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Author Topic: Company Image Question  (Read 949 times)

Offline Freezeman24

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  • Posts: 357
Company Image Question
« on: October 13, 2011, 10:57:48 PM »
Hello everyone I have a question and I would like to hear your excellent advice. I currently have a company image of 50 however I would like to earn more money quicker and I was thinking about eliminating either $790k-$1 million in marketing. If I did this would my company image drop fast? and how would this affect my pax numbers??

I look forward to hearing from you thanks again
Matthew

Offline psw231

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  • Posts: 295
Re: Company Image Question
« Reply #1 on: October 13, 2011, 11:31:37 PM »
  I would want to know more details of your airline to give you the best answer. with a CI of 50 I would expect you to have around 40 aircraft, the cuts you plan on making sound major and point to you having more ac than I would expect. What % of marketing would those cuts be? If you are operating more than 40 ac and are running LF's in the mid 60's or lower I would suggest doing exactly the opposite and increase your spending which will increase LF's and revenue by more than you spend.
  To answer your question regarding CI loss and LF's if you do cut marketing and the 790k-1mil are weekly numbers your CI will drop very fast and your LF's will drop a fair bit on routes that you don't compete on and a bunch on those that you do.

 psw231

Offline dmoose42

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  • Posts: 1264
Re: Company Image Question
« Reply #2 on: October 14, 2011, 12:09:14 AM »
I typically find that between 10-12% of sales leads to a slightly growing/stable CI given the information you provided.  If you're CI is rising rapidly, then cutting back to a stable CI amount is probably ok for a while.  In JA#5, I currently spend 12% (fleet of about 80) and my CI stays steady around 70.  Once I have my investment program complete and new planes arriving across all my fleet types, I will reallocate back toward marketing to boost my CI up further.

dmoose42


 

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