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Author Topic: Help me avoid BK?  (Read 1314 times)

Offline EsquireFlyer

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Help me avoid BK?
« on: May 23, 2012, 05:26:27 PM »
Hi everyone..

I started this game late, and currently have four 707-420s as well as one F28 (was supposed to be two but couldn't find a second).
Despite the high fuel prices (I'm hedged at 155 at the moment vs. 166, and have an 8% off contract for $56k/month) I have been able to stabilize my profits at around $140k/week.

But I have a C check coming in 2 weeks! Because the only four 420s that were available when I joined had C-checks ranging from 5 months to 10 months out, and I bought them all. And the 5 month one is coming.

I think that the $600k price of the C check, combined with the loss of the revenue from that plane, will BK me. Currently, my cash on hand is slightly negative (-$200K) although I have net profits of $140k/week, so my cash should be positive within 2 weeks--but I won't have the $600K needed for the C check.

Is there anything I can do to avoid BK at this point? Should I fire the people staffed on that plane while it is in C check?
Should I just let the plane sit unused until I have the $600k cash for a C check?

Or should I just reset and start again?
I have been in game for about 5 game months now, and have a reasonably good deal on fuel, and am finally getting near-full load factors on my planes. But I can't afford the C check, as far as I can tell.

Thanks!

Offline Emaw Jones

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Re: Help me avoid BK?
« Reply #1 on: May 23, 2012, 06:00:51 PM »
Stick it out would be my suggestion, but than - I'm 5 mil in the hole!!!

My Pax is going up and I just did a 3% faire increase to see if I can suck up some of the cost.  The C checks will burn cash, so lets just see what happens.


mar88

  • Former member
Re: Help me avoid BK?
« Reply #2 on: May 23, 2012, 06:03:26 PM »
If you haven't reset your ticket prices to default I would start there.

This may not help but just looking at your routes I would drop the trans-Atlantic routes and try to fly domestically with the 707s. Your Paris - Orly route only has 100 pax demand on a route that is over 2900NM long while offering 169 seats.  :-\ I would highly suggest twice daily flights to KSEA and/or 4x daily flights to KSFO. The routes are shorter (less fuel) and there is decent Business class demand. What is your configuration on the 707s?

I wouldn't fire anyone because of the damage you would take to your CI.  :)

What are your lease lengths also on the 707s?
« Last Edit: May 23, 2012, 06:07:57 PM by mar88 »

Offline EsquireFlyer

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Re: Help me avoid BK?
« Reply #3 on: May 23, 2012, 06:08:46 PM »
Thanks for the responses so far!

If you haven't reset your ticket prices to default I would start there.

Yup, I do this monthly.

This may not help but just looking at your routes I would drop the trans-Atlantic routes and try to fly domestically with the 707s. Your Paris - Orly route only has 100 pax demand on a route that is over 2900NM long while offering 169 seats.  :-\ I would highly suggest twice daily flights to KSEA and/or 4x daily flights to KSFO. The routes are shorter (less fuel) and there is decent Business class demand. What is your configuration on the 707s?

My 707s are mostly configged 3/10/149, except for one that is 180Y (couldnt afford F and C install).
The F and C cabins typically run 50% full.

The Paris Orly roundtrip actually earns me an average of $20,000 in profits each day (after deducting fuel and landing fees, but before personnel costs and maintenance). Based on that, would you still drop the route? Can I actually earn more than that flying to SEA or SFO? (SEA and SFO have competition also, whereas Orly is a monopoly route.)

I wouldn't fire anyone because of the damage you would take to your CI.  :)
Yeah I really don't want to fire either due to the CI hit. But I am thinking about it, because if the alternative is BK/reset, a CI hit is better than a total BK  ;D

Offline EsquireFlyer

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Re: Help me avoid BK?
« Reply #4 on: May 23, 2012, 06:12:33 PM »
Only about 1 year left on the 707 leases. They all expire in July 1980..I was hoping to have L1011s or DC-10s by then, but am having a hard time finding any L1011s used, and can't afford new DC-10s.

mar88

  • Former member
Re: Help me avoid BK?
« Reply #5 on: May 23, 2012, 06:17:35 PM »
It is a risk but I probably would still give it a shot because while there is competition it also means less fuel used, plus you can fly those routes more than once a day making better use of your advert money. The biggest risk is the initial route image loss and the fact that you would probably take a loss originally on the route. If you really want a monopoly on a route (something that will always eventually go away  :( ), you could look at KPDX, KSJC, and KOAK, shorter routes than the Atlantic routes with more demand.

Offline EsquireFlyer

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Re: Help me avoid BK?
« Reply #6 on: May 23, 2012, 06:25:11 PM »
Hmm OK, thanks. Those may be better routes (although previously when I flew domestic, it seems the ticket prices are lower per the same distance? is that right?).

