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Author Topic: Almost Bankrupt  (Read 2316 times)

Online schro

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  • Posts: 3081
Re: Almost Bankrupt
« Reply #20 on: January 25, 2012, 04:37:56 PM »
Your losses from the other weeks were due to C checks happening, so I'd say try to pull yourself up. If you can, review birds with C checks, and consider grounding them and not checking them to save cash, and suspend the least profitable routes if possible... this will help greatly from a short term perspective...

caglar35

  • Former member
Re: Almost Bankrupt
« Reply #21 on: January 25, 2012, 04:46:20 PM »
I have one dc 9's C check in 20 day which cost more than 1,5 million and 1 year to lease end. Shall I keep it till end grounded?

Offline Sanabas

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Re: Almost Bankrupt
« Reply #22 on: January 25, 2012, 04:51:26 PM »
Might be good to turn off auto-checks, and keep it grounded until you've got cash again. Then you can decide whether to pay for the c-check, or pay to end the lease. Fly it right up to a few days past C-check though, no need to ground it early and cost yourself revenue.

caglar35

  • Former member
Re: Almost Bankrupt
« Reply #23 on: January 25, 2012, 05:52:16 PM »
Maybe this is a weird question but I am just wondering what would happen if I would not do c check of one of my place and run it some month without c check? Cancelation in the flight ? or what else?

Offline Sanabas

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Re: Almost Bankrupt
« Reply #24 on: January 25, 2012, 05:59:43 PM »
The plane will be grounded. You'll get fined heavily, and your CI will take a big hit.

Online schro

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Re: Almost Bankrupt
« Reply #25 on: January 25, 2012, 09:10:54 PM »
The grounding of planes due for C check, especially the smaller ones, is a TEMP measure aimed to increase your cash balance so you can make the bigger changes that you need to be profitable with. If you ground too many planes, your fixed costs for commonality, leasing and staff will eat you for lunch.

caglar35

  • Former member
Re: Almost Bankrupt
« Reply #26 on: January 25, 2012, 11:36:59 PM »
Some more questions.. I need a suggest for the future fleet expansion.

Currently i am operating 2 airbus 320-200 1 airbus 321-100 1 boeing 737-200 adv 4 bombardier crj100-200 series 3 fokker mk50, 5 dc9 and 18 md82-83-87 so which fleet should I consider for future and which ones should I not renew the leasing? Or should I go for 1 type of boein or airbus series_?

Offline alexgv1

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Re: Almost Bankrupt
« Reply #27 on: January 25, 2012, 11:43:20 PM »
Replace all them with A319/320/321  :D
CEO of South Where Airlines (SWA|WH)

Offline LemonButt

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Re: Almost Bankrupt
« Reply #28 on: January 26, 2012, 12:09:21 AM »
Some more questions.. I need a suggest for the future fleet expansion.

Currently i am operating 2 airbus 320-200 1 airbus 321-100 1 boeing 737-200 adv 4 bombardier crj100-200 series 3 fokker mk50, 5 dc9 and 18 md82-83-87 so which fleet should I consider for future and which ones should I not renew the leasing? Or should I go for 1 type of boein or airbus series_?

Considering all the variables, I would dump your A320, B737, and DC9 fleets and replace with the MD80 series aircraft.  You are going to have a hell of a time getting A320 and B737 to consolidate whereas the MD80 is readily avail.  You have 10 aircraft across these 3 fleet types--dumping 3 fleet types will pay for any additional costs you'll incur flying the MD80 (higher fuel costs mainly).  Once you're consolidated, then phase out the MD80 for new A320 or similar.  Until then though, you need to focus on getting short term costs down.

I'd also recommend ditching the CRJs for more Fokker 50 if they have enough range.  CRJs are the quickest way to bankruptcy as they consume approx 2x the fuel of a prop alternative.  Looking at the used/new market, I'd recommend shutting down the routes of range for your Fokker 50 to take over from the CRJs and wait until you can get your hands on a few Dash-8 which are fast, efficient, and can fly 1000nm.

caglar35

  • Former member
Re: Almost Bankrupt
« Reply #29 on: January 26, 2012, 08:44:58 AM »
Guys but how to cancel C check do you have any idea,*?

Offline JumboShrimp

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Re: Almost Bankrupt
« Reply #30 on: January 26, 2012, 08:48:29 AM »
Guys but how to cancel C check do you have any idea,*?

I don't think you can do it individually, only through a global setting.  And it can be dangerous.  Suppose you are unable to connect to AWS for a few days.  Your airline can crash in that time...

caglar35

  • Former member
Re: Almost Bankrupt
« Reply #31 on: January 26, 2012, 08:52:00 AM »
But I need it because i have some old dc's that their leases are expiring soon and I do not wanna waste money and just remove all do schedule and ground them.
So no possibility?

caglar35

  • Former member
Re: Almost Bankrupt
« Reply #32 on: January 26, 2012, 08:53:24 AM »
Yeah, I guess I got it. I just remove the tick in the box in the settings so no more automatic C check.

Offline JumboShrimp

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Re: Almost Bankrupt
« Reply #33 on: January 26, 2012, 09:07:53 AM »
But I need it because i have some old dc's that their leases are expiring soon and I do not wanna waste money and just remove all do schedule and ground them.
So no possibility?

If they are expiring soon, and you are not planning on either flying them or performing checks, just running down the leases, your best option is to terminate the lease.  It is cheaper than having them grounded and paying full lease payments.

duffann

  • Former member
Re: Almost Bankrupt
« Reply #34 on: January 26, 2012, 12:57:51 PM »
You are saving my competitor in Morocco  ;D

caglar35

  • Former member
Re: Almost Bankrupt
« Reply #35 on: January 26, 2012, 01:03:42 PM »
No! Wait a bit i will come back more strong than ever in 1 month game time!

duffann

  • Former member
Re: Almost Bankrupt
« Reply #36 on: January 26, 2012, 01:06:17 PM »
its tomorrow in real time :o

caglar35

  • Former member
Re: Almost Bankrupt
« Reply #37 on: January 26, 2012, 06:32:18 PM »
Unfortunately I am not going well. I tried hard going from -20 million to -13 million but now again loss every week.

Online schro

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Re: Almost Bankrupt
« Reply #38 on: January 26, 2012, 06:49:12 PM »
Unfortunately I am not going well. I tried hard going from -20 million to -13 million but now again loss every week.

I don't think you understand how the income statement works and general expenses timing of the game. Your most current week will often show a loss because the full week's staff payments happen on Tuesday, so a loss a couple days is normal for ALL airlines - its the end of week figure that matters.

Once we disregard the current week, you actually made money the two weeks before, and only lost money before that because you paid for a C check (about 2 million) and it was a B check week (reduced revenue  - 3 million less)).

 

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