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Author Topic: [-] AI broker and Regulations to prevent monopoly of backlogged aircraft  (Read 556 times)

Offline Jackson

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I would like an active broker system that buys brand new planes and actually lease them. It was like this two years back. What happened?

In the RW, buying and leasing planes from construction from their manufacturers is not exclusive to the likes of BA and Emirates. We all know the NG737s and A330s along with B777s sell like hotcakes. We also know of small and medium airlines aquiring brand new POPULAR aircrafts without the 5+ year backlog. There has been many minor tweaks but I haven't seen any big changes since 5 years when I found this game. Still waiting for cargo and private jets.

« Last Edit: December 24, 2013, 07:50:45 PM by sami »

Online Sami

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Re: AI broker and Regulations to prevent monopoly of backlogged aircraft
« Reply #1 on: December 24, 2013, 07:50:39 PM »
AI brokers already buy aircraft from the "popular" manufacturers, but only if there is no queue (or very little).

And the production list system already spreads out the orders so that any single airline cannot glog the prod.line.

Offline Jackson

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Re: AI broker and Regulations to prevent monopoly of backlogged aircraft
« Reply #2 on: December 24, 2013, 08:19:09 PM »
AI brokers already buy aircraft from the "popular" manufacturers, but only if there is no queue (or very little).

And the production list system already spreads out the orders so that any single airline cannot glog the prod.line.

Ok Sami. I understand that but clearly something drastic needs to be done otherwise threads like Frimp's Sales Cap wouldn't exist.

For someone to begin later in any given game, once they have enough paper to purchase/lease new planes, there is already about a 10 year backlog. So they have no choice but to choose alternative types that may be out of production, not entirely suitable for the airline's needs or no where near as efficient as similar aircraft that are current a d relivant for that time period in the game.

JumboShrimp speaks of the balance. When all the mega airlines have met their entire demand. I understand that factor but should it affect others to the poi t that they are forced to make undesired strategic choices that may cost them their airline and credits? Ofcourse not. Hence why there should be a solution to still allow mega airlines based In major hubs to expand as they like whilst removing the current penalty for smaller airlines that simply want a newer, more efficient fleet.

Expansion to meet demand vs newer models to meet fuel and economic climate. Right now, expansion to meet demand is dominating fhe markets. I think if mega airlines want to meet every demand then they should also look to the used market and alternative a/c types. It's lob sided and something has to give to keep both parties happy.

Offline JumboShrimp

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Re: [-] AI broker and Regulations to prevent monopoly of backlogged aircraft
« Reply #3 on: December 24, 2013, 08:46:17 PM »
There another variable in the system that prevents bigger airlines in expanding using alternate fleet groups:

The fleet commonality feature has a bit of a flaw.  Instead of it being a reward - lower operating cost when you own many aircraft of the common fleet type - it is implemented strictly as a penalty.  Penalty for operating more than 3 fleet types.  This penalty is implemented exponentially, based on number of aircraft you own.

While you own small number of aircraft, the penalty is small, barely perceptible.  But once you are between 100 and 200 aircraft, the penalty starts to be seriously felt.  And when you get to 300, 400, even 1000 aircraft, this penalty will bankrupt your airline.

This is the reason big and successful airlines concentrate their purchases in 2-3 most popular fleet types.

Offline Jackson

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Re: [-] AI broker and Regulations to prevent monopoly of backlogged aircraft
« Reply #4 on: December 24, 2013, 09:02:05 PM »
Wow. Yeah I had no idea. I thought the more planes you owned, that individually make good to exceptional profits, meant the easier it is to cancel this penalty. I understand probably about 80%  of all the inner workings and politics of this sim now.

