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Author Topic: Need some help  (Read 2060 times)

Fegelein

  • Former member
Need some help
« on: February 25, 2012, 07:31:01 PM »
I'm on my last bankruptcy restart. I thought I had a pretty good thing going. Here's my balance sheet and schedule:

http://i40.tinypic.com/9fnmrk.jpg
http://i44.tinypic.com/33m8y6e.jpg

As you can see, I'm bleeding money pretty badly. Only about 1mil left in the bank. Is there anything can I do or am I just gonna end up out 5 credits and waiting for a new game to start?

I'll share whatever info that I can. I hope no one takes advantage of this to screw me over, I'd really like to learn what I'm doing wrong.

Help!

Offline Colsie123

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Re: Need some help
« Reply #1 on: February 25, 2012, 07:58:36 PM »
I was in a similar situation different game world. I notice you spend a lot on marketing so I would cut marketing just till you are back on your feet. If your paying yourself a salary stop set it to 0. It may only be a small svaing but one that wot have any effect on you in game besides saving money. Your routes are making money which is a good thing.

There is quite possibly other thing I have missed but that is what I can see form a quick glance.

Fegelein

  • Former member
Re: Need some help
« Reply #2 on: February 25, 2012, 08:45:30 PM »
Thanks for the tip. I've lowered the CEO salary to 0.  I'm removing the two Canadian flights. That airplane can be utilized somewhere else better with higher profits.

Offline lunchbox

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Re: Need some help
« Reply #3 on: February 25, 2012, 09:08:37 PM »
In my opinion,

You should drop the Detroit route and utilize that plane on filling up your Indy route.
Plus, your Indy route has no competition, while you hae to worry about American Southern in Detroit.

Hope that helps some 8)

Offline schro

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Re: Need some help
« Reply #4 on: February 25, 2012, 10:44:34 PM »
1. You're flying small props. Revenue potential in a 50 seater isn't all that great, and is challenging in most game world.
2. You're flying 1x daily to a TON of different cities. This increases your overhead costs and makes it harder to be proftiable.
3. I'm guessing you don't realize that the "profit" presented on the route page is only against your variable costs and doesn't include maint, staff, leases, rent, etc...
4. Your loads smell a bit like my dirty laundry. Increasing frequency is a good short term fix, just be careful not to overlap flight times per the manual.
5. Basically, your revenues dont' match your expenses. You're spending 1/3 of revenue on staff - that is HIGH. For reference, I'm spending about 15% of revenue on staff. If you could double your income with the same fleet through utilization and better loads,  all of your problems would be solved....

Fegelein

  • Former member
Re: Need some help
« Reply #5 on: February 26, 2012, 03:17:39 AM »
My Indy flight is my flight with the lowest profit now! I haven't changed it yet, still just the one. What's wrong with Detroit? I've got 40 seats and there's still a considerable amount of traffic that's not covered.

What should I do about the staff? Fire people or lower pay or both?

dvenus

  • Former member
Re: Need some help
« Reply #6 on: February 26, 2012, 03:45:07 AM »
Divide and conquer my friend.

It appears your staff costs are anywhere from 35% - 40% of your overall revenue that is an enormous percentage in any situation for skilled labour. Pilot's and crew are useless without fuel.

I would scale back the routes to your more favourable and those most likely to return high LF's. Bums on seats ultimately win out in the long run.

Be ruthless, load a particular route with seats, cut your staff, cut your marketing and try to survive a month on airfares that cover costs only. It is a p*** of a thing to do, but it happens the world over. Get customer's attention with cheap tickets, gain market share and up your costs. Your LF will drop but the die is cast. You have bought into your route market.

If you can afford it, BORROW MONEY immediately. Give yourself as much of a buffer as possible and survive as long as you can. You should be able to turn this round, fly less routes and be the best airline on the route you fly.

By the way $800 for fuel makes me sad.

Good luck.

Offline schro

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Re: Need some help
« Reply #7 on: February 26, 2012, 04:44:13 AM »
What should I do about the staff? Fire people or lower pay or both?

Your problem isn't too many staff. Your problem is a lack of revenue through load factors/yield and fleet utilization. Work with what you have. Chop the longest routes and replace with multiple copies of shorter routes.

The D8HC is a SLOW plane, so anything beyond a few hundred nm isn't a great idea with it if you want to print money... You _should_ be getting those things on 6+ round trips daily if at all possible.

Fegelein

  • Former member
Re: Need some help
« Reply #8 on: February 27, 2012, 05:26:18 AM »
Guys I've taken some of the advice in here and...

...I've turned Wellington Air Service around! Approx 100k profits two weeks ago, about 15k last week (some maintenance). Load factors are all 60%+ and route profit is all $3000+. So thanks for the advice.

My next question is, I'm kind of regretting the Dash. It's slow and doesn't have the legs I want. If I lease like an MD-80 or something, if I can afford it, will that addition kill my company (again) through breaking up the fleet commonality?

In other words, how long do I have to wait / how many Dash 8s do I have to stick with before I can branch out to another fleet type?

Offline RushmoreAir

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Re: Need some help
« Reply #9 on: February 27, 2012, 05:33:47 AM »
Generally you need at least 10 examples before branching out into a new fleet type, but I would wait until 15-20 with the Dash-8s.  Also, make sure that you have enough money to lease 2 or 3 of the new type in one go before you start leasing them.

