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Author Topic: Wonderful LF's on default fares, yet airline is going in the hole fast...  (Read 1152 times)

L1011fan

  • Former member
I have 5 C-46's, 1 Comet to join the Jet Age and do a transcon from my base at DCA to LAX, and 1 Ambassador that I had to grab for route opportunities that we're just waiting to be had. Not a single C-46 available for quite some time and I used the "call" feature several times. I think the Comet was a natural progression. We all want jets, I think. One Ambassador can't make that much difference can it? Or is it something all together different. Is it fares? I don't know. ???

moberg

  • Former member
I have 5 C-46's, 1 Comet to join the Jet Age and do a transcon from my base at DCA to LAX, and 1 Ambassador that I had to grab for route opportunities that we're just waiting to be had. Not a single C-46 available for quite some time and I used the "call" feature several times. I think the Comet was a natural progression. We all want jets, I think. One Ambassador can't make that much difference can it? Or is it something all together different. Is it fares? I don't know. ???

Yes, the Amassador was a pretty big mistake unless you plan on getting a much larger fleet of them. 

You also have a very high image. How much are you spending on marketing?

57.8% is not a "wonderful loadfactor"

L1011fan

  • Former member
Well the LF"s went up rather quickly I should've said. Well, at this point I'll limp along and play with the fares a bit. There is always starting over as well.

moberg

  • Former member
I'm not sure how much playing with fares does (unless you have competition).  Raise the price and you get less people, lower them and each person gives you less money. If your planes are actually full, then you definitely need to raise them, but thats not a problem you have right now.  Your fleet of 1 Comet is actually probably doing much more damage to you then the one Ambassador. Have you checked your commonality costs?  How do they compare to your aircraft's profits? 

Offline Jona L.

  • Members
  • Posts: 3361
57.8% is not a "wonderful loadfactor"

On a newly opened route from ATL to BOS I had an LF of 8.7% in eco class (0% in C class) on the late return which mean 9 Pax. The flight yielded me 7$ :) So it is possible to make cash with less than that.

Asides my average LF is 56% and I make 1.4M/week with default prices...

cheers,

Offline Troxartas86

  • Members
  • Posts: 877
On a newly opened route from ATL to BOS I had an LF of 8.7% in eco class (0% in C class) on the late return which mean 9 Pax. The flight yielded me 7$ :) So it is possible to make cash with less than that.

Thanks to your post I am now shuttling three people on a 40 seat plane 98 miles every night for $158 profit! That's a 7.5%LF!  8) Better than sitting on the ground.

Offline Jona L.

  • Members
  • Posts: 3361
Thanks to your post I am now shuttling three people on a 40 seat plane 98 miles every night for $158 profit! That's a 7.5%LF!  8) Better than sitting on the ground.

Wow, good profits!
my problem is that the route is pretty long and the 377 sucks a lot fuel.... but the LF is now up to >60% as RI has increased ever since :)

Offline swiftus27

  • Members
  • Posts: 4395
Thanks to your post I am now shuttling three people on a 40 seat plane 98 miles every night for $158 profit! That's a 7.5%LF!  8) Better than sitting on the ground.

complete disagreement.  Those 'profits' do not include fixed costs.   You are losing money on these flights and would be better off with grounded planes.

Offline Jona L.

  • Members
  • Posts: 3361
complete disagreement.  Those 'profits' do not include fixed costs.   You are losing money on these flights and would be better off with grounded planes.

The fixed costs are on a monthly base and those 158$ just help compensate these. The costs aren't risen by the number of flights, but by the umber of planes that have at least 1 route, thus if he doesn't use a sole plane for that single route the costs aren't changed...

wtdawg

  • Former member
The fixed costs are on a monthly base and those 158$ just help compensate these. The costs aren't risen by the number of flights, but by the umber of planes that have at least 1 route, thus if he doesn't use a sole plane for that single route the costs aren't changed...
Maybe I'm wrong, but don't you also have extra staff costs as well?  Plus the slot charges?

Offline swiftus27

  • Members
  • Posts: 4395
The fixed costs are on a monthly base and those 158$ just help compensate these. The costs aren't risen by the number of flights, but by the umber of planes that have at least 1 route, thus if he doesn't use a sole plane for that single route the costs aren't changed...

gate attendants, baggage handlers.... and more are not calculated into a route's profitability.   

Jona, we've discussed in the past how a fleet of 772s ALL showing a profit on the My Planes page can actually bankrupt an airline. 

 

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