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### Author Topic: Fuel Contracts  (Read 3631 times)

#### GlobalCEO

• Members
• Posts: 78
##### Fuel Contracts
« on: July 14, 2011, 12:15:07 AM »
So what is your impression of this feature so far? I'm having a hard time calculating if the monthly cost is worth using it because I can not find my overall fuel consumption for a month.

Thanks

#### [ATA] Sunbao

• Members
• Posts: 901
##### Re: Fuel Contracts
« Reply #1 on: July 14, 2011, 12:25:29 AM »
Well much depends on the fuel prices atm 7% discount for 450k with the current fuel prices is not a good deal at my airport, so either i need a much bigger fleet or the fuel prices has to go high up before i can use it to anythings.
Also the long contract is keeping me away, it is good to have it with high prices not with low.

Maby i sign when i have more than 35 planes or so.

#### JumboShrimp

• Members
• Posts: 5992
##### Re: Fuel Contracts
« Reply #2 on: July 14, 2011, 12:27:33 AM »
So what is your impression of this feature so far? I'm having a hard time calculating if the monthly cost is worth using it because I can not find my overall fuel consumption for a month.

Thanks

Instead of using monthly rate, use daily rate.  You can look it up here:
http://www.airwaysim.com/game/Routes

Just move the mouse over the last day, over the fuel line.  It will pop up the daily fuel expense.

Find a breakeven point by dividing your monthly contract cost by 30, and then divide this by discout rate.  You will get a dollar figure where you would breakeven.  Suppose you end up with figure \$100,000.  Compare it to your daily fuel expense.  If your daily fuel expense is > \$100,000, the contract would work to your advantage.

#### flightsimer

• Former member
##### Re: Fuel Contracts
« Reply #3 on: July 14, 2011, 02:33:29 AM »
Take the monthly fee and divide it by the discount percent. Then multiply that number by 100 and that gives you the exact ammount your monthly fuel bill needs to be to break even on the monthly fee. If your fuel bill is more than that number, then you will be saving money. If it is lower than that number, then you will be loosing money.

#### GDK

• Former member
##### Re: Fuel Contracts
« Reply #4 on: July 14, 2011, 04:55:44 AM »
Take the monthly fee and divide it by the discount percent. Then multiply that number by 100 and that gives you the exact ammount your monthly fuel bill needs to be to break even on the monthly fee. If your fuel bill is more than that number, then you will be saving money. If it is lower than that number, then you will be loosing money.

I think 90% of the people here just go and click for a contract without doing what you mentioned.

#### jewiden

• Members
• Posts: 93
##### Re: Fuel Contracts
« Reply #5 on: July 14, 2011, 08:41:43 AM »
Worth mentioning is that the contract is only valid on your base airport(s), and you buy roughly half your fuel at 'outstations' as mentioned in the game.

#### michael

• Members
• Posts: 530
##### Re: Fuel Contracts
« Reply #6 on: July 14, 2011, 09:38:37 AM »
Worth mentioning is that the contract is only valid on your base airport(s), and you buy roughly half your fuel at 'outstations' as mentioned in the game.

I may have missed that and need to clarify - the discount doesn't apply to fuel that you may purchase at your destination?

#### [ATA] Sunbao

• Members
• Posts: 901
##### Re: Fuel Contracts
« Reply #7 on: July 14, 2011, 09:42:11 AM »
Nope the fuel contract only apply to your home base.

#### jewiden

• Members
• Posts: 93
##### Re: Fuel Contracts
« Reply #8 on: July 14, 2011, 09:57:58 AM »
I quote, from the fuel information page:

Quote
Selecting a fuel supplier is optional. If you do not have an active contract your aircraft are fuelled with the daily market prices. Fuel contracts at outstations are automatic and always at the market prices.

#### DanDantes

• Former member
##### Re: Fuel Contracts
« Reply #9 on: July 14, 2011, 10:34:51 AM »
Depending on your strategy moving forward the fuel contracts can save you big money is my understanding. I have a fuel contract that is costing me more today then saving me due to the monthly cost. However I expect my fuel bill to b 3-5 times the size in 12months and thats where the savings kick in and even more in 24months.

