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Author Topic: 2nd aircraft  (Read 681 times)

Offline _martijn

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2nd aircraft
« on: July 07, 2013, 06:34:09 AM »
Hello everybody!

This is my 2nd airline. The first got bankruptcy by growing too rapidly when not even make any profit. So, I'm a bit more careful than before. When should I acquire a new lease aircraft to expand? Is investing in a new airline a good idea while not even making profit with your first a/c?


Offline knobbygb

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Re: 2nd aircraft
« Reply #1 on: July 07, 2013, 09:05:36 PM »
Generally, you will NEVER make a profit with your first aircraft.  The economies of scale dictate that.  All the overheads of running the company and staff etc. are easily eaten up by the small amount of income you will have.  It also takes quite a while for the routes to mature enough to turn a profit.  In general I'd say you have to have at least THREE or FOUR aircraft just to survive.  The key is to expand as quickly as possible (within reason) at the start, before you run out of cash.  It can be quite an art.  If you don't have enough money to get several aircraft right away then I'd say start with smaller/cheaper aircraft.  Get a few of the SAME TYPE and fly them to as FEW different destinations as possible (to keep staff costs down) - i.e. where there is demand for more than one daily flight.  Once you reach a level where you have a regular profit coming in you can then expand in a more controlled manner.

In summary - at the start, use every $ you can lay your hands on to get those first few aircraft flying (remember to leave money for slots).  Once you are making a profit, slow down a bit and consolidate your position.
« Last Edit: July 07, 2013, 09:10:25 PM by [SC] knobbygb »

Offline _martijn

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Re: 2nd aircraft
« Reply #2 on: July 07, 2013, 09:44:11 PM »
Thank you for your response. I'm going to acquire some a/c.

Offline ezzeqiel

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  • Posts: 375
Re: 2nd aircraft
« Reply #3 on: July 08, 2013, 01:17:13 AM »
(remember to leave money for slots)

I'd put a lot of attention to this... always leave money to be able to schedule the planes you lease... research the routes you want, and keep the money neccesary to buy the slots...

It's very bad in the beginning to lease a lot of planes and then run out of money to schedule them...


  • Former member
Re: 2nd aircraft
« Reply #4 on: July 08, 2013, 11:49:02 AM »
Like always there´s something good and bad about every decision you make. It depends on your general playing attitude: fast,aggresive and risky or slow,gentle and secure.
Most important is what you do with those acquired planes: if you use them economically for tasks they´re designed for, with optimal scheduling and little to no competition, micro-manged pricing and obeying fleet commonality,appropiate marketing and maintenance,they will turn out a profit which you can use to expand.If you make mistakes with those mentioned points, you will lose.


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