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Author Topic: Profit confusion  (Read 1132 times)

Offline johnlattanzio

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  • Posts: 288
Profit confusion
« on: January 28, 2011, 12:11:55 AM »
Hi All.
    Possible dumb newby question here :-)

    I am having trouble reconciling the info I am getting for one of my 744 planes, VH-SJM. It is currently flying just two routes. See figure below which shows it flying JCL510/511 and 512/513. According to the first figure these are showing a profit.

    The second figure shows a substantial loss for the week. Does this figure cover expenses not covered in the first figure? If so, what costs are included in the route page profit value?

    The aircraft view (third figure) also shows a huge loss....

    Finally the fourth and last figure shows the wrong flight number - I probably changed it at some stage but it does not seem to have changed everywhere! Could this cause a problem?

   Thanks for any help!
   JL




Offline RushmoreAir

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Re: Profit confusion
« Reply #1 on: January 28, 2011, 12:48:50 AM »
The route profit only counts expenses directly relating to that route (fuel, landing fees, etc.).
 
The aircraft view is the final figure, and it includes maintenance and leasing costs.

I don't know what's up with the flight number.  Give it a game day, sometimes the system only resets every 24 game hours.

Offline Sigma

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  • Posts: 1920
Re: Profit confusion
« Reply #2 on: January 28, 2011, 03:15:53 AM »
The route profit only counts expenses directly relating to that route (fuel, landing fees, etc.).
 
The aircraft view is the final figure, and it includes maintenance and leasing costs.

I don't know what's up with the flight number.  Give it a game day, sometimes the system only resets every 24 game hours.

Just to further clarify what Rushmore said, the "aircraft view" isn't really the "final" figure it's just inclusive of more costs.  Still not all of them though as it excludes overhead (all your HQ people, ground crew, marketing expenses, etc, etc).  So if you add up all your Aircraft "profits" that's not what you're actually putting in the bank every week.

The Route View gives you the costs to operate that route.  It's how much you sold in tickets, minus the fuel, minus the landing costs.  That's it.

The Aircraft View gives you the costs to operate that plane.  It's the same as the Route (but includes all of them the plane flies), but also minus the pilot/attendant salaries, the lease costs, and the maintenance costs

The Income Statement gives you the costs to operate your airline.  It's the sum of all your Aircraft stats, but also minus the office rent, the marketing, the non-direct personnel salaries, the training, and any loan/tax expenses.

Offline johnlattanzio

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  • Posts: 288
Re: Profit confusion
« Reply #3 on: January 28, 2011, 04:16:58 AM »
Thanks. I was coming to this conclusion and thanks for the clarification!

JL

Jps

  • Former member
Re: Profit confusion
« Reply #4 on: January 28, 2011, 11:41:38 AM »
And a general tip:

As you can see from your 2nd image, the lease cost for your aircraft is 700k. Your sold tickets are only 900k, so it's really the leasing costs that cause the loss. You should therefore keep the plane flying between those longer legs, too. The best way to do this would be to start your current flights a couple of hours sooner, and then start another flight in the same evening as they land, and fly over night, and again land back before the original route departs. This should at least double your ticket income, and thus give you overall profit.

 

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