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Author Topic: How can I make money off of small aircraft?  (Read 795 times)

Offline Atlantische Zeiler

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  • Posts: 81
How can I make money off of small aircraft?
« on: February 05, 2013, 01:49:14 AM »
EMB 120, Saab 340, Metro, etc.  I have always gone bankrupt shortly after opening with these types of small aircraft, and I'm not 100% sure why. Possibly Marketing Costs?

Offline Sanabas

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Re: How can I make money off of small aircraft?
« Reply #1 on: February 05, 2013, 02:02:23 AM »
Marketing, staff, not using them very efficiently are the probable culprits. 30 seaters are not easy to use.

Don't know if your previous airline was in the same place as your current one, but 30 seaters would be a really bad choice for that airport.

exchlbg

  • Former member
Re: How can I make money off of small aircraft?
« Reply #2 on: February 05, 2013, 02:27:48 AM »
I would suggest to really read and analyze all numbers that the income sheet gives you.And since you donīt give us any clue how much marketing you were using, it stays in the state of wild guess.
There are a whole bunch of other costs that apply, some of them regardless of size of plane, so itīs perfectly clear that a 30-seater canīt possibly earn near the revenue of a medium jet. There are places where they are a good choice, but only if route pattern fits them, flying them two times a day to some lonesome airports 6 hours away is a guaranteed quick BK.Also buying them in numbers right at the start (because they seem so cheap) will cost you hundred of thousands for slot costs alone, money you will probably need until routes slowly establish.
Revenue will stay small and you will have to use it wisely for further expansion, so no good choice for beginners,little mistakes can kill you quick.

Offline chiveicrook

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Re: How can I make money off of small aircraft?
« Reply #3 on: February 05, 2013, 11:47:33 AM »
It seems it is only possible to start 30-seater airline in 3rd world countries where staff costs are low.

my 10 plane Yak-40 airline out of Prestwick pays 300k a week in staff costs. Then comes fuel at 200k a week, leases at 160k a week, ground handling at 130k a week, maintenance 115k, passenger fees at 70k...etc.

my planes make between 30k and 100k a week... route fees are extreme too. My airline roughly breaks even week-to-week but C checks will most likely bankrupt me.

Without at least 1 significant route served with larger planes it is almost impossible to start an airline and grow. Surviving is possible though.

Offline Sanabas

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Re: How can I make money off of small aircraft?
« Reply #4 on: February 05, 2013, 09:13:37 PM »
You need VERY low wages for a 9 seater airline.

High US wages are fine for a 50 seater airline, if you run it well.

For a 30 seater airline, it'll be easier somewhere wages aren't really high, like Eastern Europe. It'll be easier again somewhere wages are really, realy low, like Vanuatu. But I think it'd still be doable in the US/UK/etc, provided you found the right airport. You want HQ to preferably be size 3 or less, though could do size 4, and with as many 30+ pax routes to other size 4 or smaller airports inside 300 NM. Maybe somewhere like Rotterdam, Eindhoven, or Brussels South would be good choices if you want to use a high-wage country. Not sure if the US would have a suitable airport, because of the way the demand algorithm works, size 3 to size 3 tends to only have a small demand, though there might be exceptions. 


Offline Atlantische Zeiler

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  • Posts: 81
Re: How can I make money off of small aircraft?
« Reply #5 on: February 05, 2013, 11:16:04 PM »
Thank you all for the info- I didn't know AWS gives different wages for different countries...

 

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