AirwaySim
Online Airline Management Simulation
Login
Username
Password
 
or login using:
 
My Account
Username:
E-mail:
Edit account
» Achievements
» Logout
Game Credits
Credit balance: 0 Cr
Buy credits
» Credit history
» Credits FAQ

Author Topic: How does fuel contracts work?  (Read 1491 times)

Offline MRFREAK

  • Members
  • Posts: 268
How does fuel contracts work?
« on: July 20, 2011, 09:52:02 PM »
How does fuel contract work?

Is it kinda like this?

I sign a contract for a fee of 200k do i then get 7% discount of the global fuel price for let's say 3 years or how is it?

Offline Richard

  • Members
  • Posts: 485
Re: How does fuel contracts work?
« Reply #1 on: July 20, 2011, 09:56:37 PM »
Well not really. I believe it is a contract for fuel discount on your homebase only.

So you pay a fee every month, and for that you get a discount, a %, on the fuel you take at your homebase (so a % of the local fuel price).

At outstations (50% of your fuel) you will pay the normal rate.
« Last Edit: July 20, 2011, 09:59:21 PM by richard79 »

Offline alexgv1

  • Members
  • Posts: 2184
Re: How does fuel contracts work?
« Reply #2 on: July 20, 2011, 10:12:57 PM »
CEO of South Where Airlines (SWA|WH)

Offline MRFREAK

  • Members
  • Posts: 268
Re: How does fuel contracts work?
« Reply #3 on: July 20, 2011, 10:23:56 PM »
Okay. I think i get it now.

But when is a great time to start using them?

Offline BobTheCactus

  • Members
  • Posts: 1244
    • AeroBlogger.com
Re: How does fuel contracts work?
« Reply #4 on: July 20, 2011, 10:29:21 PM »
Okay. I think i get it now.

But when is a great time to start using them?

once you won't lose money by signing one - some simple arithmetics ;)
Editor of AeroBlogger
If you're interested in blogging on aviation 3x/month or more:
http://AeroBlogger.com/Write

Offline MRFREAK

  • Members
  • Posts: 268
Re: How does fuel contracts work?
« Reply #5 on: July 20, 2011, 10:57:47 PM »
I'm no good at maths  :-[

Offline BobTheCactus

  • Members
  • Posts: 1244
    • AeroBlogger.com
Re: How does fuel contracts work?
« Reply #6 on: July 20, 2011, 11:04:07 PM »
I'm no good at maths  :-[

very simple.

let weekly fuel spend = f
let fuel discount %= d
let contract cost = c

if the following expression is true, then you should take the contract:
f/2*d>c/4
Editor of AeroBlogger
If you're interested in blogging on aviation 3x/month or more:
http://AeroBlogger.com/Write

Offline MRFREAK

  • Members
  • Posts: 268
Re: How does fuel contracts work?
« Reply #7 on: July 21, 2011, 06:58:52 AM »
Thanks for the tip.

I sure hope i get it right :D

Offline MRFREAK

  • Members
  • Posts: 268
Re: How does fuel contracts work?
« Reply #8 on: July 21, 2011, 07:03:40 AM »
very simple.

let weekly fuel spend = f
let fuel discount %= d
let contract cost = c

if the following expression is true, then you should take the contract:
f/2*d>c/4

The ">" means that the "C/4" is smaller than "F/2*D" right???

Offline ArcherII

  • Members
  • Posts: 1935
Re: How does fuel contracts work?
« Reply #9 on: July 21, 2011, 09:09:28 AM »
The ">" means that the "C/4" is smaller than "F/2*D" right???


Yes

Offline MRFREAK

  • Members
  • Posts: 268
Re: How does fuel contracts work?
« Reply #10 on: July 21, 2011, 09:58:57 AM »
okay thanks.

i told you i was dumb at maths. :-[

Offline alexgv1

  • Members
  • Posts: 2184
Re: How does fuel contracts work?
« Reply #11 on: July 21, 2011, 10:01:51 AM »
I was taught to remember the > as a greedy crocodıles mouth... ıt always trıes to eat the bıgger number.
CEO of South Where Airlines (SWA|WH)

Offline MRFREAK

  • Members
  • Posts: 268
Re: How does fuel contracts work?
« Reply #12 on: July 21, 2011, 10:06:16 AM »
I was taught to remember the > as a greedy crocodıles mouth... ıt always trıes to eat the bıgger number.

Yeah i heard that one as well, but i was not sure if it was the bigger who ate the smaller to become bigger or how it was.

So now i got "C/4" smaller than the other one. That means that it can't be an advantage for me yet right?

Zimbro

  • Former member
Re: How does fuel contracts work?
« Reply #13 on: July 21, 2011, 10:53:37 AM »
Numeric example:

discount = 5.7%
monthly fee = 233,500.00

minimum monthly fuel purchased = 233,500.00 / 5.7 * 100 = 4,096,491.23

Conclusion: sign the fuel contract only if you spend more than 4,100,00.00 per month (or a little bit more - remember the B checks or flight cancelations).



Offline MRFREAK

  • Members
  • Posts: 268
Re: How does fuel contracts work?
« Reply #14 on: July 21, 2011, 11:20:00 AM »
Oh. Okay thanks Zimbro.

Now i understand.  :P

cht7520

  • Former member
Re: How does fuel contracts work?
« Reply #15 on: July 25, 2011, 05:21:29 PM »
Is it worth it with that monthly fee? :o

I currently consume 60200 tonnes (x1000) of fuel a week.

Offline ArcherII

  • Members
  • Posts: 1935
Re: How does fuel contracts work?
« Reply #16 on: July 25, 2011, 10:40:00 PM »
With your current contract, you're saving huge money. But the new contract will reflect you growth.
Try calculating the percentage discount in the future contract against your weekly fuel expediture, write it down. Then divide the next contract monthly fee by 4 (or by 30 then *7, whichever you want). If the weekly fee of your next contract is lower than the number you got from the percentage out of the weekly fuel bill, then it's a good contract. If not... well, wait for a new offer  ;)

cht7520

  • Former member
Re: How does fuel contracts work?
« Reply #17 on: July 26, 2011, 03:20:08 AM »
Thanks ;D

darrenashford

  • Former member
Re: How does fuel contracts work?
« Reply #18 on: September 02, 2011, 10:42:05 AM »

 Forget greedy crocodiles.

 < means less than, as its in the shape (almost) of an L - which is the initial letter of less than.
 x < n, so just read it, x less than n    (conversely, > is greater than, the opposite)

 simples. psssstch.

 

WARNING! This website is not compatible with the old version of Internet Explorer you are using.

If you are using the latest version please turn OFF the compatibility mode.