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Author Topic: Suggestions?  (Read 1254 times)

eleventy40

  • Former member
Suggestions?
« on: July 29, 2012, 03:01:58 AM »
So, my query is that I have opted for a single aircraft fleet, or that's what I am working for. My question is, I currently have 727 fleet with 5 planes making quite a remarkable profit, much unexpected and bought strategically with C checks in mind. I also have an additional fleet of 737s-100/200, which has just been worked down to one single plane, the plane however is making amazing profit as well, $400,000 a week average. Is it worth keeping even with the high costs or should I replace it with another 727 to hopefully have continued success and greatly reduce fleet commonality costs. Any thoughts would be greatly appreciated.

Offline LemonButt

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Re: Suggestions?
« Reply #1 on: July 29, 2012, 03:31:54 AM »
You should be replacing your 727 with newer/more efficient aircraft, not the other way around.  You have 2 fleet types of 737--you should work towards dumping your 727 for more 737 or 757 if you're going to stick with Boeing.  The MD-90 is also a good choice.  In real life, Nashville has heavy traffic from Southwest Airlines, which uses 737 almost exclusively, so you shouldn't have a problem flying out of BNA with 737 (or A320).

eleventy40

  • Former member
Re: Suggestions?
« Reply #2 on: July 29, 2012, 04:18:40 AM »
And that't the thing, the 737 was the backbone of my company when I started, but I was running into the issue of availability or accessibility rather. The planes are not easy to find on the used market, as of late anyways. I turned to the 727, which is somewhat easier to find as a kind of crutch while I try to build up a newer fleet, if I can find a sufficient number of 737s I will most definitely get rid of all of my 727s. I am also in the process of getting a 737-300, but thats not arriving until next month. The 757s, I know they are a bit more expensive but do you think the added benefits would outweigh the higher leases and outright cost of the aircraft?

ucfknightryan

  • Former member
Re: Suggestions?
« Reply #3 on: July 29, 2012, 04:31:03 AM »
As you already have the 737-300 on the way I would aim to replace your 727s with 737-400s since they're almost the same size.

eleventy40

  • Former member
Re: Suggestions?
« Reply #4 on: July 29, 2012, 04:35:44 AM »
Should I aim to replace them with the 737-200s for now? I have large control over my regional area but my income still isnt huge, about $800,000 a week profit, would you suggest switching to primarily the 200s and just slowly building the newer fleet? Thats the only financially viable way I can see, I am completely out of debt and would rather only take a loan if its absolutely necessary.

Offline LemonButt

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Re: Suggestions?
« Reply #5 on: July 29, 2012, 04:38:50 AM »
The B737 and A320 are some of the best aircraft in the game.  I personally hate using them for the reason you just mentioned--availability.  You can start ordering MD-90 to replace your 727 and be sitting pretty as it is usually the last production line for efficient aircraft to fill up due to the obsession with anything Airbus/Boeing.  The B717 also is usually to get reasonably fast off the production line.  The Tu-204-120 is also a good option instead of B757 (higher maintenance costs, but is only 60% the price with similar performance).  The Fokker 100 is also a solid option, especially based out of BNA.

eleventy40

  • Former member
Re: Suggestions?
« Reply #6 on: July 29, 2012, 04:52:06 AM »
So do you think that even with my airline only being a smaller/medium size, I could still pull a decent profit with the MD-90s and their lease? To be honest, its looking like the path I need to take is simply replacing the 727s with the 737-200s and then slowly phasing those out with the 737-3/4/500 fleet, financially, because I don't want to get caught with a transition and huge fleet commonality costs all while trying to get rid of some fleets and growing others, at max I want 2 fleets right now, until a sustainable profit for faster growth is achieved. I know that you are obviously much more experienced with this game than myself, but is that a beginners mistake or is that a decent plan?

Offline LemonButt

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Re: Suggestions?
« Reply #7 on: July 29, 2012, 05:02:58 AM »
Surviving at a smaller airport means frequency.  If a player from a large airline starts flying to your hub, you need to use smaller planes flying more frequently to beat them because they are likely going to have a higher CI etc. than you.  Therefore, if you only want 2 fleet types (smart) then you should have at least 2 different size planes, such as 100 seaters and 150 seaters.  The leases on the MD-90 are irrelevant because you'll be flying them on the big routes with heavy demand and they'll pay for themselves, especially with C class income avail.

I am currently at CVG and flying MD-80s (120/150 seaters).  I'm going to replace my 150 seaters with MD-90 and my 120 seaters with smaller aircraft (60-90 pax TBD).  You should also take into consideration future expansion.  If you plan on opening a base where you need larger planes to compete, you should consider using similar sized planes at your primary base to keep a tight commonality.

