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Author Topic: Debts - again  (Read 1477 times)

chrisadams

  • Former member
Debts - again
« on: April 15, 2011, 01:37:47 PM »
I started a post about getting started and debts earlier, and had very helpful replies from it

Since then i have started a new airline, operating from Malta, and having one route which runs twice a day to Cairo.
The passenger demand on this route is somewhere around 250 and I can carry up to 252 passengers a day, but im still loosing $3,500 a week on this route from EACH flight ($7,000 a week in total) can anyone tell me where im going wrong?

I have a fleet of 3 Boeing 717's, but two are still to come through any help?

Thanks

Chris (again) (:

Offline Pilot Oatmeal

  • Members
  • Posts: 700
Re: Debts - again
« Reply #1 on: April 15, 2011, 02:09:53 PM »
Whats your company image/ route image?  You can't expect to see people buying seats until your marketed correctly.

minerva

  • Former member
Re: Debts - again
« Reply #2 on: April 15, 2011, 02:11:04 PM »
Chris,
what are you load factors like?  It sometimes takes a couple of game weeks for the LF to rise upto a profitable level (ie above 70%).
Also, what are you spending on marketing (as a percentage of your total income)?
Stephen

Offline JumboShrimp

  • Members
  • Posts: 5992
Re: Debts - again
« Reply #3 on: April 15, 2011, 02:15:20 PM »
Unlike what other people say (max out one route before moving to next) I set up one fligt on a route (that can accomodate several flights), and come back to it later to schedule more flights, after RI has risen sufficiently.

chrisadams

  • Former member
Re: Debts - again
« Reply #4 on: April 15, 2011, 02:59:54 PM »
Hi

My company image is 8, route image is 4 for each route and current load factors are 35% and 33%

Hope you can tell me where I'm going wrong, I won't take offence, just say it how it is please, this is only like my 11th time of restarting due to bankrupcy :D

Thanks :)

Offline [ATA] Sunbao

  • Members
  • Posts: 901
    • FmFreaks
Re: Debts - again
« Reply #5 on: April 15, 2011, 03:29:43 PM »
Hi

My company image is 8, route image is 4 for each route and current load factors are 35% and 33%

Hope you can tell me where I'm going wrong, I won't take offence, just say it how it is please, this is only like my 11th time of restarting due to bankrupcy :D

Thanks :)

Just wait som weeks and see

minerva

  • Former member
Re: Debts - again
« Reply #6 on: April 15, 2011, 04:27:07 PM »
Hi

My company image is 8, route image is 4 for each route and current load factors are 35% and 33%

Hope you can tell me where I'm going wrong, I won't take offence, just say it how it is please, this is only like my 11th time of restarting due to bankrupcy :D

Thanks :)


You won't be profitable until you start filling planes with pax, and that won't happen until the route image rises much higher.  So, keep flying the same route.  Don't spend money on route marketing, but DO spend some cash on general marketing, at least 5%-10% of your gross income.  Keep in mind that you always lose money in the first game week/months so don't spend all your start up money on planes, or at least not until you have some revenue coming in.


LostInBKK

  • Former member
Re: Debts - again
« Reply #7 on: April 15, 2011, 11:14:06 PM »
Unlike what other people say (max out one route before moving to next) I set up one fligt on a route (that can accomodate several flights), and come back to it later to schedule more flights, after RI has risen sufficiently.
So you open multiple routes with one plane or just use one plane on a route till the RI as risen?

LostInBKK

  • Former member
Re: Debts - again
« Reply #8 on: April 15, 2011, 11:15:50 PM »
Hi

My company image is 8, route image is 4 for each route and current load factors are 35% and 33%

Hope you can tell me where I'm going wrong, I won't take offence, just say it how it is please, this is only like my 11th time of restarting due to bankrupcy :D

Thanks :)
Don't worry about going bankrupt I have been playing the game for over a year and I still regularly go BK  :-[ But I don't care as I still have fun playing the game.

Cheers
LostInBKK

castelino009

  • Former member
Re: Debts - again
« Reply #9 on: April 16, 2011, 04:24:21 AM »
Chris,
You have to lower your rates mate. Drop it by at least 10% to start with, but keep a eye on the routes (day by day game time). Also try to have 2 planes of each kind at the same time.


Cheers
VJC

Offline [ATA] Sunbao

  • Members
  • Posts: 901
    • FmFreaks
Re: Debts - again
« Reply #10 on: April 16, 2011, 10:09:33 AM »
Chris,
You have to lower your rates mate. Drop it by at least 10% to start with, but keep a eye on the routes (day by day game time). Also try to have 2 planes of each kind at the same time.


Cheers
VJC

No reason at all to lower prices

Offline Pilot Oatmeal

  • Members
  • Posts: 700
Re: Debts - again
« Reply #11 on: April 16, 2011, 11:06:16 AM »
No reason at all to lower prices

the only reason to lower your prices at the start would be to get a quick jump in your route image...apart from that your losing more money...so its not recommended unless you have high competition on the route

chrisadams

  • Former member
Re: Debts - again
« Reply #12 on: April 16, 2011, 03:58:33 PM »
I'm now based at Malta, and my company image is 6, i have 2 flights running daily, one to milan and one to tel aviv, the milan route is raking in 25,000 and the tel aviv 10,000, should i scrap the tel aviv and fly to milan twice, there is demand for it (just i think) or should i leave it as it is? :D

Thanks

Chris :D

Offline JumboShrimp

  • Members
  • Posts: 5992
Re: Debts - again
« Reply #13 on: April 16, 2011, 05:49:45 PM »
the only reason to lower your prices at the start would be to get a quick jump in your route image...apart from that your losing more money...so its not recommended unless you have high competition on the route

I don't think it helps you increase RI.  IIRC, ou can go up only 3.5 points per week on RI just by flying it.  I don't think prices affect this rate.

GEnx

  • Former member
Re: Debts - again
« Reply #14 on: April 16, 2011, 08:21:15 PM »
Okay Chris, when you start an airline..

A. Get ONE type of aircraft (like you did, which is good).
B. Try to find the nearest airports with enough demand to support several rotations (open route planning, select whole world, max range 200 and increase this until you find something suitable -- do not only look at the biggest airports).
C. Fit as many rotations into each plane as you can, 8% flight delay probability is enough (however, night flights between 0000-0500 are mostly not worth it).
D. Add newspaper and billboard marketing in your home country.
E. Lower prices with 15% until your routes are showing 80%-90% load factors.
« Last Edit: April 16, 2011, 08:25:04 PM by Quinoky »

chrisadams

  • Former member
Re: Debts - again
« Reply #15 on: April 16, 2011, 10:17:11 PM »
The problem is there is no where within 200 miles of malta, and milan isnt too far away so should i start again? :D

GEnx

  • Former member
Re: Debts - again
« Reply #16 on: April 16, 2011, 10:36:37 PM »
Well I forgot to mention that you only need to find the airport that is closest to your HQ (provided that it has enough demand), so it doesn't necessarily have to be within 200NM. This applies only to short haul aircraft, by the way. If you start with long haul aircraft, things are a bit more complicated. But since you're based in Malta, that luckily doesn't apply to you. Again, just find an airport that is as close to your HQ as possible with enough demand and little to no competition. Then follow the other steps and you'll be fine. :)

 

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