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Author Topic: Load factors - how to improve?  (Read 541 times)

Offline alpha

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Load factors - how to improve?
« on: February 10, 2014, 11:17:55 AM »
Hello, I'm new here and this is my first full game. My load factor has been decreasing in the past several (real) days. Most of my routes now have LF below 55 and this is not a problem to specific routing or timing. I have tried to decrease the prices but it seems price management only affects short run. What are meaningful ways to increase the LF? Another question is, what LF should I maintain to make profit? I have already seen loss weeks with LF = 55%.

Online [ATA] Hassel

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Re: Load factors - how to improve?
« Reply #1 on: February 10, 2014, 03:48:36 PM »
CI (Company Image) and RI (Route Image) has the biggest influence on how large a LF you will end up with on your routes. You gain these my marketing campaigns.

Looking over your Airline it looks like you already know the basics of how the game works, unfortunately you are based together with one of the biggest AWS players and this can of course make it more challenging.

Shouldn't it work out then I would simply try to restart in another location, also I would suggest to start out with no more than 3 AC types. this will reduce your cost on fleet commonality and go straight to the bottom line

 

Offline LemonButt

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Re: Load factors - how to improve?
« Reply #2 on: February 10, 2014, 04:06:33 PM »
LF is irrelevant IMO.  My airline in GW2 has 400+ aircraft with a 60% overall LF (ranked 246 out of 265 currently) and I am earning 5-10% net profit/week with high fuel prices.

The big difference being the actual cost of operating an aircraft.  If you can fly a 300 seater to a destination for the same costs as a 200 seater, does it matter if your LF is 66% instead of 100%?  Thus there is no optimal LF level to be profitable.  One of the reasons I am so profitable at 60% LF is that I refuse to fly with high load factors.  If I am flying to a destination with a LF > 85% I raise the prices.  100% LF at $100 ($100 EV) generates less revenue than 85% LF at $120 ($102 EV) and your costs go down flying less pax (less pax = less handling/baggage/fuel/etc).

If you are a beginner, you should base at a secondary airport to "learn the ropes" before trying to go up against the big boys (they will come to you when they start opening bases).

Offline CUR$E - God of AirwaySim

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Re: Load factors - how to improve?
« Reply #3 on: February 10, 2014, 04:20:09 PM »
Hello alpha,

I'm well aware of your airline and therfore also the mistakes you have made (and maybe why you made them) as well as the positive decision you have made

However, I'm not able to give you further help as you are my most direct and biggest competitor. But should you end up restarting your airline somewhere else I would be very happy to mentor you and give you feedback on what i have observed until now

Offline Infinity

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Re: Load factors - how to improve?
« Reply #4 on: February 10, 2014, 05:46:28 PM »
Hello, I'm new here and this is my first full game. My load factor has been decreasing in the past several (real) days. Most of my routes now have LF below 55 and this is not a problem to specific routing or timing. I have tried to decrease the prices but it seems price management only affects short run. What are meaningful ways to increase the LF? Another question is, what LF should I maintain to make profit? I have already seen loss weeks with LF = 55%.

It is impossible to name an LF you should aim for. Obviously higher is better (up to a certain point), but some players are profitable with 40% when others need 70%+. It always depends on your environment, you can't generalize this.

Your LF will have suffered because the competition buffed up capacity on the routes. That's a perfectly normal thing especially early in the game. You should not overestimate the influence of pricing. It is usually not a smart thing to reduce prices at all, and even less so if you are the weaker competitor.
The only way to sustain a good load factor in the long run will be to spread yourself thin, so don't serve the full demand on routes, fly few flights on trunk routes, etc.
The moment you or the competition begin competing for market share, your LF will plummet. So if you are not confident you would win an all-or-nothing battle with a competitior, you should rather remain small to medium sized and aim for maximum profitability - a good LF will happen on its own that way, as it's only a display metric and not of any direct relevance for the profitability of your company.

 

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