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Author Topic: A question about Yield/Revenue  (Read 676 times)

Offline Marksw76

  • Members
  • Posts: 116
A question about Yield/Revenue
« on: March 15, 2013, 01:49:00 PM »
How do these columns work? Is it best to fly a smaller aircraft (i.e 737) on a longer (over 1500nm) route to get the most profit or is it better to fly on a shorter route (i.e less than 450nm)

I realise it would be bad form to fly a larger aircraft (i.e 767/ L1011) with higher fuel burn on a shorter route where passengers are only likely to pay around $100 for a seat, yet the aircraft might have a fuel burn of, say, 3500 - 4500 kg/hour

I remember playing a game last year when I BK'd after trying to fly a A300 three times a day on a 800nm and was simply undercut by a competitor flying one 737 several times in one day.

What are peoples advice?


Offline alexgv1

  • Members
  • Posts: 2184
Re: A question about Yield/Revenue
« Reply #1 on: March 15, 2013, 02:06:35 PM »
In terms of yield, the shorter the route, and the higher you set your ticket prices, the higher the yield will be.

Of course you still have to get passengers into seats to get any revenue from this yield  ;D
CEO of South Where Airlines (SWA|WH)

exchlbg

  • Former member
Re: A question about Yield/Revenue
« Reply #2 on: March 16, 2013, 01:48:50 AM »
Of course you will loose against someone offering more flights with a smaller aircraft on short routes. All costs are smaller with a smaller plane if you just look at one flight.
Advantage of bigger plane only on longer  routes where small planes get a penalty or canīt go without tech-stop, or on monopoly routes to/from slot-restricted airports to transport as much PAX per flight as possible.
Smaller aircraft on the other side produce more overhead costs per flown passenger, thatīs why the smaller ,the more flights per day are needed to break even, if you look at whole business.
« Last Edit: March 16, 2013, 01:55:15 AM by exchlbg »

 

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