November 29, 2010, 03:44:21 AM by GMas »

Offline JumboShrimp

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Re: 733s Having Low Profits....Why?
« Reply #3 on: November 29, 2010, 04:26:33 AM »
But the fuel burn is actually 60kg than that of a B737-700 plus it has lower acquisition costs...

A319 and A318 are a little better here, and Bombardier CS line will be even better in this particular segment....

But you should be doing better than you are reporting.  I would try to reset the prices to default and see what happens.

Another thing, when looking at weekly figures, make sure you are looking at weeks without the B checks...


altmants

  • Former member
Re: 733s Having Low Profits....Why?
« Reply #4 on: November 29, 2010, 04:27:19 AM »
the 737-400 generate a lot better profits than the 737-300s

Offline JonnyAngel

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Re: 733s Having Low Profits....Why?
« Reply #5 on: November 29, 2010, 05:11:04 AM »
Anyone have any idea what the trend line for these fuel prices looks like.

A318 and A319 are doing well Jumbo,you're right, but its a fight.  I can't even think about expanding right now, because I've got to hold my cash and credit for a rainy day...

Offline JumboShrimp

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Re: 733s Having Low Profits....Why?
« Reply #6 on: November 29, 2010, 05:35:31 AM »
Prices are "Custom", but coincidently,  there was a fuel price spike in real life in 2008, reaching a peak in mid 2008.

As far as prices to expect, in ATB (covering the same time period as MT3), the fuel prices reached ~$1300 at one point, with prolonged periods of time with prices between $1100 and $1200.  The prices don't go up in a straight line, it is peaks and valleys....

Default ticket prices will go up to compensate (not completely) for the higher fuel prices...

GMas

  • Former member
Re: 733s Having Low Profits....Why?
« Reply #7 on: November 29, 2010, 08:47:58 PM »
A319 and A318 are a little better here, and Bombardier CS line will be even better in this particular segment....

But you should be doing better than you are reporting.  I would try to reset the prices to default and see what happens.

Another thing, when looking at weekly figures, make sure you are looking at weeks without the B checks...



I reset to default prices and they are doing much better! The one making 39,000 weekly now makes 250,000 weekly. It's amazing that a few dollars (literally 2) per fare can make such a big difference. Thanks

Offline JumboShrimp

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Re: 733s Having Low Profits....Why?
« Reply #8 on: November 29, 2010, 09:04:12 PM »
I reset to default prices and they are doing much better! The one making 39,000 weekly now makes 250,000 weekly. It's amazing that a few dollars (literally 2) per fare can make such a big difference. Thanks

I don't think there is ever a good reason do discount fares on routes with no competition, and the 2 you mentioned (I looked up) had no competition.  Some people here say that when the RI is low, lowering the prices helps.  But I don't really buy that argument.

Offline ArcherII

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Re: 733s Having Low Profits....Why?
« Reply #9 on: November 29, 2010, 10:56:07 PM »
I reset to default prices and they are doing much better! The one making 39,000 weekly now makes 250,000 weekly. It's amazing that a few dollars (literally 2) per fare can make such a big difference. Thanks

Maybe you set the prices at the start and never touched them again... So, when you reset the prices, your tickets where way more than 2 dollars away from default.

 

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