Expert Advise on Strategy, Please ?
blumage:
just another thing. REading your reply i was having this doubt. how many times do you fly JFK-LAX? You should at least provide a 3 times a week frequency so people will choose to fly with your airline.Check also that route image.
sami:
if you are already 2.5m in minus, you gotta start cutting back costs. You are also loosing money every week more when taking a look at your airline here.
As you can see from aircraft statistics already the B707 is a BIG problem. Even the routes without marketing, staff fees etc are not getting money. Just flying the route causes you to LOSE money all the time. So ground that one fast. It just uses so massive amounts of fuel that it needs a higher loadfactor to be profitable and you cannot afford it. You could test it on shorter routes if that helps, doubt it though.
737 is doing fine on the other hand. But it could do a lot better if it had one extra daily rotation, there's many hours of slack time in the schedule! And you could try raising the route prices too there.
Kastor:
All my routes are 7 days a week services. On the JFK-LAX I have one competitor only and the demand is huge, wondering why can not achieve better LF, I have very good punctuality on that route and company image over 50.
The 737 is doing really good, but has too short range to put it on the LAX route.
I considered to fire some staff but it told me that I will loose company image if I do it, so I left them in peace. (what a nice guy I am ;D)
I raised the prices on the JFK-LAX route a month ago and the LF dropped suddenly by 10%
And on top of that I have a marketing radio/billboard/newspaper permanent nationwide.
Talentz:
Hiya! How are you?
Advise huh? Well..
I can start by looking at your aircraft and your route choices for that aircraft.
707 is a long haul aircraft. So, by choosing it, you should have done something like JFK-LHR 7x weekly. 707s are very inefficient for "short" domestic routes. Even cross country is a waste of money. Something like 727 or 757 is great for cross country.
So that, is probably why your in the hole. Though, thats not to say 707 is worthless. It is not a bad aircraft, you just need to put it on a route that can best utilize the aircraft. For short domestic routes, 737 or A320 is much more efficient.
Other then that, as far as strategy goes, it just depends on the aircraft you have. I would suggest doing some long haul. JFK is the top international airport in the US. So use that to your advantage.
Hopefully this helps.
Talentz
Sundaypilot:
Quote from: Kastor on January 11, 2009, 11:35:18 PM
All my routes are 7 days a week services. On the JFK-LAX I have one competitor only and the demand is huge, wondering why can not achieve better LF, I have very good punctuality on that route and company image over 50.
What is your route image on JFK-LAX route?
It takes long time before your route image is up, and before that you cannot get high LF. No matter how good your company image or how big the demand is. You can make route image better with a marketing campaign, but even with it it takes many months to build up.
Try to optimize your fleet usage. See the picture, that's how your schedules should look like.
Aircraft make money when they fly, so fly to the max...
(but keep the turnaround times long enough, so your image doesn't drop because of delays)
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