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Author Topic: Help?  (Read 748 times)

Offline sansa93

  • Members
  • Posts: 11
Help?
« on: January 18, 2012, 08:04:10 PM »
For the last (game) year and a half, my airline has been struggling financially. It all started when i was away from the game for a few days due to school and I had to pay for a D check on a 707 because I forgot to disable the auto-renewal of it's lease... I came back after that but was hit with c checks for many of my aircraft, and i have never really recovered from that. I have managed to avoid bankruptcy countless times, but I still spend a lot of time in the red. I know fuel costs have gone up, but I'm using more fuel efficient planes than I was in the past, so i would think that my profits would at least be similar... I'm not really too sure what i should do right now, my fleet seems pretty modest to me in terms of commonality and fuel efficiency, and all of my routes are posting weekly profits. My fleet consists of 2x 753's, ~20 MD 90s, 5 MD87s, 1 MD88, and 3 MD-81s that have leases that expire in a few months, but are not currently flying. All of my planes either have P/W or IAE engines.

If someone could give me a few tips here that could possibly save me from bankruptcy, it would much appreciated.
Thanks.

Offline Sanabas

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Re: Help?
« Reply #1 on: January 18, 2012, 08:52:30 PM »
Go to routes-->price management. Write down the average price for the 3 classes. Click the tab to reset all routes to default prices, and then write down the new prices. Come back & tell us if there's much difference.

Are you making an overall weekly profit? Can you post a screenie of your income statement?

Looking at your stats, you have good LFs.

Your plane usage is pretty low, looking at the flights from your airport, it seems like you start most planes at 5am or 6am, but only fly a couple of them overnight, when red-eye options are available. It would help if you could keep your planes in the air longer. There are some shorter routes you could be flying, such as PHL, BWI, CLE (this is almost empty, and 800 pax), MEM, PIT, MBJ (100 pax, completely empty), etc.

Looking at your pax graph, you appear to have no business class at all, but do have some first class seats. Is that correct? If so, that is something that could make a lot of difference. Instead of flying 150/0 seat MD90s, change them to 145/4, 135/8 or 130/12, depending on the amount of business demand. Not sure what config your 757-300s are in, but the default 222/15 is decent, and some more business class on that would also be good. You'd do better to fly the 2nd 757 to LAX & somewhere else as well, instead of ANC. Or even LIM + somewhere else, since it's only slightly further, but is a longhaul flight, so has significantly higher ticket prices than a domestic route.

I'd assume you're profitable at the moment, but the profits are only fairly small. Business class seats, planes being in the air longer, and resetting ticket prices to default should all increase that profit margin.

Offline sansa93

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  • Posts: 11
Re: Help?
« Reply #2 on: January 18, 2012, 10:20:19 PM »
The average ticket prices before were $438, and after I reset them the average is $448



Weekly ^


Monthly ^


I'll try adding more red-eye flights and see how that goes.

My 753's are the only planes with business and first class sections. (Y198 C10 F4)

Thanks! I will keep this updated.

Offline Sanabas

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Re: Help?
« Reply #3 on: January 18, 2012, 11:00:48 PM »
The average ticket prices before were $438, and after I reset them the average is $448

That should help, based on your current revenue that should mean an extra 3-400k a week. You should try and reset your prices to default every RL day or so, so you're not costing yourself money (with prices too low) or pax (with prices too high).


Quote
Weekly ^

So, you're making profit, but only a very small one.

Quote
I'll try adding more red-eye flights and see how that goes.

They don't even have to be red-eye flights. Nothing wrong with a short flight that is 0000-0230 in one direction, 0330-0600 on the return leg. It will generate more money than leaving the plane idle, even if it's not much profit. I've just picked one of my MD-90s at random. It's configured 130/12, 0510-1205 is the first route, average load is 110/7.5, 29.4k profit. Then 1310-2010, 117/9 average, 33.6k profit, 2115-2320 is the outboundleg, 0020-0405 is the return for the overnight flight. The outbound is 111/6 average load, the return, despite the badly timed takeoff/landing, still gets 79/3 average loads, which is 8.5k profit for that leg. So the plane overall makes 400k/week profit on 81.6% LF, and it would be 525k without the leasing cost. My best MD-90 makes a little over 500k/week, the worst makes 200k. No idea how that compares to your MD-90s, but it gives you some numbers to compare to.

Quote
My 753's are the only planes with business and first class sections. (Y198 C10 F4)

That's weird, because I can't see any C class on your pax graph. Might just be because it's so narrow that I can't get the mouse to hover over it. Anyway, compared to the default config, those 4 F seats are costing you 24 Y seats and 5 C seats. Since the ticket price for an F seat, especially on a domestic route, is a lot less than C + 6Y (about half, I think?), that means your F load factor needs to be double your C or Y LF in order to be making more money overall. So having those first class seats is probably costing you money.
« Last Edit: January 18, 2012, 11:06:41 PM by Sanabas »

icelord

  • Former member
Re: Help?
« Reply #4 on: January 19, 2012, 01:11:20 PM »
... and 3 MD-81s that have leases that expire in a few months, but are not currently flying.

Cut these AC, you spend more money in this way (leasing+maintenance+personel) than write off the leasing.
You'll pay only 50% of the remaining leasing.

Or... fly with these planes :)

my 2 cents

Offline schro

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  • Posts: 3068
Re: Help?
« Reply #5 on: January 19, 2012, 02:11:54 PM »
Not having visibility into the game world, I can offer the following pro-tips:

1. If the plane isn't in the air, then you need to cut it from your fleet.
2. If you can unload ALL of the M80s, then your commonality costs will be cut in half, probably saving you a half million per week.
3. Overall, your expenses are reasonably in line with your revenues, but I'm guessing that is mostly from the 753's contribution as they are effectivly the most profitable plane to fly in the game.
4. Along with Sanabas, adjust your seating on your planes to match the demand of the route. If you're domestic US, you probably don't need to bother with F seats- just C/Y, unless there's a specific route with more than 3-5 demand minimum demand for it.
5. Route "profits" only represent your profit against the variable costs of flying the flight. Staffing, leases, etc are not included in that number, so you can go bankrupt really quickly if you're judging yourself by route profitability.
6.  Based on #5, if you sort your routes by profitability, and start with the least profitable, cancel it, and find a better place to fly it (less competition/more demand/etc) during that time, you'll notice that you will start turning around rather quickly. If you're making less than 50k per day on an M90 or 75k on a 753 then you've got issues to resolve. (On a per flight basis, M90 should be at least 20k, but really 30k and the 753 30-50k per flight unless its a transcon, then I'd want to see 100k).
7. When replacing the M80s, unload the 87s first and put the larger planes on the route. They cost the same to operate as the larger mad dogs but have 20% less revenue potential.

 

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