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Author Topic: B737-700ER  (Read 718 times)

Offline Jackson

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B737-700ER
« on: February 24, 2012, 12:35:03 PM »
Ok so similar question as before. This aircraft has a max range of approx 4000nm. It carries about 120pax i think. Can't i still make a decent profit with routes between 3000nm-3800nm? Its just that, TTPP in real life can make alot of money from domestic routes to and from the caribbean but the level of demand is disgustingly low for all under 1000nm routes. So I need to sqeeze as much as i can from what is on offer. I live close to LHR/EGLL and can easily start something successful from the start but to me that is wa to easy plus my heart lies with back home. So ANYWAYS, lol, any opinions? Where is the WISE and the ALL KNOWING GREAT SCHRO when you need him  ::)

Offline schro

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Re: B737-700ER
« Reply #1 on: February 24, 2012, 01:20:01 PM »
I would advise against 120 pax routes greater than 2000nm in mt era games unless u have so much money coming out your ears and nowhere else to fly.

given the high per seat operating costs and that revenue does not scale linearly with distance flown, it will be marginally profitable at best for todays fuel prices, and a loss as they increase. You already know my opinion of the 737-700 from the previous thread.

the same opinion also applies to the 762 ;-)

Offline Jackson

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Re: B737-700ER
« Reply #2 on: February 24, 2012, 03:21:43 PM »

Yh. I totally hear what you are saying. I have ordered 5 E190AR's and will put them to work on the eastern seaboard of the USA and routes in S.America under 2000nm. I will monitor the income with those before thinking of leasing anymore and I plan on owning all the small a/c in my fleet. I will forget the B737ER unless I have more money than I know what to do with. Last but not lease, I plan to replace the B762s with leased and purchased B788s as of 2011 so I hope the fuel spikes don't affect me too much.

Offline schro

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Re: B737-700ER
« Reply #3 on: February 24, 2012, 03:26:23 PM »
Yh. I totally hear what you are saying. I have ordered 5 E190AR's and will put them to work on the eastern seaboard of the USA and routes in S.America under 2000nm. I will monitor the income with those before thinking of leasing anymore and I plan on owning all the small a/c in my fleet. I will forget the B737ER unless I have more money than I know what to do with. Last but not lease, I plan to replace the B762s with leased and purchased B788s as of 2011 so I hope the fuel spikes don't affect me too much.

I haven't looked at the demand from your base, but in the interim, I'd suggest trying to get 763s or 764s to cover the work the 762s are doing. Leases will probably be a bit higher, but revenue potential is significantly higher.  It is a long time until 2011...

Offline schro

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Re: B737-700ER
« Reply #4 on: February 24, 2012, 03:38:40 PM »
Ok, I figured I'd look into how your'e using your fleet a bit. I've got a few more points to hopefully assist your thought process(es).

1. Using 762s on routes that can be covered by 737/A320/MD/757/etc planes is typically not a very good idea. They seat 210 pax and burn fuel like its going out of style. A 757 will carry 201 pax in a 15/186 configuration and do all of those routes just as well for less per trip. An A321 should be about 15-174 if memory serves correctly and burn even LESS fuel per trip. Usage of the 762 for the US flights that you have simply isn't advisable as fuel prices increase.

2. Typically, when you have a high cost per seat plane like the 762, you'll want to match it with high revenue per seat routes, such as those with heavy premium demand. Looking at LFPO and LPPT, they barely have 10 C demand per day. That means your C cabin is 50% full on a good day. For that length route in the 762, it needs to be full if at all possible. Ideally, you'll want the 762s on routes where you can reconfigure them to capture more premium revenue, as that will boost their profitability.

Offline Jackson

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Re: B737-700ER
« Reply #5 on: February 24, 2012, 09:51:59 PM »
Ok, I figured I'd look into how your'e using your fleet a bit. I've got a few more points to hopefully assist your thought process(es).

1. Using 762s on routes that can be covered by 737/A320/MD/757/etc planes is typically not a very good idea. They seat 210 pax and burn fuel like its going out of style. A 757 will carry 201 pax in a 15/186 configuration and do all of those routes just as well for less per trip. An A321 should be about 15-174 if memory serves correctly and burn even LESS fuel per trip. Usage of the 762 for the US flights that you have simply isn't advisable as fuel prices increase.

2. Typically, when you have a high cost per seat plane like the 762, you'll want to match it with high revenue per seat routes, such as those with heavy premium demand. Looking at LFPO and LPPT, they barely have 10 C demand per day. That means your C cabin is 50% full on a good day. For that length route in the 762, it needs to be full if at all possible. Ideally, you'll want the 762s on routes where you can reconfigure them to capture more premium revenue, as that will boost their profitability.

Very true. Believe it or not, (regarding point 1.), I really did consider my options and took 752/3s, 320 family and the most likely of all, the 737s into consideration.

Unfortunately at the time my firm was established, there were hardly any good ones or non at all and as for brand new??? I was and still am looking at a looooooong wait. Maybe not for the !B757s but even they will have to be replaced by more fuel effient a/c and at the time there wasnt enough on the used market for 'fleet commonality. To make matters worse, I already had competition @ Piarco. So, afraid that he/she would create much more revenue than me and expand to the point where (for the limited choices of aircraft I had) I couldnt find routes without them being there (and lets not 4get one of the most important rules about new airlines and competition) I had to avoid him.

The only way of doing that AND being able to outgrow him was to tap into the European market. There is heavy competion at some destinations but I found a few untouched. So the next Q was...what can fly there? In the end, considering that there were (not alot but) a few B762s avail', I chose them. Also, the reason I decided to attack the North American routes with the 762s was for two reasons; 1. Fleet Commonality and 2. They would generate additional income until the 737s and 190ARs arrive.

Now however, (and this is why I can't thank you enough for your realistic impressions), I am going to really consider ordering long ranged B767-300ERs to replace the 762s and chase after Europe, the West Coast of USA, Africa and Asia markets. Maybe even 764s. 

 Just one thing tho, I am a RR fan and would choose RR over GE any day (although I do Looooove the mighty GE90 series). So I would rather have the RR RB211s and Trent1000. My concern now is when and how do I convert. And add even MORE stress, why did i go and lease my first 3 Boeing 767-200s than were averaging 15 years....for ANOTHER FIFTEEN YRZ? So it looks like unless I have the money to buy and sell or just terminate, i gotta choose GE : (

Offline diskoerekto

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Re: B737-700ER
« Reply #6 on: February 24, 2012, 10:34:48 PM »
except for role playing purposes or personal preferences, engine commonality has no noticeable effect.
<img src="http://www.airwaysim.com/game/Banner/107/576/" alt="" width="450" height="90" border="0" />

 

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