Fegelein

  • Former member
Re: Need some help
« Reply #10 on: February 27, 2012, 04:10:58 PM »
Well, the problem I'm running into is that I seem to already be filling up the routes I can be competitive on as it is with 4 Dash 8s. There are, of course, the routes to the bigger cities, but I don't understand if I'm supposed to compete on those or not. I'm talking about stuff like PVD-JFK or PVD-BWI and the like. Any suggestions?

Also, would it be profitable at all to have a flight with third stop in the Dash 8? If you did, say, PVD - ORF - CLT - ORF - PVD, would tickets be sold and passengers exchanged just for the ORF - CLT segment, or is it merely a fuel stop?

Offline schro

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Re: Need some help
« Reply #11 on: February 27, 2012, 04:42:31 PM »
Well, the problem I'm running into is that I seem to already be filling up the routes I can be competitive on as it is with 4 Dash 8s. There are, of course, the routes to the bigger cities, but I don't understand if I'm supposed to compete on those or not. I'm talking about stuff like PVD-JFK or PVD-BWI and the like. Any suggestions?

Also, would it be profitable at all to have a flight with third stop in the Dash 8? If you did, say, PVD - ORF - CLT - ORF - PVD, would tickets be sold and passengers exchanged just for the ORF - CLT segment, or is it merely a fuel stop?

In general, when you're starting out,  you'll want to focus on routes that do not have competition, however, if you've got no options left, then I'd start wading into the waters of more competitive routes to see how you do. The key is to keep growing no matter what, as a 4 plane airline is generally unsustainable once all leasing costs kick in as you're not able to cover the overhead expenses that can be more easily paid for with a larger fleet.

With regards to tech stops, it is fuel only, no passengers get on/off.

Offline RushmoreAir

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Re: Need some help
« Reply #12 on: February 27, 2012, 05:07:16 PM »
You can also serve smaller markets than you might think . . . even with fuel at high-ish prices, the Dash-8 can be profitable on 20-25 pax/day routes as long as you can squeeze four or five of them into one plane's schedule.  Look into airports such as ELM, BGR, HPN, ACY, and the like (sorry if you are serving some of those already, I can't see your current stats as I'm not in MT6).

Fegelein

  • Former member
Re: Need some help
« Reply #13 on: February 27, 2012, 05:17:15 PM »
Alright, I've ordered another Dash 8 and am adding routes in those smaller places. I've gone through everything in my area and I've got 6 of them in total that I can server that are in the 20-40 pax demand market. Beyond that, everything is either below 20 or too far away to be profitable (I assume, since I can only fit in 2-3 300nm routes a day instead of 6).

So, again, this begins the question of: what now? I assume the only thing I can do is give it some time to build up some cash and wait for my established routes RI and my CI to go up, and then start trying to serve the bigger cities and undercut prices?

Offline RushmoreAir

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Re: Need some help
« Reply #14 on: February 27, 2012, 05:50:09 PM »
So, again, this begins the question of: what now? I assume the only thing I can do is give it some time to build up some cash and wait for my established routes RI and my CI to go up

Yep.

and then start trying to serve the bigger cities and undercut prices?

Yes, but don't undercut too much.  10% should give you a nice boost, and when your RI is up to 100, reduce to a 5% or less discount.

Once you have built up a sizable cash reserve ($10-15 million) try expanding into MD-80s, E-Jets, or the like.

Fegelein

  • Former member
Re: Need some help
« Reply #15 on: February 27, 2012, 05:55:52 PM »
Sounds like that'll be boring, just sitting around watching the dollars tick buy...  :-\

Offline RushmoreAir

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Re: Need some help
« Reply #16 on: February 27, 2012, 07:54:07 PM »
Sounds like that'll be boring, just sitting around watching the dollars tick buy...  :-\

Which is why most people start with larger (A320/MD80/737) aircraft and then move into regional aircraft once they have a nice stream of income.

Sulton111

  • Former member
Re: Need some help
« Reply #17 on: February 27, 2012, 10:01:01 PM »
I opted for the domestic market first - it isnt the greatest but with props it means a nice steady flow of cash even with the increasing cost of fuel - but it isnt all that boring you might find the odd hidden gem of a route that lets you print cash but you need these to be close you want at least 5 trips on prop planes but 6 or 7 are obviously a better money earner

Offline Blur CEO

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Re: Need some help
« Reply #18 on: February 28, 2012, 03:42:08 AM »
"Their be gold in that there city boy!"

Offline Colsie123

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Re: Need some help
« Reply #19 on: February 28, 2012, 04:56:12 AM »
I opted for the domestic market first - it isnt the greatest but with props it means a nice steady flow of cash even with the increasing cost of fuel - but it isnt all that boring you might find the odd hidden gem of a route that lets you print cash but you need these to be close you want at least 5 trips on prop planes but 6 or 7 are obviously a better money earner

I;m in a different game world Jet Age but have been following this thread closely for hints and tips as I am still a bit a newbie. Just thought i'd leave a message to give you a bit of confidence I operate three aircraft types one being my 55 seat Hawker Siddleys (Dash 8's of the time), and they make the same (sometimes more) profit than my long haul and medium haul jet fleet, flying routes with 60-70 passengers a day on routes no more than 600nm round trip. So good profit can be made and is to be had on these smaller craft from my experience.

 

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