I guess it's a huge knockon/domino effect. If Sami changes one aspect, it affects another. Hence why we haven't seen other simulated aspects of the RW come into play yet.

ucfknightryan

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Re: [-] AI broker and Regulations to prevent monopoly of backlogged aircraft
« Reply #5 on: December 25, 2013, 12:01:45 AM »
Wow. Yeah I had no idea. I thought the more planes you owned, that individually make good to exceptional profits, meant the easier it is to cancel this penalty. I understand probably about 80%  of all the inner workings and politics of this sim now.

I guess it's a huge knockon/domino effect. If Sami changes one aspect, it affects another. Hence why we haven't seen other simulated aspects of the RW come into play yet.

Just to give you an example of the penalty JumboShrimp mentioned, my MT airline has 500 aircraft at the moment and 3 types.  Adding an aircraft of a 4th type increases the weekly cost of my other 3 types by $40m.

Offline LemonButt

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Re: [-] AI broker and Regulations to prevent monopoly of backlogged aircraft
« Reply #6 on: December 25, 2013, 03:18:17 AM »
There another variable in the system that prevents bigger airlines in expanding using alternate fleet groups:

The fleet commonality feature has a bit of a flaw.  Instead of it being a reward - lower operating cost when you own many aircraft of the common fleet type - it is implemented strictly as a penalty.  Penalty for operating more than 3 fleet types.  This penalty is implemented exponentially, based on number of aircraft you own.

While you own small number of aircraft, the penalty is small, barely perceptible.  But once you are between 100 and 200 aircraft, the penalty starts to be seriously felt.  And when you get to 300, 400, even 1000 aircraft, this penalty will bankrupt your airline.

This is the reason big and successful airlines concentrate their purchases in 2-3 most popular fleet types.

Yea, I'm fairly certain sami didn't design the commonality algorithms with the thought of airlines ever have 1000 aircraft and the commonality system is an issue that just makes the problem worse.  When it hurts so bad to have 2 fleets instead of 1, airlines end up forced to order 10 years worth of A320 instead of adding an extra fleet type with a BAe 146, MD90, etc.  Ultralong game worlds takes it to the next level since airlines end up flush with capital for many aircraft launches.

Offline LemonButt

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Re: [-] AI broker and Regulations to prevent monopoly of backlogged aircraft
« Reply #7 on: December 26, 2013, 03:59:23 AM »
Here is another reason we should have leasing department staff.  Sirion Airways in DOTM (http://www.airwaysim.com/game/Info/Airline/View/24/129/) has 0 aircraft flying, 145 aircraft leased out, 20 aircraft for sale, and 158 aircraft on order.  He is running a pure brokerage and has 6 employees, a CI of -100, and has a 98.33% profit margin ($918 million in profit on $934 million in revenues last quarter).  That is over $600 million/year in profit per employee.  By comparison, the most profitable company in the US earns just under $1 million/year in profit per employee: http://qz.com/114867/interdigital-most-profitable-company-per-employee-not-apple/  What he has done is pretty impressive, but he's also jamming up the production lines by ordering aircraft he'll never fly.  Yes, he is listing them on the used market, but he is blocking legitimate airlines from getting the aircraft direct and I would expect that airlines will pay a premium on the used market.

Offline Mr.HP

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Re: [-] AI broker and Regulations to prevent monopoly of backlogged aircraft
« Reply #8 on: December 26, 2013, 08:48:28 AM »
I was wondering what was up with that guy, was he trying to overcome -100 CI? Now the answer is clear, he wants to play brokerage purely  8)

Offline 11Air

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Re: [-] AI broker and Regulations to prevent monopoly of backlogged aircraft
« Reply #9 on: December 26, 2013, 10:58:55 AM »
The answer is to use the Maintenance rule to assess 'types at a base' rather than in the airlines fleet.
Maintenance crews would be Base Bound. If that base flies one type then they will be particularly efficient on that type, so a new Base can be Intercontinental Orientated, or be a regional carrier only, (delivering, of course, to the InterC Hub).
Sami, is that possible to do fairly easily.

The other way is to allow a/c to select their maintenance base, which is not necessarily their Route Base.

 

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