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Author Topic: Competition leaves route, but LF plummets. What's up?  (Read 998 times)

perezoso

  • Former member
Competition leaves route, but LF plummets. What's up?
« on: August 29, 2011, 01:50:17 AM »
So the competition left the ANC-MSP route, and I'm now serving it with a right-sized jet (733).  But my load factor has plummeted to mid-30s since the other guy quit.  I've made no price adjustments... I had about 55% market share before, and now I obviously have 100%, but hardly any customers. What's up with this?

Thanks,

Unladen Ptarmigan
« Last Edit: August 29, 2011, 01:52:28 AM by perezoso »

Offline schro

  • Members
  • Posts: 3072
Re: Competition leaves route, but LF plummets. What's up?
« Reply #1 on: August 29, 2011, 02:42:42 AM »
1. Market share does not equal load factor. What was your load factor with competition?
2. 142 passengers seems a bit high for a 733. Are you using HD seating? If so, you're going to get hosed on a route that long.
3. What is your RI on the route. Your CI appears to be 20, which doesn't help, but also doesn't warrant a 30% LF.
4. At your current CI, I've found it best to run about 10-15% below standard as this seems to improve net revenue. Once you hit a 40-50 CI, then I'd suggest using standard pricing and reseting at least 2x per game year.

My guess is #2.

perezoso

  • Former member
Re: Competition leaves route, but LF plummets. What's up?
« Reply #2 on: August 29, 2011, 03:13:10 AM »
You were right. The plane has HD econo seating.  It's a leased aircraft, and since I've always been a Mad Dog man, I didn't notice that the seat count was high on the 737.  Am feeling the pain of 3 days to reconfigure.

My LF went down by almost 50% when the competition left.

Interesting that this seems to show how you could use an HD configuration to attack the competition... even if I did it unintentionally.

 

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