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Author Topic: Why so difficult??  (Read 602 times)

Benny_Ben1989

  • Former member
Why so difficult??
« on: August 25, 2012, 08:44:29 AM »
Hi guys,
Just started here at MT7, decided to come over from DOTM4. Why is making profit seemingly so difficult? I'm based out of Dortmund with a lot of domestic routes that require 80-100 pax per day. I have 3 ATR72-500's at the minute, so quite new, fuel efficient a/c which are more than capable of filling the void's on these routes, however, every day I lose money in the region of $100,000 - $250,000??

Got some basic advertising, which has so far over the course of 1 month boosted my C.I from 5 to 9. I have decreased fares by 5%.

Any help?? I have done with my airline as I have with 'Manila Air' from the beginners world and 'Dalian Air' from DOTM4. Both of those were/are successful.

Many Thanks,
Ben :)

Offline EsquireFlyer

  • Members
  • Posts: 1327
Re: Why so difficult??
« Reply #1 on: August 25, 2012, 09:48:11 AM »
It's the new game engine. With a RI of 0 when you first start, you can only attract 10%-20% of the demand. So if you start out flying 80-100 pax routes, you will only get 8 pax to 20 pax per flight initially. It will build up to the full demand as your RI increases.

So you have to (a) start by serving huge routes, or (b) use lower fares to start, since price actually matters now, and gets you more pax, or (c) invest in route marketing, or (d) just save your start-up cash for a while to cover your losses initially, and expect to lose money for a few months, at least until your RI gets up to 30-40 or higher.

Benny_Ben1989

  • Former member
Re: Why so difficult??
« Reply #2 on: August 25, 2012, 10:22:39 AM »
Thanks, Just as an example, there is a route from Dortmund for 200pax per day to Stuttgart (I believe) and there is an airline flying it once a day offering 120 of the 200 available seats. I've decided to serve it twice daily...is that too soon?

Offline Troxartas86

  • Members
  • Posts: 877
Re: Why so difficult??
« Reply #3 on: August 25, 2012, 10:26:35 AM »
Try to set up a couple of routes without competition and wait a while until LFs start going up. Use route advertising if possible. This game was always about patience but that's true now more than ever. Trying to expand too far too fast could easily put you in the red while you wait for proper LFs. I nearly did this myself in North America Challenge; I had my 3rd plane sitting on the tarmac for weeks while I sat with too much debt to open routes for it until the first two planes finally started making money.

Long story short, nowadays you want to save a bit of your starting cash to cover a month or two of losses until RI goes up to decent levels.

Benny_Ben1989

  • Former member
Re: Why so difficult??
« Reply #4 on: August 25, 2012, 12:58:54 PM »
Thanks alot guys, I had just ordered a further ATR72-500 to operate routes to large airports such as Frankfurt, Amsterdam, Milan...after this plane arrives I will leave them to sort themselves out and re address the situation in a few real time days :)

Many Thanks,
Ben :)

Offline EsquireFlyer

  • Members
  • Posts: 1327
Re: Why so difficult??
« Reply #5 on: August 25, 2012, 02:23:57 PM »
Thanks, Just as an example, there is a route from Dortmund for 200pax per day to Stuttgart (I believe) and there is an airline flying it once a day offering 120 of the 200 available seats. I've decided to serve it twice daily...is that too soon?

Once daily for now. When you are getting high loads on your first flight (>60% or >80%, or something around there, depending on your tolerance for loss making) then add a second.

 

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