There is no quick way to get the $600K to pay for the C check and keep the plane flying though, right?
And you have to pay for C checks with cash up front, not by going into the red, right? Or can you do it by going into the red.

mar88

  • Former member
Re: Help me avoid BK?
« Reply #7 on: May 23, 2012, 06:31:33 PM »
The ticket prices on those routes will be lower but the fuel costs will be too. (easily noticed with 707s)

There is no quick way to get cash, best idea I have is to restructure some routes.  :-\

If the checks are set to be performed automatic then they should still be processed even if you are in the red. (learned that once by holding onto a DC-8 in the last DoTM and removing it from routes to try to save an airline but forgot to turn off C-checks. oops  :-[ )

Offline Sami

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    • AirwaySim - Are you the next Richard Branson?
Re: Help me avoid BK?
« Reply #8 on: May 23, 2012, 06:41:01 PM »
Did you have a Mentor already?

Offline alexgv1

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Re: Help me avoid BK?
« Reply #9 on: May 23, 2012, 06:42:22 PM »
Did you have a Mentor already?

ME!  ;D

I've announced my unavailability until next Monday to my friend EsquireFlyer already.
« Last Edit: May 23, 2012, 06:51:48 PM by alexgv1 »
CEO of South Where Airlines (SWA|WH)

Offline EsquireFlyer

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Re: Help me avoid BK?
« Reply #10 on: May 23, 2012, 06:45:27 PM »
Did you have a Mentor already?

Yes. alexgv1 has been helping me greatly, and his help is the main reason I have even survived long enough to see a C check! But he is busy with real life this week. (LOL don't you hate it when real life cuts into your game time?)

mar88

  • Former member
Re: Help me avoid BK?
« Reply #11 on: May 23, 2012, 07:06:42 PM »
Well if Alex is ever unavailable feel free to shoot me a message, although Alex is the better player.

Offline alexgv1

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Re: Help me avoid BK?
« Reply #12 on: May 23, 2012, 07:08:10 PM »
Well if Alex is ever unavailable feel free to shoot me a message.

Thanks for offering to help my mentee buddy, much appreciated.

Mar88 is a really strong player I completely back the advice he will give you if you get in touch :)
CEO of South Where Airlines (SWA|WH)

Offline EsquireFlyer

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Re: Help me avoid BK?
« Reply #13 on: May 23, 2012, 07:16:53 PM »
Thanks, mar!!

If C checks can be auto-done in the red, then I am not as close to BK as I thought, since i still make (small) weekly profits and just don't have cash on hand.

If I drop Orly and add one of the California routes, will I see a short-term increase or decrease in income? I think to cover the C check cost, I need to keep my short-term income up (is that right?). And then maybe I should add the Calif. routes as my next route, rather than dropping Orly now? What do you think?

Offline mtnlion

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Re: Help me avoid BK?
« Reply #14 on: May 23, 2012, 07:30:45 PM »
You've got some good advice already, but basically you should always try to start with average size planes like B737, Trident, DC9 etc. Build a fleet of at least 4-10 of one type and schedule them to fly 3-5 flights every day. If you want to go for B707s or DC8s you would need a route with high demand and between 2700-3400nm so that one plane can fly it daily.

But yeah, if I were you I'd get rid of the other fleet type (F28) because if there's less than 4-6 of the second fleet type they aren't making any money because of the fleet commonality costs. I'd also invest on marketing and CI because you have competitors and old airplanes.

mar88

  • Former member
Re: Help me avoid BK?
« Reply #15 on: May 23, 2012, 07:50:46 PM »
It I think rescheduling domestically as much as possible would be best simply for range and fuel considerations as well as pax demand. Personally I would choose a route with 300 pax and a competitor over a route with 100 pax and no competitor simply because I can fly the other route more than once and it allows me the option of using multiple flights per day on one route. I agree with mtnlion that the F.28 is probably hurting your commonality costs with just one aircraft and I would highly recommend flying it on one route multiple times a day rather than a bunch of different routes.

I've located an airport you can use as a base if you end up having to BK here. Not a giant airport but it has good options for learning the game and getting used to playing it.

Offline EsquireFlyer

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Re: Help me avoid BK?
« Reply #16 on: May 23, 2012, 08:00:18 PM »
Yeah I want to drop the F28 fleet also. But the termination cost is quite high (a few hundred K), and currently the F28 seems to be breaking even (i.e. making a positive profit after fuel/staff, but before the "common" admin costs, and the admin costs then wipe out 90% of the profit). In that situation, should I keep the F28 running, or drop it and take the hit?

mar88

  • Former member
Re: Help me avoid BK?
« Reply #17 on: May 23, 2012, 08:07:00 PM »
How much are the daily profits on the routes, the monthly lease cost, and the commonality costs for the airframe and the engines?

Offline EsquireFlyer

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Re: Help me avoid BK?
« Reply #18 on: May 23, 2012, 08:27:55 PM »
How much are the daily profits on the routes, the monthly lease cost, and the commonality costs for the airframe and the engines?

The daily profits are:

wait lol I'm not posting that in public.

I will send you a PM!

mar88

  • Former member
Re: Help me avoid BK?
« Reply #19 on: May 23, 2012, 08:44:58 PM »
Oops, got too focused on numbers and stopped thinking about competition.

 

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