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Author Topic: Negative money  (Read 663 times)

Online chris06

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  • Posts: 284
Negative money
« on: December 29, 2012, 11:16:46 AM »
Hi i would like to know if anyone has any tips for getting out of negative money quickly. thanks :)

Offline mtnlion

  • Members
  • Posts: 479
Re: Negative money
« Reply #1 on: December 29, 2012, 12:44:15 PM »
You could try to improve your average load factor but be sure that you don't end up losing money. E.g. decrease one plane's ticket prices by 10$ and follow how it effects the overall performance. On the other hand, you could raise the ticket prices on those routes where the load factor is above 95% or something.

Also remember that shorter the routes more rotations one plane can make which often equals to higher income. I don't know if it's too profitable to fly long routes with small props. You also seem to have quite many destinations? Why not first add frequencies to the old ones? Opening new destinations increases the costs.

exchlbg

  • Former member
Re: Negative money
« Reply #2 on: December 29, 2012, 06:54:38 PM »
I agree. You already made the wrong decisions where to fly to and with what airplane. Your loadfactors are very bad.
I wouldnīt have started any of those 20-ish routes, they donīt earn money, unless you can fly about 6-7 a day, and only then you would break even. Your prop routes are quite long, I know from former games that a turboprop must serve 4 routes a day to make a win, 3 is break even at best, that means without competition.
I fear you wonīt ever come out of the red, because there is no other way to get quick money than selling ownd planes or getting a loan from the bank.....

mean123

  • Former member
Re: Negative money
« Reply #3 on: December 29, 2012, 07:12:29 PM »
With the long prop routes you have I agree with exhlbg, but I have to disagree with the previous comment when talking about number of routes per aircraft. I fly fourteen prop aircrafts with 3 routes a day and ALL make between 120K and 390K a week profit (thats a b check week too). So even after other costs, they all maing decent profit. I also use 1 prop aircraft flying 2 routes a day, this made 381K on a b check week so they can definitely be profitable. Just not advisable in your situation. To make a decent profit doing this you need at least 70% LF in my experience but the better ones are in the 90% range of course. I would not fly 3 route aircraft with ANY competition using props. I would restart im sorry to say.

Offline Sanabas

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  • Posts: 2161
Re: Negative money
« Reply #4 on: December 29, 2012, 08:08:13 PM »
Hi i would like to know if anyone has any tips for getting out of negative money quickly. thanks :)

Sell a plane.

Other than that, there are none, other than to already be reliably profitable before you go into negative money, and waiting it out.

If you don't own a plane, and aren't making enough money week to week, then going more than a tiny amount into the red means you won't be coing back. Time to restart, and avoid what sent you there in the first place, most likely.

Shorter routes are better for turboprops, certainly. But routes you can reliably fill from the start make even more difference, especially in MT where you can use turboprops that are fast, with standard seating & good range. Q400, ATR 72, Saab 2000 with 48/2 or 51 seats. 5 daily short & full routes will beat 3 longer routes. But 3 longer routes that are all full will be better than 5 half full short ones. Depends where you are, and what routes you have available.

 

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