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Author Topic: When will demand improve?  (Read 878 times)

Offline Karl

  • Members
  • Posts: 156
When will demand improve?
« on: November 19, 2012, 03:32:12 PM »
My airline is dying for lack of demand!

How can any airline survive when demand between major cities is only 10 or maybe 20 passengers per day?

My frustration is that to make any money, one needs an aircraft with at least 40 seats, but the range on such aircraft is very limited.  One can serve all major cities within range very quickly.  Then, one has to turn to markets with only 10 pax per day demand.  These flights eke out a profit, but do not make enough  money to cover C Checks - let alone D-Checks.

Larger aircraft have 80+ seats and are not suitable for most markets.  The number of cities with demand of 50 - 100 are few and far between.  Then, if a competitor enters the market....

How do airlines in this environment expect that they are going to survive with the 707 and the DC 8?

When do we think demand will improve?

Offline freshmore

  • Members
  • Posts: 467
Re: When will demand improve?
« Reply #1 on: November 20, 2012, 01:22:21 AM »
Ahh, that is for the AWS God (sami) to decide!

It is probably already slowly increasing, just got to stick it out like all of us!

Talentz

  • Former member
Re: When will demand improve?
« Reply #2 on: November 20, 2012, 01:44:40 AM »
How do airlines in this environment expect that they are going to survive with the 707 and the DC 8?


The strong survive and the weak perish.

Then I swoop in and take there 707/DC-8 production slots without having to wait... Mahahaahahaha!


Talentz


Offline swiftus27

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  • Posts: 4395
Re: When will demand improve?
« Reply #3 on: November 20, 2012, 02:09:16 AM »

The strong survive and the weak perish.

Then I swoop in and take there 707/DC-8 production slots without having to wait... Mahahaahahaha!


Talentz



This way you get 320s while some are still getting 120s

brique

  • Former member
Re: When will demand improve?
« Reply #4 on: November 20, 2012, 04:35:29 AM »
'Build it, and they will come'

as I see it, the first 1/3 of JA is about positioning yourself for the next 2/3's : staking your claim in a HQ, maybe a base or two : and building a solid foundation, in CI/CV/RI, in cash, loan facility, etc, ready to step-up when demand takes off and all those shiny new jets show up. Surviving until then is part of the game.


Offline Troxartas86

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  • Posts: 877
Re: When will demand improve?
« Reply #5 on: November 20, 2012, 04:17:43 PM »
At this stage you can do just fine with 15-seaters if you can fill them up with short routes. I was flying 34-seat Bristol 170s out of Libya last round and doing just fine. Started ordering brand new CV-240s by year two.

Offline Sanabas

  • Members
  • Posts: 2161
Re: When will demand improve?
« Reply #6 on: November 21, 2012, 05:55:24 AM »
Yep. Can survive on smaller planes in JA quite easily.

And as for not making enough to cover C-checks, there are some tricks to that, depending on what you're flying. The balance of maintenance cost vs lease cost can be VERY different to what it is in later worlds, with bigger planes. For instance the Curtis Commando typically costs about the same amount to C-check (or more, I forget) as it does to lease for 12 months. And there is a practically endless supply. Therefore you should NEVER actually c-check on of them yourself. Go to the market, lease whatever is cheapest, and 10+ months from c-check. 10 months time, lease another, and terminate the lease on the old one. Costs almost nothing, and no problems flying your fleet of 30+ Curtis planes while you wait for f27 or whatever you plan to fly longterm to arrive, without ever paying a cent for heavy maintenance.

brique

  • Former member
Re: When will demand improve?
« Reply #7 on: November 21, 2012, 06:20:23 AM »
Good tip, Sanabas : the loss of revenue while its in the hangar is also a factor to consider in the math and makes your suggestion even more useful.

Offline tcrlaf

  • Members
  • Posts: 336
Re: When will demand improve?
« Reply #8 on: November 22, 2012, 10:32:31 PM »

The strong survive and the weak perish.

Then I swoop in and take there 707/DC-8 production slots without having to wait... Mahahaahahaha!


Talentz



Almost 1000 ordered f-27's....
Some early slots opening would be big $$$ for me!

 

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