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Author Topic: Always loosing money why?  (Read 431 times)

DavidThompson

  • Former member
Always loosing money why?
« on: January 20, 2014, 09:10:37 PM »
New airline.. have got 3 Airbus A320 leased aircraft based in EDDH. I am only flying routes where passenger demand a day is 150+ and I am the only airline on that route.

However it seems to be that the "delay" is 75% due to tech aircraft the ones I leased were only 1 year old tho...

does anyone have any suggestions? My airline is called Thompson Air

Regards

Offline LemonButt

  • Members
  • Posts: 1895
Re: Always loosing money why?
« Reply #1 on: January 20, 2014, 10:06:50 PM »
Age doesn't matter--condition does.  What % condition were the aircraft?  Anything below 90% is borderline and anything lower than 80% is really bad news.  A 1 year old aircraft that was operated by a now bankrupt airline that couldn't afford to maintain it could easily be in the 60-70% range.

Offline ezzeqiel

  • Members
  • Posts: 375
Re: Always loosing money why?
« Reply #2 on: January 21, 2014, 11:23:05 AM »
A 75% delay is not a serious condition, as long as you keep your company image in positive numbers, and as long as you have no competition (as you stated) you should not loose money... numbers between 80 and 85 works fine, and marketing does the rest... 75 is not that far...
Delays tho, makes you loose both company image AND money on those... you wanna keep that number above 2%...


As lemon butt sayed, plane age only affects maintenance costs; for everything else you wanna check the plane condition.

I try to never go under 76% condition when I lease, and has always worked for me... you have to balance plane price, condition, C/D checks and age as the most important numbers to check when leasing or buying (in that order). Additionally you can check engines, MTOW (but that's more advanced)


According to the routes, remember when you just open a route, little passengers knows about your route, and initially few people will fly with you... you have to wait until the route has a positive and high "route image", which will raise by itself as time goes by, or can be raised thru marketing (at a cost of course)...

If you put an a320 (156 pax) in a 150 route you will start with 20s Load factors, and slowly build up... I recommend that plane for bigger routes (if this are the first ones), otherwhise you'll have a very slow start...

In my first routes (when the world starts), I usually try to put a plane 1/3 or 1/2 of the total demand of the route as a minimum...


Finally, maximize your schedules... If you put just one flight per plane per day you'll loose money. Try to squeeze as many flights as you can in each of the planes schedules (always keeping and eye on proper turn around times).

Offline zola1h

  • Members
  • Posts: 77
Re: Always loosing money why?
« Reply #3 on: January 24, 2014, 01:58:33 PM »
1. check ur shudel if u use A320 (or A318,A319,A321) i recomend u 65 min turn around time ther is 1,4% chance to lete for thet reason thets realy low if u need few minutes + in shudel maybe u can set 60 min(~4,8% chence to late if i remember corectly) but turn arond time under 60 min in A320 is couz to many late
2. start general campaning to rise ur co image in a start i recomend newspare,bilboard and internet
3. and the most important be patient rout image climbe slowly u can bust with campaning thets not realy important use if u fly rut with high frekvency (4 or more times/day)

 

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