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Author Topic: Extremely low load factor on sizeable routes.. :/  (Read 468 times)

Offline DaBasileus Rex

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Extremely low load factor on sizeable routes.. :/
« on: October 17, 2013, 06:27:33 AM »
Okay, so launching several DC-6B routes to destinations that have roughly 50-80pax demand is killing me. Why is it that load-factors are only around 25% after a year or more of service with a plane that is about the exact size for the demand? This is yielding bad $$$.  :'( Beyond this, any tips to rapidly slash expenses...or increase revenue for an airline that hasn't seen a profit in a long long time..? :-\

Cuyukahonic Airways
HQ: Philadelphia

PS. It seems that being unable to log in for several days cost the airline dearly..when I logged back in CI had dropped from 82 to -88!! And many routes had been cancelled due to expired C checks..which weren't conducted when the airline went temporarily deep in the red   :-\
I've been able to cut spending as much as possible but am still losing 2.5M a week, and need to stop that right away. Would it be best to try and slash as many unprofitable routes as possible (-5-20K a week) or try one last expansion by opening a new base with about 20 planes currently sitting idly by..couldn't schedule them on routes for awhile due to debt...any help is appreciated.

Offline Teadaze

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Re: Extremely low load factor on sizeable routes.. :/
« Reply #1 on: October 17, 2013, 07:40:55 AM »
Quote
new base with about 20 planes currently sitting idly by.

long haul requires CI, while having negative CI is deadly
 
assume you are talking about your cairo route, you have techstop and they do have max load penality.

your quickest way to reduce expense is to kill fleet group. your fleet size and 5 fleet group is killing you........ reduce to 3 and you should be in much better shape.

not logging in for a few days, not making money and having plane(20!) sitting doing nothing is a recipe for disaster

given the type of plane you are owning(very very old plane), unless you can take a sizable loan to correct the stuff I mentioned(especially fleet group) or scrapping them I think you might be better off to restart.

as one of the largest operator of dc6b in this game world... I suggest getting rid of them asap.... I understand the lease is cheap, but the mx is killing you (especially d check).
« Last Edit: October 17, 2013, 07:45:38 AM by Aoitsuki »

Offline DaBasileus Rex

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Re: Extremely low load factor on sizeable routes.. :/
« Reply #2 on: October 17, 2013, 08:13:07 PM »
Thank you for the tips!! I have just about eliminated 1 fleet group-the Comets, from my fleet by either switching all routes to 737s or putting them on the used market.

As for the DC-6s I see what you mean...I don't know if I could drop that entire fleet without losing 1/3 of my route map but that might be necessary...problem is, half of my sh planes (convairs) are about to D-check too in about a year...do you think eliminating sh or mh would be better? The only thing I worry about with my DC-6s is they are holding slots in tight European airports, which I would lose by dropping the fleet..
Good news for now is CI has improved to +58..bad news, see above lol... 

Offline Teadaze

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Re: Extremely low load factor on sizeable routes.. :/
« Reply #3 on: October 18, 2013, 12:39:33 AM »
i can't see your financial situation but this is probably what I will do if I am in your shoe.

drop the convair, I know they are lessor of your problem(might make more money then your dc6b also), but like you mentioned dc6b is harder to get rid of... also North america route has tones of slot and you can easily reapply them. Not to mention the d check is coming up. But in theory right now your book should be better already by losing that 5th fleet.
Convert those convair to 737, even lease them. But I would focus on Moving those dc6b > dc8 as you do not have any dc10 ordered... they should be able to last you for another few years.

Offline DaBasileus Rex

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Re: Extremely low load factor on sizeable routes.. :/
« Reply #4 on: October 28, 2013, 07:24:29 AM »
Hey Aoitsuki I apologize for my late reply. I've been following your advice mostly about trying to get rid of the DC-6s..down to 11 from 35 previously, and the convairs are mostly good now til 1980ish due to a last min loan just enough to D-check about three quarters of them-I figured that would be cheaper than a new (5th) fleet again. Over 25% of the staff have been sacked, some planes leased out, service cut entirely to 15 cities and reduced at several others...  :-\ 
     Unfortunately, despite recording a marginal profit for the first time since early 1972 game time, overall money keeps going into the red..idk anymore, expenses are millions less per week, and revenue is actually up overall..but pax numbers are down still. I keep getting loans cuz the airline is nearly 20 years old but its starting not to matter.

At this point, the CEO is considering collecting his millions and retiring from the Jet Age lol or...totally scrapping 70% of the slots and routes in possession, eliminating the DC-6s, remaining convairs that will expire soon, as well as the DC-8 fleet-half of which will D-check in the next year. Basically starting over as a regional airline but not actually bk-ing..not sure if that's a good idea tho. Thank you for your advice so far and if you have any other suggestions plz let me know.

 

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