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Author Topic: Growth Strategy  (Read 1433 times)

Mascalzone

  • Former member
Growth Strategy
« on: July 12, 2011, 06:17:25 PM »
I've a simple question, and please don't look at it as a complain:

Why many players, while growing in these first stages, try to fullfill the routes with more passengers going in direct contrast to those who, of course, seek to meet the demand, with the result of lesser LF for both airlines, just to seize them when there are still a lot of empty routes? I'm quite sure this is not realistic and even not profitable.
Is there a precise strategy behind this attitude or is it just a way to say "yay! my airline is bigger than your!"?
« Last Edit: July 12, 2011, 06:25:11 PM by Mascalzone »

Offline CUR$E - God of AirwaySim

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Re: Growth Strategy
« Reply #1 on: July 12, 2011, 06:25:43 PM »
When I have an advantage over a strong competitor I could try to slow out his expansion a bit by going on his routes. At the end his routes are covered by mine and I still have routes to fly alone that makes me cash.

However, doesn't work very well because AWS is a very very friendly game...

Offline swiftus27

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  • Posts: 4395
Re: Growth Strategy
« Reply #2 on: July 12, 2011, 07:22:07 PM »
Slot costs are going to change everything.  Just wait and see.

Monk Xion

  • Former member
Re: Growth Strategy
« Reply #3 on: July 12, 2011, 07:31:07 PM »
Slot costs are going to change everything.  Just wait and see.

Gunna be honest I haven really notice the slot costs. I havent seen them as being too high. Maybe once I open other routes I will see the diference

GDK

  • Former member
Re: Growth Strategy
« Reply #4 on: July 12, 2011, 08:27:56 PM »
Gunna be honest I haven really notice the slot costs. I havent seen them as being too high. Maybe once I open other routes I will see the diference

I've stated in another post saying my payment for slots is higher than the leasing price of the B737

Offline swiftus27

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Re: Growth Strategy
« Reply #5 on: July 12, 2011, 08:35:22 PM »
I've stated in another post saying my payment for slots is higher than the leasing price of the B737

There is a massive increase to those slot costs.  Especially the more you buy to another high traffic airport.  It costs me almost a million just for an additional one route per day from ewr to lhr. 

I am so glad I am running long haul.  I don't need to buy anywhere near as many slots.   Makes long haul more attractive again.

Monk Xion

  • Former member
Re: Growth Strategy
« Reply #6 on: July 12, 2011, 08:43:37 PM »
There is a massive increase to those slot costs.  Especially the more you buy to another high traffic airport.  It costs me almost a million just for an additional one route per day from ewr to lhr. 

I am so glad I am running long haul.  I don't need to buy anywhere near as many slots.   Makes long haul more attractive again.

thats ridic. No joke....

GDK

  • Former member
Re: Growth Strategy
« Reply #7 on: July 12, 2011, 11:33:24 PM »
I am so glad I am running long haul.  I don't need to buy anywhere near as many slots.   Makes long haul more attractive again.

Too bad we have many small airports around PEK which they don't really charge for the slots and my competitor are doing extremely well by flying to this short distance destination and bought up most of the PEK slots...

wtdawg

  • Former member
Re: Growth Strategy
« Reply #8 on: July 13, 2011, 03:34:58 AM »
The slot prices do take your breath away.  The worst was when I made a mistake with "open similar route" but forgot to change the time!  That cost me about a half-million.   :'(

castelino009

  • Former member
Re: Growth Strategy
« Reply #9 on: July 13, 2011, 05:40:44 AM »
no growth strategy here, game is unplayable with these slot prices, not sure how some of you guys have 10 or 11 aircraft's already

Offline CUR$E - God of AirwaySim

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Re: Growth Strategy
« Reply #10 on: July 13, 2011, 05:49:45 AM »
Seriously guys... slot prices were no problem in DotM#2 and they are no problem in MT#5.

Even airlines with small aircraft only expand fast, for example NorgeFly at Oslo.

Monk Xion

  • Former member
Re: Growth Strategy
« Reply #11 on: July 13, 2011, 05:56:03 AM »
Seriously guys... slot prices were no problem in DotM#2 and they are no problem in MT#5.

Even airlines with small aircraft only expand fast, for example NorgeFly at Oslo.
+1 . The onlly time I notice they were slightly expensive is if I am serving ATL.

GDK

  • Former member
Re: Growth Strategy
« Reply #12 on: July 13, 2011, 07:38:34 AM »
Slot cost doesn't only dependent on where you base but also where you fly. A small airport might allow you to own the slots for free but if you flying between 2 major airports, the slot cost can be 600k or higher for 1 route.

Offline CUR$E - God of AirwaySim

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Re: Growth Strategy
« Reply #13 on: July 13, 2011, 07:54:07 AM »
And income is usually higher. So no disadvantage.

Offline Andriy

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Re: Growth Strategy
« Reply #14 on: July 13, 2011, 09:06:11 AM »
I think slot issue is a bit exaggerated, just looks like folks have found a new thing to complain about.
Yes, they are expensive, but you just need to put things into perspective.

It costs me about $1.2-1.5mm to set up a 3-4 flights a day schedule for MD-80s, but than it generates close to $400k (with still quite low LF of mid-60%) a week in profit - so in just one month a have a full payout on upfront slot investment. Simple math... - and suddenly costs do not seem to be such a terrible detterent to growth.

In a year  or so, the cost of decent advertising campaign to keep your CI would be in the range of $1mm+ per week - but no one is goign to complain about high media cost. So you just need to factor in the high slot costs into your business model



Offline [ATA] Sunbao

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    • FmFreaks
Re: Growth Strategy
« Reply #15 on: July 13, 2011, 09:29:23 AM »
no growth strategy here, game is unplayable with these slot prices, not sure how some of you guys have 10 or 11 aircraft's already

Lol game unplayable, comeon just  because the game now is harder you don't like it christ, before the game was all to easy, no it has just a little bit more fun in int, because slots has a much higher price.

How some of us got 10-11 planes ? well i for one just take the big red minus every time i set up an new route, just costed med 6.5 millon to setup an md 88 and 2 atr planes. But well thats payed off in just over a week.
« Last Edit: July 13, 2011, 09:47:03 AM by Sunbao »

Sulton111

  • Former member
Re: Growth Strategy
« Reply #16 on: July 13, 2011, 09:52:19 AM »
I fly out of MAN and like the idea of higher slot costs tbh it means that i get a chance to fly to LHR ATL etc in the early stages where as before i used to avoid them as all the better players could always afford to snap them up

so in short im a happy man with high slot costs

castelino009

  • Former member
Re: Growth Strategy
« Reply #17 on: July 13, 2011, 09:58:22 AM »
Lol game unplayable, comeon just  because the game now is harder you don't like it christ, before the game was all to easy, no it has just a little bit more fun in int, because slots has a much higher price.

How some of us got 10-11 planes ? well i for one just take the big red minus every time i set up an new route, just costed med 6.5 millon to setup an md 88 and 2 atr planes. But well thats payed off in just over a week.

dont have to call to christ in between mate, Game is harder ofc, i like that. I am talking about the slot prices everytime you open a route a massive chunk goes and ur deep in red and that what I meant. 

My only problem has been and will be is - game is SLOW, now the added expense is bit annonying

Offline [ATA] Sunbao

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    • FmFreaks
Re: Growth Strategy
« Reply #18 on: July 13, 2011, 10:15:28 AM »
If you don't like to be in the red then save up for det slots first ;)

 

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