Dan
Dantes Air

#### DanDantes

• Former member
##### Re: Fuel Contracts
« Reply #10 on: July 14, 2011, 10:37:00 AM »
Nope the fuel contract only apply to your home base.

How sure are you about that? And if thats the case then how does it work? If I have a LH bird that has a range of 6000nm and I fly a return route that is 5900nm does that mean that I never take on fuel at the destination airport?
Dan

#### [ATA] Sunbao

• Members
• Posts: 901
##### Re: Fuel Contracts
« Reply #11 on: July 14, 2011, 10:39:46 AM »
How sure are you about that? And if thats the case then how does it work? If I have a LH bird that has a range of 6000nm and I fly a return route that is 5900nm does that mean that I never take on fuel at the destination airport?
Dan

"Fuel contracts at outstations are automatic and always at the market prices"

#### michael

• Members
• Posts: 530
##### Re: Fuel Contracts
« Reply #12 on: July 14, 2011, 11:17:35 AM »
Depending on your strategy moving forward the fuel contracts can save you big money is my understanding. I have a fuel contract that is costing me more today then saving me due to the monthly cost. However I expect my fuel bill to b 3-5 times the size in 12months and thats where the savings kick in and even more in 24months.

Dan
Dantes Air

I signed a fuel contract also - I had a look at last week and added the discount back on top and the discount was more than the monthly cost so it seems to be working in my favor (I guess the monthly cost is factored in to the fuel line item in my financial statement). Would be nice to see a bit more data on this somewhere, but in the meantime I will just assume it is helping.

Now, I wouldn't mind a maintenance discount with upcoming C checks

#### JumboShrimp

• Members
• Posts: 5992
##### Re: Fuel Contracts
« Reply #13 on: July 14, 2011, 01:20:39 PM »
Worth mentioning is that the contract is only valid on your base airport(s), and you buy roughly half your fuel at 'outstations' as mentioned in the game.

Hmm....  That's a good point.  I forgot about that part.

#### alexgv1

• Members
• Posts: 2184
##### Re: Fuel Contracts
« Reply #14 on: July 14, 2011, 01:22:53 PM »
Don't think I'll experiment with these until I'm a bit bigger but will be a great help with fuel \$1000+
CEO of South Where Airlines (SWA|WH)

#### JumboShrimp

• Members
• Posts: 5992
##### Re: Fuel Contracts
« Reply #15 on: July 14, 2011, 01:49:55 PM »
I got a really cheap contract offer, and I calculated my breakeven was \$70,000.  Being over \$70,000 daily fuel cost, I signed it.  But I just realized that I need to divide my daily cost by 2 (since I am only buying 1/2 of fuel at my base)....  So I am losing some money now.  But I should be \$140,000 in a game month or two...

#### Sulton111

• Former member
##### Re: Fuel Contracts
« Reply #16 on: July 14, 2011, 02:36:10 PM »
I done the same and am losing around 6.5k per week than if i had held off but as its really quite minimal im not to concerned and with my 10th Aircraft being delivered in 2 weeks this should cut that deficit by a good 2k or so.

I think you need around 12 aircraft to break even but my maths aint that great and it would also depend on what aircraft you have as im only running 2 737-300s and 7 BAE ATP which are only prop jet so pretty good on the fuel burn

#### Silentlysailing

• Members
• Posts: 87
##### Re: Fuel Contracts
« Reply #17 on: July 14, 2011, 03:00:51 PM »
I calculated mine this way. Took, previous week's fuel cost, multiplied it times 4 to get an approximate monthly, fuel cost, as I've added 6-7 new aircraft in the last 2 weeks. Then from that monthly estimate divide by 2 to get the fuel at your home base. Finally multiply that by what ever the fuel contract's savings are. Then compare it to the contracts price.

here's my example,

837,000*4= \$3,348,000 total monthly fuel cost based off of prior week's income statement

3,348,000/2= \$1,674,000 approximate fuel from my base

1,674,000*.05 = \$83,700 < \$152,500 savings is less than contract price, so it is not worth it.

Hope this example helps clarify.

#### SquireJoe

• Former member
##### Re: Fuel Contracts
« Reply #18 on: July 17, 2011, 08:13:01 PM »
Thank you for the example. I was figuring mine the same way and it seems that until one gets an airline of a certain size or consumption level the contracts don't make much sense.

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