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Author Topic: Impossible to break through?  (Read 1331 times)

Warkry777

  • Former member
Impossible to break through?
« on: June 28, 2011, 08:12:02 AM »
Hello guys :) Perhaps this will sound a bit noobish but either i'm really bad, or really unlucky.

I started like 5 times a new company in different parts of the worlds, trying to follow the advices for good locations (med to large airport with nearby ones with a descent amout of passagers). But each time i notice a disturbing thing: wether it is in America, Europa or Asia, the market is already almost saturated with huge companies already overflowing every interesting routes with more than enough seats, making very very hard, though impossible to do something descent when you start. And this is true about everywhere in the world.

Even if there is still like 60 new slots for new player free, did we reach a point where it's impossible to play and have fun for new players?

Offline CUR$E - God of AirwaySim

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Re: Impossible to break through?
« Reply #1 on: June 28, 2011, 08:35:53 AM »
Tried to fly the already covered routes?

Offline Kaskoblue

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Re: Impossible to break through?
« Reply #2 on: June 28, 2011, 08:37:37 AM »
Hi Warkry777!

It is not at all impossible to run an airline and make decent, even if not big money and have a good time playing the game. I went bust a few times, but also succeed well at rather challenging airports. The trick in the beginning is to avoid competition and get the right (small enough) equipment (and to be patient). Right now I am based in rather challenging SOF, Bulgaria.... but I am surviving and making money even on routes were estimated demand is 10 pax/day, using a fleet of EMB-110 Bandeirantes and F27:s.

So, just pick a small airport nobody ever heard of, get a few F27:s or similar and check all possible destinations within the range of your fleet...

Good hunting!  

Offline CUR$E - God of AirwaySim

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Re: Impossible to break through?
« Reply #3 on: June 28, 2011, 10:19:34 AM »
A problem with the very small routes and small airlines based only on small aircraft is the fuel price. If it goes back to $300+ per 1000kg you might face problems.

So, as I said, just because a route is already covered doesn't mean you are not allowed to fly it, too.

Offline Kaskoblue

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Re: Impossible to break through?
« Reply #4 on: June 28, 2011, 10:38:40 AM »
True enough that thin routes/small planes are sensitive to fuel prices... we'll see how it goes, so far so good...
Also competition on a route is ok, as long as the demand is there...

If I now started a new airline I would look at Scandinavia and Finland.... plenty of interesting airports that probably could
support a small operation... look at MMA, UME, BLL, AAR, BGO, SVG, TKU, TMP, OUL for a start...

Offline LemonButt

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Re: Impossible to break through?
« Reply #5 on: June 28, 2011, 12:43:22 PM »
Hello guys :) Perhaps this will sound a bit noobish but either i'm really bad, or really unlucky.

I started like 5 times a new company in different parts of the worlds, trying to follow the advices for good locations (med to large airport with nearby ones with a descent amout of passagers). But each time i notice a disturbing thing: wether it is in America, Europa or Asia, the market is already almost saturated with huge companies already overflowing every interesting routes with more than enough seats, making very very hard, though impossible to do something descent when you start. And this is true about everywhere in the world.

Even if there is still like 60 new slots for new player free, did we reach a point where it's impossible to play and have fun for new players?

If I were starting in the US today, I would base at CVG and load up on F27 or similar.  There are plenty of routes available to make sick profits.  There is ~400 pax demand to ORD that you could easily take 200+ worth with F27s.  There are 3 airlines based there, but the marketshare leader is Dantes Air which only flies CVG-ORD and 1 flight daily from CVG-EWR.  Furthermore, there are plenty of short hops (like 55nm route to Dayton and a few others <100nm) where you can fill up an F27 with zero competition.  If you filled up the <500nm routes with F27 and then expanded to 737 or similar, you should have a solid foundation for an airline--even when fuel spikes.

In regards to routes with competition already--don't  be scared.  For example, the CVG-ORD demand is ~400 and Dantes is flying DC-9s seven times daily to fill the demand, which are ~75 seaters and are fuel guzzlers.  If you match him with F27 and fly seven times daily, you'll split the demand with him where each of you will get ~200 pax/day.  However, you'll have 7x 50 seats and he'll have 7x 75 seats, which means you'll be flying 200/350 = 57% load factor and he'll be flying 200/525 = 38% load factor.  Furthermore, the DC9 literally burns 5x the fuel.  So in the end, you'll be flying >50% full and turning a substantial profit while his DC9s are easily running in the red.  Dantes is hands down one of the toughest competitors in the game, so if you can go up against him and be successful you can go up against anyone.  57% load factor may not sound good, but most successful airlines in the game are in the 65% range for their entire airline due to lack of demand and high competition.

Warkry777

  • Former member
Re: Impossible to break through?
« Reply #6 on: June 28, 2011, 03:41:10 PM »
Thansk for that very interesting speech LemonButt, i think i found a good spot for my airline :)

I never thought about spliting the offer to make the other's costs higher...that's perhaps because it's too obvious :p

Thanks a lot, i think it's gonna be the good one this time :)

Offline alexgv1

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Re: Impossible to break through?
« Reply #7 on: June 28, 2011, 03:54:54 PM »
Remember:

Nothing is impossible, impossible is nothing.
CEO of South Where Airlines (SWA|WH)

Warkry777

  • Former member
Re: Impossible to break through?
« Reply #8 on: June 29, 2011, 11:30:28 AM »
though i wonder if i wasn't too eager and developped too fast..i fear i'll soon be in red :(

Bah, i'll wait a bit and if it gets too bad, well, bankrupt again :)

Offline alexgv1

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Re: Impossible to break through?
« Reply #9 on: June 29, 2011, 11:33:44 AM »
though i wonder if i wasn't too eager and developped too fast..i fear i'll soon be in red :(

Bah, i'll wait a bit and if it gets too bad, well, bankrupt again :)

There are times when you can develop fast, but remember you are never going to bankrupt yourself by growing too slowly (unless you have a rapidly growing competitor maybe).
CEO of South Where Airlines (SWA|WH)

Warkry777

  • Former member
Re: Impossible to break through?
« Reply #10 on: July 01, 2011, 03:58:51 PM »
Well i felt at -420 000...i hoped my 36 lines would be able to help getting out of the red...

 

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