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Author Topic: Problem  (Read 3672 times)

Offline michaelkraan

  • Members
  • Posts: 7
Problem
« on: August 16, 2011, 12:05:45 AM »
Hello

I have a big problem with my airline,
I am already a few times bankruptcy, but I donīt know what went wrong. I have three planes:
3 Fokker 70/100

my schedules:
7 days: KSAN -KSFO (avg) 89.8%   Profit: 9,392+
7 days: KSAN -KSFO (avg) 90.5%   Profit: 9,430+
7 days: KSAN -KSFO (avg) 91.2%   Profit: 9,546+

7 days: KSAN -KLAX (avg) 38.0%   Profit: 2,847+
7 days: KSAN -KLAX (avg) 39.7%   Profit: 2,626+

7 days: KSAN -KSNA (avg) 38.5%   Profit: 3,021+
7 days: KSAN -KSNA (avg) 41.1%   Profit: 2,953+
7 days: KSAN -KLGB (avg) 45.2%   Profit: 4,767+

i dont know what i do wrong :-\

Michael (from holland) my english is not very good, (sorry)

Offline Sigma

  • Members
  • Posts: 1920
Re: Problem
« Reply #1 on: August 16, 2011, 03:37:25 AM »
With Load Factors that bad (the ones below 50%) you're either flying routes with a lot of competition on them or your flights are too close together.

Also, you need to fly the planes as many times per day as you can.  I can't tell which planes are doing what, but with 3 planes on such fairly short routes, I would expect you to have more flights than you've got there. Keep that plane in the air as many minutes per day as you can.

And are you spending money on anything else?  Don't spend anything at all on Route Marketing and spend only a marginal amount on Company Image (just try to spend enough to keep it from going down week after week).

Offline michaelkraan

  • Members
  • Posts: 7
Re: Problem
« Reply #2 on: August 16, 2011, 10:15:34 AM »
But okay, thank you for your comment!

But if I have more flights on a route, do I get an email. monopoly on flights that I should cut down?

I always do advertising for my own flight and for my company. and what do you mean by that flights be farther apart?


greets michael

FuelrIce

  • Former member
Re: Problem
« Reply #3 on: March 16, 2013, 10:52:37 AM »
Okay, there's a mixture of good and bad advice in that single reply. While I realize that Michael may no longer be playing after so long, I'm sure there are others with similar issues, so I will share what I've learned from slowly clawing my way out of the hole:

1) Be careful with your choice of planes. I'm not familiar with the Fokker aircraft mentioned in the original post, but I strongly recommend sticking to turboprops until your airline is firmly in the black. Props are generally cheaper to operate than jets, so unless distance or passenger load force you to go to jets you should stick to props.

2) ADVERTISE your routes. Routes with an active ad campaign have much higher load factors and make more money as a result. The trick is, AVOID radio and TV advertising until, again, your airline is operating at a profit. Radio and TV are horridly expensive: marketing costs alone forced my one reset this game because I didn't realize that yet. Steer clear until you can afford them.

3) Here I do agree with Sigma. KEEP YOUR PLANES IN THE AIR!! Every minute they're not down for A/B maintenance, they should be flying and making money. Planes COST MONEY sitting on the ground!

4) HIRE ENOUGH PEOPLE to do the job. Don't over-hire: personnel costs can break an airline in a hurry if you go overboard. But by the same token, UNDER-hiring costs you in terms of both image AND MONEY, because lack of staff can force delays and/or cancellations. Keep ALL staff areas at 100%, perhaps slightly over in Ground Handling, customer relations and MAINTENANCE.

5) PRICES. Always set the initial price for a given route slightly below the default value, and always make sure the price ends with a 5 or 9 (125, 179, 499, etc.).  Customers think they're saving money that way and will fly your routes more often. You can always raise prices later to increase profits, but never go so high that your load values drop more than 3-4%, and always remember the 5-or-9 rule.

6) ROUTES. Anchor your airline with high-demand routes (ex.: New York-Los Angeles) that will carry consistently high load factors, then add other routes as profit margins allow. Assign routes to aircraft large enough to carry the expected load, but not so large that they consistently fly with empty seats. Planes burn fuel, bigger planes burn more fuel, and fuel costs money. Keep your costs down.

I'm sure there's plenty more, but that's all I can think of at 7am lol. Clear skies!

Offline michaelkraan

  • Members
  • Posts: 7
Re: Problem
« Reply #4 on: March 16, 2013, 12:41:00 PM »
Thanks for all the information!  ;D

exchlbg

  • Former member
Re: Problem
« Reply #5 on: March 16, 2013, 12:49:28 PM »
Please stick to already existing beginner FAQīs. Some of the tips above are simply not true.
There is no need to stick to props. Being cheaper to lease and operate, they produce a lot of overhead costs. Main thing in beginning is to stick to one or two fitting models for your routes (fleet commonality).
No definite need to advertise routes, only if you want to fire up route advareness process, but no MUST.Route awareness climbs slowly just by flying the route.
Donīt hassle with staff manually being a beginner, keep it on automatic, and you will be fine.
Price awareness of PAX doesnīt include awareness of -99 fares, you will have to get to optimal fare by try and error, itīs dependant from many variables including RI,CI,flight times,opponent offers.
« Last Edit: March 16, 2013, 01:01:38 PM by exchlbg »

L1011fan

  • Former member
Re: Problem
« Reply #6 on: May 01, 2013, 01:07:03 AM »
But okay, thank you for your comment!

But if I have more flights on a route, do I get an email. monopoly on flights that I should cut down?

I always do advertising for my own flight and for my company. and what do you mean by that flights be farther apart?


greets michael
You're probably scheduling them close together. Does the demand need that? No warnings are given. You'll just see your profits fall. You need to possibly  need to cut a flight or two out and put the plane elsewhere . I have been playing for a long time, and even I have to refresh my mind on how things work. Also, my understanding is Fokkers are fuel guzzlers. But we all have to learn, and in my case re-learn. It's helping. Oh, and contrary to what others will tell you, moderate marketing does indeed help, but only if you can afford it.
« Last Edit: May 01, 2013, 01:17:37 AM by L1011fan »

 

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