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Author Topic: some questions  (Read 640 times)

flightsimer

  • Former member
some questions
« on: February 01, 2011, 11:51:20 PM »
So i need to do something to get my airline pulling in more money. Right now im averaging a 80% lf with my three ATR's at 40 seats but Im considering reconfiguring them to 44 or 48 seats from the current 40 as some of my routes are approaching 90% LF. However i have a few Q's before i do that.

1) will switching to a higher "poorer" seating layout negatively hurt my CI or RI? my longest route is only 350nm but im using standard seats right now which are "good"

2) can my routes reach a 100%LF or is there a hard limit in the high 80's/low 90's that prevents this? only reason im assking is there is no airline that has a LF above 87% currently

3) will i attract more consumers if i add more capacity at all or will my passenger amount stay around the same with just a lower LF?

4) will i loose costomers if i switch to the "poorer" seating layout?

Now a few other questions i have that dont apply to my LF or seats

5) what is the best ads to build CI the fastest? right now im using countrywide radio ads only as they allow me to turn a profit, however right before that i was using countrywide tv ads. with the TV ads i was gaining CI fast but i was loosing money each week though only around 50K. Now im ranging from a few thousand to in the mid 60K range profit per week, but i would like to be above 100k to get out of my debt to expand. depending on the cost, im might run in the red again if i can get my CI up higher to get more pax and then switch back down.

6) how long typically does it take to be able to get a loan without securities?

Thanks for any replies! Tyler

Online Sami

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Re: some questions
« Reply #1 on: February 02, 2011, 12:57:54 AM »
- For short haul, it's best to utilize the max seat capacity (= 48 for small ATR). HD seating doesn't matter if you use it on short flights (less than 2-3 hrs).

- 100% LF on average throughout the week (what the figures are) is probably impossible but on some days the planes are full. Determine the sweet spot on where you can get the max amount of money with least amount of passengers. (ticket price vs. LF% ratio,  ... 90-100% LF is not optimal business)


Offline Sigma

  • Members
  • Posts: 1920
Re: some questions
« Reply #2 on: February 02, 2011, 01:26:17 AM »
So i need to do something to get my airline pulling in more money. Right now im averaging a 80% lf with my three ATR's at 40 seats but Im considering reconfiguring them to 44 or 48 seats from the current 40 as some of my routes are approaching 90% LF. However i have a few Q's before i do that.

1) will switching to a higher "poorer" seating layout negatively hurt my CI or RI? my longest route is only 350nm but im using standard seats right now which are "good"

2) can my routes reach a 100%LF or is there a hard limit in the high 80's/low 90's that prevents this? only reason im assking is there is no airline that has a LF above 87% currently

3) will i attract more consumers if i add more capacity at all or will my passenger amount stay around the same with just a lower LF?

4) will i loose costomers if i switch to the "poorer" seating layout?

Well, the first thing to ask yourself is whether or not there's even more people to move.  It does no good to add more seats if the demand charts show that you're already getting all that there is to get.

If there's still opportunity and the flights are less than 3hrs, then, yeah, change your seating.  Having poor seating doesn't affect your CI or RI.

Now a few other questions i have that dont apply to my LF or seats
Quote
5) what is the best ads to build CI the fastest? right now im using countrywide radio ads only as they allow me to turn a profit, however right before that i was using countrywide tv ads. with the TV ads i was gaining CI fast but i was loosing money each week though only around 50K. Now im ranging from a few thousand to in the mid 60K range profit per week, but i would like to be above 100k to get out of my debt to expand. depending on the cost, im might run in the red again if i can get my CI up higher to get more pax and then switch back down.

There are no "best ads".  There is simply money.  More money makes CI go up faster.

And CI only gets you pax if there's competition.  If you're flying on routes with no competition, all that matters is RI.  The only thing CI does with no competition is help how quickly you get LF after opening a new route, you'll hit the same peak LF regardless.

Quote
6) how long typically does it take to be able to get a loan without securities?

It's entirely dependent on your new revenues and your net profitability.  It could take a few days, it could take a few weeks, even a few years.

flightsimer

  • Former member
Re: some questions
« Reply #3 on: February 02, 2011, 02:11:28 AM »
ok thanks for the replies.

most of my routes all have plenty of growth left in them so i might convert them now. two a/c are just about to go into C checks, so ill do it then.

as for the ads, im gonna reask it in a different way to confirm what sigma said.

say billboards cost 100k per week for the world. Would that mean those billboards do just as good as a tv ad in only my country that also costs 100k per week? (those numbers are made up)

Offline Sigma

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Re: some questions
« Reply #4 on: February 02, 2011, 04:43:55 AM »
say billboards cost 100k per week for the world. Would that mean those billboards do just as good as a tv ad in only my country that also costs 100k per week? (those numbers are made up)

Yes.  Those different areas of advertising are just 'levels' of ads you can purchase, they don't mean anything.  All that matters is the total money you spend every week.

 

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