You can also lease less fuel efficient planes, such as the MD-80, and then buy them at the end of the lease at a discount.  The fuel costs are what kill you later in the game, but if you don't have a lease you can afford fuel when it gets really pricey without going BK.  The only other thing to check is plane size--you may need to fire and rehire pilots, which will hit morale and your CI.

eleventy40

  • Former member
Re: Suggestions?
« Reply #8 on: July 29, 2012, 05:21:44 AM »
Something I just thought of though, is with me having bought this 737-300, or leasing it rather, it will be difficult to do the large and small aircraft approach without massive downsizing, as it is, going the cheaper route, I would have 1 -300, and all of my 727s and getting rid of my -200, would it be smart to only have one large aircraft and going with a lot of smaller ones? The other problem with this too is I would be drawn into 3 fleets because the market supply of smaller decent sized airplanes is rather skim, and I would have to order new ones.

eleventy40

  • Former member
Re: Suggestions?
« Reply #9 on: July 29, 2012, 05:32:27 AM »
And in the defense of the 727s, they are all making amazing profits, about $60,000 a day average on each, which makes me hesitant to push them out so quickly, I think I could make it work to build in a entirely new fleet while taking advantage of the older ones, even after 2 c-checks they arent hurting me too bad, at all, havent had any profit losses in the past month even with the checks, am I just getting incredibly lucky? (Note, the 727s are not consider future fleet plans at all, more of just a means to build up, and control the stranglehold I have on most routes.)

Offline LemonButt

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Re: Suggestions?
« Reply #10 on: July 29, 2012, 05:56:34 AM »
They are only making amazing profits right now because of limited competition, low fuel prices, and the fact that we are only 6 months into the game and you prepay 4 months worth of lease when you lease an aircraft.  It looks like C-checks run about $1.5 million AND the aircraft isn't flying for 3 weeks, but you're still paying staff etc.  Also, I assume they are in poor shape since your punctuality is only at 71%.  If you have less than 80% punctuality your CI goes down, which means you're basically throwing money away on marketing.

The big problem is you don't know when competition will show up and cut your load factors in half and/or fuel will spike.  You have time, but the sooner you can make the transition the better, especially considering everyone else is following the same strategy.  If you think production lists are long now for the 737, wait a few years and there will be a 5+ year lead time.

eleventy40

  • Former member
Re: Suggestions?
« Reply #11 on: July 29, 2012, 06:04:50 AM »
So pretty much the sooner I can get into the newer fleet and convert my 727s into smaller aircraft like the Fokker 100, the better?

Offline LemonButt

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Re: Suggestions?
« Reply #12 on: July 29, 2012, 01:31:25 PM »
So pretty much the sooner I can get into the newer fleet and convert my 727s into smaller aircraft like the Fokker 100, the better?

Yes, but the bigger challenge is getting the ~150 seaters due to demand so you should focus on switching over the big fleet type first :)

eleventy40

  • Former member
Re: Suggestions?
« Reply #13 on: July 29, 2012, 01:59:14 PM »
Well, its looking like my entire fleet conversion won't be happening for awhile :P  737 orders are already at a year production, what other comparable fleet could I use?? I noticed the 6/7/800 fleet, would this be very bad to use or would this fill in quickly as well?

Offline LemonButt

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Re: Suggestions?
« Reply #14 on: July 29, 2012, 02:11:08 PM »
The only comparable aircraft to the 737 is the A320, which is equally bad when it comes to lead time.  The newer 737s are going to fill up even quicker.  As I mentioned, your best bet is to stock up on the MD-90 if you don't want to wait years for delivery :)

eleventy40

  • Former member
Re: Suggestions?
« Reply #15 on: July 29, 2012, 02:14:06 PM »
Yeah, I believe I will do that, wish I hadnt bought that stupid 737 now!

Offline LemonButt

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Re: Suggestions?
« Reply #16 on: July 29, 2012, 02:23:20 PM »
If you buy the 737 outright as soon as you can, you can sell it on the used market for a huge premium.  You should try to get it out of your fleet ASAP if you are only going to have one because you can't overcome the fixed overhead costs with only one aircraft.  Good luck.

eleventy40

  • Former member
Re: Suggestions?
« Reply #17 on: July 29, 2012, 02:30:53 PM »
Thanks! Ill put an update when I see where things are headed.

Offline maya666

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  • Posts: 67
Re: Suggestions?
« Reply #18 on: July 31, 2012, 01:14:14 PM »
Since this topic also deals about the 737 I didn't want to open a new topic about it. I'm currently doubting whether or not to lease new 737-800 and -700 or to just lease new -400/-300
I'm don't have much expanding room for the -900 so that's not a reason to transition. And the fuel saving of the -800 isn't much compared to the lease saving of the 400.
What would be a got option? Or leasing a totally different AC?
Already have some Saab 2000 on order for the weaker pax demand routes.
Thanks.

eleventy40

  • Former member
Re: Suggestions?
« Reply #19 on: July 31, 2012, 09:10:51 PM »
From my point of view, I would say it would be easier to use the 6/7/800 fleet, if you are unwilling to wait, or, if you are willing to wait I think it would be alright to go ahead and use 3/4/500 fleet, its just that the backlog is almost 4 years last time I looked for a few of those planes. I guess it all really just depends on your current fleet and how quickly you need to transition into a new fleet, or want if its not a total necessity like it is for myself and my older planes. Their are a few other planes I can think, previously mentioned in this post, it just depends on how much availability you want with your planes and the demand/ need for more seats on your routes.

 

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