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Author Topic: Not making a profit  (Read 1464 times)

jordanD

  • Former member
Not making a profit
« on: April 26, 2011, 03:19:03 PM »
This thread's nothing new, but I've tried a lot of things and I'm not making much of a profit, just sort of breaking even most of the time which isn't allowing me to grow very much. I'm operating 3 757s on routes with no competition, just shy of 1000nm flights, and operating them on two of those turns a day, which is all I can get in scheduling. They leave first thing in the morning and get in either around midnight or around 23:00. I'm just not making enough money to grow and can't really figure out why. Load factors are all in the 70-80% range, pricing is set slightly lower than default right now, and I have a mid level CI. Any suggestions? Are the profit margins on the 75 so thin that 80 something percent isn't enough to turn a decent profit? One of my 757s has Pratt engines whereas the others have RRs, but I wouldn't think this would make or break me. It was either lease that one or not get a new airplane so I didn't think I had a choice but to sacrifice a slight bit of fleet commonality to get a little growth.

Offline eleritz

  • Members
  • Posts: 390
Re: Not making a profit
« Reply #1 on: April 26, 2011, 05:11:13 PM »

your strategy and fleet commonality are fairly OK (different engine types are not really a problem), but you would have more profit with these planes if u started the business with longer routes - around 3000nm.

as far as b757s go, a 3000nm route 7 times a week will always get you more money than a 1000nm route 14 times a week.

and no need to lower ticket prices below the default. it doesnt help much to get more passengers.

Offline type45

  • Members
  • Posts: 843
Re: Not making a profit
« Reply #2 on: April 26, 2011, 05:42:05 PM »
maybe you can make a try with a 757 on market or just drop one of the 757's route  to do this. 757 is better to be used on those longer routes, left routes <1500-2000 to 737/320s, they are much cheaper in cost :P

filipebravo

  • Former member
Re: Not making a profit
« Reply #3 on: April 26, 2011, 05:57:27 PM »
Long routes: yes. But choose a route with enough business & first class demand! 757s can be profitable even with short routes providing that those routes have at least some business demand (5 to 10% would be ideal).

jordanD

  • Former member
Re: Not making a profit
« Reply #4 on: April 26, 2011, 06:54:27 PM »
Ii'll give it a shot. It's always kind of tricky finding the optimal range for a certain type. My last all 737 shorthaul airline was insanely profitable in comparison to this one.

flyboy842

  • Former member
Re: Not making a profit
« Reply #5 on: April 26, 2011, 07:56:42 PM »
as far as b757s go, a 3000nm route 7 times a week will always get you more money than a 1000nm route 14 times a week.

Why is that? Is it because of turnaround time?

Offline JumboShrimp

  • Members
  • Posts: 5992
Re: Not making a profit
« Reply #6 on: April 26, 2011, 08:30:57 PM »
Turnaround time is a bit excessive for plane this size (757), but if you fill it up with passengers, you should still make a healthy profit.

Offline eleritz

  • Members
  • Posts: 390
Re: Not making a profit
« Reply #7 on: April 26, 2011, 10:33:05 PM »
Why is that? Is it because of turnaround time?


basically yes, its because when you fly twice a day on shorter routes, the plane almost inevitably stays on the ground at night (you come back to your base around midnight and depart around 6am), which, including all turnaround times, allows your plane to be airborne only around 12 hours/day. when you fly a longer route, around or even better more than 3000nm, you can fly overnight so that your plane stays on the ground only the time necessary for turnarounds (4 hours daily) which can give up up to 20 hours of flying/day (depending on the length of the route)

jordanD

  • Former member
Re: Not making a profit
« Reply #8 on: April 29, 2011, 07:32:47 PM »
Well I retooled my routes and have my planes doing one really long round-trip everyday, with each route making just about twice as much as my old shorter haul routes. But I'm still not making anything. One week ill make around 200k and the next week a loss. Nothing that I can consistantly see causing t either? Maybe fuel prices are the problem? My all CRJ airline was growing faster than this one.

chrisadams

  • Former member
Re: Not making a profit
« Reply #9 on: May 02, 2011, 04:25:33 PM »
I've had exactly the same problem, i can break even and everyone says just be patient but i'll increase by 200,000 and then go down by 400,000 so i am patient but it still wont improve

Offline Unbornio

  • Members
  • Posts: 662
Re: Not making a profit
« Reply #10 on: May 03, 2011, 10:42:56 AM »
Did you borrow any loans? The negative numbers might be due to them.

Are you running excessive advertising campaigns? Don't run worldwide ones if you're just a small regional airline....

If not, change your routes to very short ones <-- earns more than long-haul in most cases. For turnaround times, don't try and get 1% delays, aim for ~10% (it wastes your valuable time).

Also your VALUABLE midnight to 6am block is being wasted. I know there's an A check but it's only on one day. Schedule another short hop around that time for days that you don't have the A check and try getting routes that fit the timetable so its in service most of the time. For prices, only decrease by 10-15% when starting new routes and gradually increase it after it reaches the high 90s.
---

@Chris, I think you're talking about the money you earn each game day correct? There's a certain day when you have to pay your staff and other related costs.


Edit: I would just like to add, when I used 757s, they were way more profitable than 737s, so you're on the right planes.
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