AirwaySim
Online Airline Management Simulation
Login
Username
Password
 
or login using:
 
My Account
Username:
E-mail:
Edit account
» Achievements
» Logout
Game Credits
Credit balance: 0 Cr
Buy credits
» Credit history
» Credits FAQ

Author Topic: Really struggling, some hints would be helpful.  (Read 1031 times)

Offline Pilot Oatmeal

  • Members
  • Posts: 700
Really struggling, some hints would be helpful.
« on: November 21, 2012, 04:43:22 PM »
I have been playing this game for well over a year now.  I've built quite a few large regional airlines, (think my largest was over 150+ a/c) and recently I've found it extremely difficult to earn any money. 

My situation is, I started late in MT, but based myself at a base with very little competition and no one else was based there.  I've always wanted to build a 30 seat aircraft airline and I've started that in this world. 

I have 5 EMB-120s, my average LF is 70% with some of my routes with higher then suggested prices on tickets.  My RI is averaged out at 70, and my CI is quite low at 24.  I have only ever had one profitable week in 6 months of operations, and this to me seems a bit slow.  I am unsure what I am doing wrong.



Any hints/tips would really be appreciated.
Many thanks,
Jordan Oates

exchlbg

  • Former member
Re: Really struggling, some hints would be helpful.
« Reply #1 on: November 21, 2012, 05:41:10 PM »
Sorry, but your income sheet doesnīt tell much about the single routes your serving.I looked into your company as far I could.
Most of the routes you opened you fly with competition. Itīs hard to make a living with 30-seaters or 30ish routes even under optimal conditions, but going against bigger and older airways with your little stingbees wonīt work. It might work so-so if you had all those routes for you and fuel was much cheaper. But with competition, most of those tiny routes are served well over demand, leaving you about flying 10 PAX. That wonīt work out in modern times, only in Jet Age. Look out for chances flying either 5-6 time alone or generally for a bigger plane/routes as a backbone for your airline.

Offline Sanabas

  • Members
  • Posts: 2161
Re: Really struggling, some hints would be helpful.
« Reply #2 on: November 21, 2012, 06:44:50 PM »
Your staff costs are 1/3 of your revenue. Your ground handling/landing/pax/nav fees are 1/3 of your revenue. That doesn't leave much to pay for fuel, leases, maintenance, marketing, etc. You've got 355 staff for 150 seats. 500k/week for 355 staff also feels somewhat high, especially as you only need small? pilots.

Put simply, your overhead, especially your staff, is killing you.

exchlbg

  • Former member
Re: Really struggling, some hints would be helpful.
« Reply #3 on: November 21, 2012, 09:25:54 PM »
Thatīs right, overhead revenue is always a problem with small aircraft airlines.
One other thing as a hint from someone being a small AC operator ,too : donīt open up new destinations too soon one after another, wait, until RI and CI grow for your first routes, until you sample a small revenue, then moving on to the next AC and probably new routes. Serving a destination you can go more than once a day (alone) also helps, because single flight destinations are always much more expensive. Having earned a little more revenue, move on to a bigger aircraft/routes. In my case I went from SAAB320 to ATR 42/72, leaving those being my only fleet.
I also use a lot of micromanagement on fares/leases.
And again, starting small routes with competition from the start would not work, open up somewhere where those routes are totally unserved yet, leaving room on contested bigger ones for later.Regional airline will work, but  surviving initial losses and small revenues later will stay a challenge.
« Last Edit: November 21, 2012, 09:35:21 PM by exchlbg »

Offline Pilot Oatmeal

  • Members
  • Posts: 700
Re: Really struggling, some hints would be helpful.
« Reply #4 on: November 21, 2012, 10:32:22 PM »
Okay guys thanks for your assistance  :), I mean I've done this before, for some reason I just can't seem to replicate my past successes, and its been bothering me.  I shall have another go, if at first don't succeed!

Thanks again,

Jordan

exchlbg

  • Former member
Re: Really struggling, some hints would be helpful.
« Reply #5 on: November 21, 2012, 11:52:48 PM »
Maybe it has something to do with new PAX distribution system. Pax are more touchy about RI/CI and it takes longer until they really accept your offers. So the period of initial losses is longer than it used to be. Thatīs why you need to be more careful with your initial funds, keeping back enough to cover losses. Iīm afraid you expanded too fast to recover easily.

Offline Sanabas

  • Members
  • Posts: 2161
Re: Really struggling, some hints would be helpful.
« Reply #6 on: November 23, 2012, 12:03:56 AM »
I think the new pax distribution system makes it easier to run an airline full of smaller planes. May have to try and make a 30 seater airline at some point...

brique

  • Former member
Re: Really struggling, some hints would be helpful.
« Reply #7 on: November 23, 2012, 12:57:12 AM »
exchblg and Sanabas have it right : your overhead is killing you : basing in Western Europe or USA will do that, its the high staffing costs allied with the 'known' over-staffing for small aircraft issue: Japan is also poor : only solution there (for 30-seaters) I found was to get as many aircraft flying as possible and hope each made enough to help out. It worked, just, but never made enough to get past that point.

I also agree with the notion of building each route-set up to earning something before opening the next set : I aim to get coverage of the fatter routes first where I can get several daily flights in, push the prices a bit when they are developed, and use that income to fund the next mini-expansion : other tip is keep them flying : an extra trip a day is where the profit can really be made, so sweep up the close-in traffic early too.

Flying the small-birds is about micro-managing a lot more aspects of the game : leaving prices at default will hurt you : you either wont fill the seats or you wont earn the maximum from the seats you do fill. : but smart pricing will allow you to bend a few of the 'rules' : early take-offs, red-eyes, late arrivals ; which may be required to fill the schedules, can be made better earners with careful pricing. Check both legs of a route, one may be able to be price-raised, the other, landing after midnite, may need lowering : look at slot costs too, sometimes moving the flight times 10-20mins can reduce costs significantly as you go out of a high-price period.

Red-eyes are our friends : in major airports, you can fly in at night for a very low slot cost and, if demand is big enough, you can fill several flights and earn a nice wedge doing so. You dont need a major slice of the pie, after all, 30-60 seats out of a 1000 demand doesnt need a big market share :)

this is where I differ a bit : its based an advantage smaller aircraft have competing on higher-demand routes ; in that you dont need so much RI to start filling them to decent levels. Larger aircraft, with more seats, need a bigger share to do that.

while you wnat to target virgin routes, don't be always scared of competition : look at the numbers a bit : a demand of 300 means your 30-seater will soon pick-up enough pax, even with a low RI, to start earning well. RI of zero is actually equal to a 20% 'recognition' : so from day 1, 60 of that demand 'know' you. Convince half and you got a full plane. A demand of 50, with a competitor flying maybe a 60 seater is also fair game : match their flight, tweak your prices, and you'll get a decent chunk of that market too. But, a demand of 60 with two competitors already scrapping for it... mmm... leave that one for later.

its a tough way to start an airline, it needs patience and work, but it can be done and it is a nice buzz when achieved.

« Last Edit: November 23, 2012, 01:04:41 AM by brique »

 

WARNING! This website is not compatible with the old version of Internet Explorer you are using.

If you are using the latest version please turn OFF the compatibility mode.