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Author Topic: New airline, impossible to survive  (Read 1062 times)

Ilyushin

  • Former member
New airline, impossible to survive
« on: December 08, 2010, 10:41:42 PM »
I'm operating out of LCY using 2 AVRO RJ-85s and 3 Fokker 50s. I have no competition at all with an avg LF of 80%, yet I make 250-350k loss a week. I'll be game over soon, it's impossible to start up.

Any tips?

Offline [ATA] Sunbao

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  • Posts: 901
    • FmFreaks
Re: New airline, impossible to survive
« Reply #1 on: December 08, 2010, 10:47:46 PM »
Your flying to long with those small planes, short routes with many trips will be much better. you should aim to make five or six return flight pr plane.

Jps

  • Former member
Re: New airline, impossible to survive
« Reply #2 on: December 08, 2010, 10:51:52 PM »
First off, you shouldn't be operating 2 different fleet types when you have less than 10-20 airplanes in your company. It's causing you major increase in both maintenance and staff costs.

Secondly, what kind of routes are you operating? You'll want to keep the routes short to carry as many passengers as possible.

Offline Blur CEO

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  • Posts: 212
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Re: New airline, impossible to survive
« Reply #3 on: December 09, 2010, 12:36:59 AM »
My first try i failed because of C checks on aircraft and not turning a profit. Second time fuel prices put me under, This try i am making a killing if only my airport was open longer.

Try to stay with one aircraft type, find a high demand route that is close (less t.han 400NM) and fly it till it's full. Then go to next largist demand. Also if you have a big enough plane and your aiport is open 24 hours try to fly it overnight like form ATL to LAX. And pack plenty of routes. The only time that plane should be on the ground is to load and unload or if your airport closes at 22 hours

GDK

  • Former member
Re: New airline, impossible to survive
« Reply #4 on: December 09, 2010, 06:20:43 AM »
Just to add on, don't scare to fly short routes with competition. Get some props like Fokker and you'll always win the market share.

Dump those jets! Yes they fly faster but the speed is not significant if you are flying short distance (100nm~400nm) routes which is the most profitable for you, and yet they burn a lot more fuel.

Get your fleet on ground overnight because short routes won't make profit between 2300-0500. If you fly them during midnight, the overhead cost might turn you down.

Offline ukatlantic

  • Members
  • Posts: 1780
Re: New airline, impossible to survive
« Reply #5 on: December 09, 2010, 12:55:08 PM »
First off, you shouldn't be operating 2 different fleet types when you have less than 10-20 airplanes in your company. It's causing you major increase in both maintenance and staff costs.

Secondly, what kind of routes are you operating? You'll want to keep the routes short to carry as many passengers as possible.

I'm operating a small airline still and I operate 2 fleet types, and it hasn't affected costs that much for me - it certainly hurts far more when you get bigger and increese the number per fleet type though.  I will concede that it is far better trying to operate one type to begin with but it certainly isnt a deal breaker if you dont and you pick the right aircraft.  I'd suggest stop automatic increase in staff salaries as the system likes to pay your staff rather generously (pay rises twice a year if I'm not mistaken - which is far more than in RL) so change it to manual pay increaes and get those little fokkers flying short routes as much as possible, if you use them over a certain range they then become loss makers same goes for your RJ's!

GDK

  • Former member
Re: New airline, impossible to survive
« Reply #6 on: December 09, 2010, 05:17:35 PM »
2 fleet is still acceptable because you don't see the huge digits for fleet cost. But it is higher than running a fleet of single plane during start up so that you can fully utilize the fund for expansion. But make sure you are ready when you plan to take in the 3rd type. It will make your current fleet cost to grow 2 or 3 times.

 

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