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Author Topic: Everything is going up - but the money  (Read 4371 times)

chrisadams

  • Former member
Everything is going up - but the money
« on: May 16, 2011, 03:28:54 PM »
Hey,
I've posted in here before and have had some amazing advice, taking all that into account I started again. My average load factor is 86.2% and my company image is 50 (both are still rising) but i still loose about 200,000-400,000 a day all my routes are making profit

Can anyone help me and tell me where I could be going wrong (I have 4 737's in operation and my debt has sunk to just over 5 mill)

Thanks Chris

Offline JumboShrimp

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Re: Everything is going up - but the money
« Reply #1 on: May 16, 2011, 03:31:20 PM »
Do you re-set your ticket prices every once in a while?

chrisadams

  • Former member
Re: Everything is going up - but the money
« Reply #2 on: May 16, 2011, 03:41:06 PM »
how do I do that (no)

I just dont get it I have routes earning 41k.....

cht7520

  • Former member
Re: Everything is going up - but the money
« Reply #3 on: May 16, 2011, 04:02:39 PM »
Cut the marketing for now (not stopping it completely, just go for the cheapest option). Personally I don't think marketing makes THAT much of a difference but it can cut a lot of your profits. I'm running relatively smoothly with -8 CI.

Offline ArcherII

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Re: Everything is going up - but the money
« Reply #4 on: May 16, 2011, 04:11:49 PM »
how do I do that (no)

I just dont get it I have routes earning 41k.....

Go to Routes/Price Management and then scroll all the way down and click on reset ticket prices. You will notice that they will rise, and that will be the standard price you should have.

Offline Sami

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Re: Everything is going up - but the money
« Reply #5 on: May 16, 2011, 09:14:33 PM »
Load Factor alone does not tell anything about how much money you make or should/could make.

So you should post more info, like income sheet etc.

filipebravo

  • Former member
Re: Everything is going up - but the money
« Reply #6 on: May 16, 2011, 10:50:40 PM »
Cut the marketing for now (not stopping it completely, just go for the cheapest option). Personally I don't think marketing makes THAT much of a difference but it can cut a lot of your profits. I'm running relatively smoothly with -8 CI.

I would say: cut on marketing and keep your CI ~20 to 30 and do not advertise in all world if you fly just on your continent.

chrisadams

  • Former member
Re: Everything is going up - but the money
« Reply #7 on: May 17, 2011, 03:07:21 PM »
my marketing is just base country atm and is everything but television and in my base country (I'm based in Malta)

Jps

  • Former member
Re: Everything is going up - but the money
« Reply #8 on: May 17, 2011, 05:59:49 PM »
Like sami said, I recommend you to post your income sheet so we can analyze what expenses you have.
Also, are all your 737s in the same fleet group (eg. only 737-300/400/500 or 737-600/700/800/900)?

chrisadams

  • Former member
Re: Everything is going up - but the money
« Reply #9 on: May 18, 2011, 09:47:26 AM »
i have three 737-300 and 1 737-400 but there all going through the C maintenance atm, even though i started with a year on them all (couldnt find any with any longer) so i might just start again, but yeah ill post the income sheet

chrisadams

  • Former member
Re: Everything is going up - but the money
« Reply #10 on: May 18, 2011, 09:54:13 AM »
This is the income statement :) There are lots of red numbers on it (not good) I'll take any critisim from it :)

Offline Sami

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Re: Everything is going up - but the money
« Reply #11 on: May 18, 2011, 10:12:33 AM »
- Need business class seats
- 30% off marketing costs.

Offline knobbygb

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Re: Everything is going up - but the money
« Reply #12 on: May 18, 2011, 10:18:18 AM »
Yeah, marketing seems high at 10% of gross income - especially when you're not in profit or have lots of spare money.

I notice the marketing costs are going up quite a bit each week.  Are you adding lots of new destinations?  This pushes up marketing a lot and also extra lots of extra staff.

Exactly what aircraft do you have and what routes are they flying?  Could you post that screen as well.

Even with 'good' a/c such as 737's, unless they're flying three short sectors a day (or more) you may struggle to make a profit - especially if you have lots of marginal destinations.  With fuel as high as $1000 you need to really be watching the time the a/c are in the air. Long routes mean lots of fuel for not much more income.

If it's any consolation - there was actually a week in there where you would have made a profit had you not leased a new a/c

chrisadams

  • Former member
Re: Everything is going up - but the money
« Reply #13 on: May 18, 2011, 10:22:03 AM »
YAY one week of possible profit.....

and i can't add business class because I'm 9mill in debt, and I havent leased an aircraft since when i founded my company, i leased the 737-300's in one day and the 737-400 the next day?

chrisadams

  • Former member
Re: Everything is going up - but the money
« Reply #14 on: May 18, 2011, 10:25:03 AM »
here is the what each plane is flying and how much money its making thingy.... (it vary's alot)

Offline alexgv1

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Re: Everything is going up - but the money
« Reply #15 on: May 18, 2011, 10:38:45 AM »
here is the what each plane is flying and how much money its making thingy.... (it vary's alot)

Looks like the routes are making decent money (better near the top), at least they're in the 5 figures.

I'd say your staff expense is quite big, so enslave them and pay them nothing. If their morale goes down motivate them with the good 'ole cat o' nine tails  :laugh:

(just kidding please dont fire all your staff!)
CEO of South Where Airlines (SWA|WH)

Offline BobTheCactus

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Re: Everything is going up - but the money
« Reply #16 on: May 18, 2011, 10:40:30 AM »
what is your fleet utilization?
Editor of AeroBlogger
If you're interested in blogging on aviation 3x/month or more:
http://AeroBlogger.com/Write

chrisadams

  • Former member
Re: Everything is going up - but the money
« Reply #17 on: May 18, 2011, 10:44:51 AM »
what is your fleet utilization?

what do you mean by fleet utilisation :)

Offline BobTheCactus

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Re: Everything is going up - but the money
« Reply #18 on: May 18, 2011, 10:47:52 AM »
Dashboard -> stats -> aircraft stats -> average fleet utlization

it will be in the form __.__ h
Editor of AeroBlogger
If you're interested in blogging on aviation 3x/month or more:
http://AeroBlogger.com/Write

chrisadams

  • Former member
Re: Everything is going up - but the money
« Reply #19 on: May 18, 2011, 10:50:07 AM »
11.0 h :)

 

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