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Author Topic: Whats the best strategy for competition?  (Read 1138 times)

Offline TerryMcKenna

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Whats the best strategy for competition?
« on: April 07, 2011, 01:07:06 PM »
Yet again I have been forced out of my market by a competitor who has overloaded the game with dozens of extra flights leaving every 5 minutes and totally swamping the market.
Even he cant be making money but he has the clout to do it, so I have decided to pull out and let the tosser play with himself.
 
I have tried all the normal things that one would do in business, reducing fares, increasing advertising and planning the most cost effective fleet, but none of these seem to work.
Do they work ????.
There doesn't seem to be any stimulation of my market growth, just a cut in my income and an increasing in my expenses.
So does increasing advertising increase passengers? Do reduced fares stimulate the market?

I know this has been discussed many times before, and yes I know that in the real world most airlines go bust.
But in the real world there are some restrictions..... and some restrictions are needed to be put in place in this game to ensure that a small percentage of players don't continually 'plunder routes'.
« Last Edit: April 07, 2011, 03:30:16 PM by sami »

Offline CUR$E - God of AirwaySim

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Re: Forced out again!!!! Whats the best strategy for competition ?????.
« Reply #1 on: April 07, 2011, 01:42:54 PM »
Hm. Did you have some routes without competition to make some good profit while competiting with him?

Did you have more frequencies = more market share against him?

Were your aircraft seated well, modern and fast to make the passengers fly with you? Or at least not all of them fly with him?


I'm one - with doing this intentional - who makes others leave my airport and who likes to monitor competition and known good or "famous" players and I haven't seen a good player with a good airline going down.
Airlines going down have always some facts I could have named month before they finally disappeared, so I'm curious what exactly happened to you.

Jps

  • Former member
Re: Forced out again!!!! Whats the best strategy for competition ?????.
« Reply #2 on: April 07, 2011, 02:01:28 PM »
I would do neither, reduce ticket prices or increase marketing. Ticket prices aren't a big factor for passengers when they are close to average. And lowering them doesn't really affect. So lowering prices only works if both airlines are above average prices.

Also, I was competing against a huge airline in MT3 who's HQ was Tokyo Haneda and bases in Narita and Fukuoka. I was based in Fukuoka, flying all B737NG-fleet, some 30 aircraft. My competitor had DHCs and 737NGs, if I remember correctly. My CI was initially 20-30, my competitor at 100. I was making a profit of $1-4 million/week. At the end of the game, I pushed up my marketing and reached CI of 70. This cost me $20 mil/week. In the end, I only received a 15% boost to ticket income (from ~$28 mil to ~$34 mil).
This result might not be generalized, but still shows that you can do well with low CI if other aspects are ok. Though I have to admit, that my competitor didn't really try to push me out, as he only served max demand, and sometimes not even that. I also had some routes where he wasn't flying.

Offline CVACEO

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Re: Forced out again!!!! Whats the best strategy for competition ?????.
« Reply #3 on: April 07, 2011, 02:33:56 PM »
The problem is the absurd flight frequencies with smaller aircraft.  I believe I read somewhere that future versions of AWS will limit frequencies between any two airports to a maximum of 10 flights per day per airline.  If this is true then it will fix this exploitation of a loophole in the simulation and I, for one, welcome that.  In reality, who would choose to fly an ATR-42 and take an hour longer to get to their destination over a B737?  No one would. 

Offline swiftus27

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Re: Forced out again!!!! Whats the best strategy for competition ?????.
« Reply #4 on: April 07, 2011, 03:17:49 PM »
Frequency = win

10 planes carrying 100 people will do better than 4 planes carrying 250.   

Offline Sami

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Re: Whats the best strategy for competition?
« Reply #5 on: April 07, 2011, 03:30:24 PM »
Please do not "yell" at the topic titles.

ksliu9

  • Former member
Re: Forced out again!!!! Whats the best strategy for competition ?????.
« Reply #6 on: April 08, 2011, 02:29:54 AM »
Frequency = win

10 planes carrying 100 people will do better than 4 planes carrying 250.   

That's true, and that's the golden rule! I use prop on some very high demand routes, and I will not affect by the high fuel price, and even if others add more frequencies on jet, my loading will not be affected much! But there's always a tradeoff, you need to have more slots, and pay more for the slots. This cannot be done on those airport with very limited amount of slots.

stefan.aj@hotmail.com

  • Former member
Re: Whats the best strategy for competition?
« Reply #7 on: April 08, 2011, 08:27:52 AM »
The problem is the absurd flight frequencies with smaller aircraft.  I believe I read somewhere that future versions of AWS will limit frequencies between any two airports to a maximum of 10 flights per day per airline.  If this is true then it will fix this exploitation of a loophole in the simulation and I, for one, welcome that.  In reality, who would choose to fly an ATR-42 and take an hour longer to get to their destination over a B737?  No one would. 

On the other hand, it is not more realistic to limit the frequencys to 10 flights a day as mentioned above. To take an example from real life SAS and Norwegian is competing heavily on the domestic route Oslo Gardermoen(OSL) - Bergen(BGO) in Norway. I looked at the time table for monday 9th of may. SAS operates 16 flights from Oslo to Bergen, while Norwegian operates 12. SAS uses Boeing 737-400/500/600/700/800 on this route, Norwegian uses Boeing 737-300/800. The flight time is 55 minutes. So limiting the number of flights to 10 per day per airline actually makes it unrealistic the other way. On the other hand you don't see these airlines flying 30-40 daily flights with turboprops in real life. And they don't schedule the flights with 5-minute interavls either. SAS flights departs as following from OSL: 07.00, 08.00, 09.05, 10.40, 12.40, 13.45, 14.45, 15.30, 16.15, 17.00, 17.45, 18.45, 19.25, 20.15, 21.45 and 23.05. Norwegian flights departs: 07.15, 08.00, 08.55, 10.45, 13.20, 15.35, 16.20, 16.55, 18.20, 19.00, 21.00 and 22.15.

I would argue that in real life, after a certain point, you don't get any additional competive advantage by adding more frequencies. And after that point you would add more capacity by using larger aircraft. The problem is that this point varies from route to route. I.e. If you have mainly leisure traffic on a route, frequency doesn't matter that much. More business traffic on the other hand means that frequency matter more, but only to a certain point.

 

 

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