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Author Topic: Oversupplied Route  (Read 655 times)

Offline rettir

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Oversupplied Route
« on: March 01, 2014, 02:45:41 PM »
I received the following message.
Notification from the Anti Monopoly Bureau,

The Game Rules state that airline is not allowed to oversupply routes with excess seat capacity to allow fair competition. The automatic checking system has found some of your routes to be in violation of these rules (you provide too much capacity on the routes, and are exceeding the limits set forth in the rules).

Please check these routes and reduce their capacity immediately so that they are no longer oversupplied against the rules. If changes are not made within 24 hours the system will close down these routes.


Routes in violation of the rules:
ZA055, VIDP - VTBD  View route  Route planning
ZA057, VTBD - VIDP  View route  Route planning
ZA053, VTBD - VIDP  View route  Route planning


I've shut down route 57.
Now this route is being supplied by 3 competitors each with one flight. This seems to me to be fair competition. In fact the other 2 airlines are bigger in aircraft, passengers carried & profit margins. So how can this be unfair competition?
Just curious Sami if one of this competitors reported this to remove me from this route.

Offline Troxartas86

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Re: Oversupplied Route
« Reply #1 on: March 01, 2014, 04:13:38 PM »
The system triggers this message automatically. You can't fly more than 200% of potential demand regardless of how you are doing it, either with one over-sized plane or with multiple flights. Use the seat-blocking feature to get your numbers down to appropriate levels. You might also want to split the flights up by day; I have several that warrant two flights a day but have to use seat-blocking on weekends because demand is so much less on Saturdays for example.

With three airlines all providing maximum capacity for a small amount of demand, it may not even be worthwhile to fly the route.
« Last Edit: March 01, 2014, 04:16:03 PM by Troxartas86 »

Offline rettir

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Re: Oversupplied Route
« Reply #2 on: March 01, 2014, 06:43:43 PM »
"With three airlines all providing maximum capacity for a small amount of demand, it may not even be worthwhile to fly the route."

maybe so. But that should be my decision.IMO

Offline Troxartas86

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Re: Oversupplied Route
« Reply #3 on: March 01, 2014, 09:10:20 PM »
"With three airlines all providing maximum capacity for a small amount of demand, it may not even be worthwhile to fly the route."

maybe so. But that should be my decision.IMO

By all means if it's making money or hurting your competitors, fly the route. But if the demand on Saturday, the worst day, is say 50 pax, you can't have more than 100 seats for sale. That's why you may want to break up your schedule by day if you have the time for that. I know I don't so my max supply is tied to Saturday demand. Every airline flying that route is under the same restriction so if they are oversupplying, the game will be sending them the same warnings you are getting.

Competition ultimately comes down to a wide range of factors like the times you fly, age and type of planes, speed, company image, route image and pricing. That is what will determine your market share when everyone is providing the maximum amount of seats. You will never get 100% of the demand, especially not in a three-way split but you could take enough to make the route no longer worth it for them.

Offline [ATA] Hassel

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Re: Oversupplied Route
« Reply #4 on: March 02, 2014, 07:09:55 AM »
"With three airlines all providing maximum capacity for a small amount of demand, it may not even be worthwhile to fly the route."

maybe so. But that should be my decision.IMO

You where asking for help and someone gave you advice, whether you follow it or not is up to you but there is no need to be impolite in your responds....

Looking at the route in question I can give you following advice.

you have 3 flight in one week with two flights on the same day. you should spread out your flights so you have at least one flight per day before scheduling a second flight on the same day. The day where you fly twice has a high supply and would result in a low LF for you on this route and poor profit.

Best regards
Hassel

Offline CUR$E - God of AirwaySim

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Re: Oversupplied Route
« Reply #5 on: March 02, 2014, 12:08:16 PM »
you have 3 flight in one week with two flights on the same day. you should spread out your flights so you have at least one flight per day before scheduling a second flight on the same day. The day where you fly twice has a high supply and would result in a low LF for you on this route and poor profit.

maybe so. But that should be his decision.IMO




 ;D :P ;D

Offline rettir

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Re: Oversupplied Route
« Reply #6 on: March 02, 2014, 01:31:08 PM »
Troxartas86: "With three airlines all providing maximum capacity for a small amount of demand, it may not even be worthwhile to fly the route."

maybe so. But that should be my decision.IMO

[SC} Hassel: "You where asking for help and someone gave you advice, whether you follow it or not is up to you but there is no need to be impolite in your responds...."

I can see where my response appears to be impolite. My error in not being clear.

What I meant was that the decision to fly the route should be my decision rather than automated server computer's. Especially as I am going against larger more profitable competitors.

On further reflection -- What I still do not know if oversupplied routes are automatically cancelled? Or if the warning is merely a trigger to bring to Sami's attention the situation. In which case Sami can then decide if it is a situation of larger more profitable airlines are attempting to grind smaller newer airlines into dust & bankruptcy. Or it is a situation of roughly equal competitors battling in the marketplace over market share.
 Hopefully I will receive further enlightenment on the automatic cancellation question.

In any case, I offer apologies to Troxartas86 if he or she was offended by my response. I had no intention to offend.


Offline Kadachiman

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Re: Oversupplied Route
« Reply #7 on: March 02, 2014, 02:03:01 PM »
Automation Task vs. Manual Intervention

It is an automated message that Sami will not be aware of nor will he be made aware of it, end result if you do not correct the oversupply then you will automatically lose the allocated slots.....its in the coding and not an administrators task

Oversupply definition

Basically if you had a pax demand of 100 there could be up to 14 airlines providing 199 seats each day and no-one will get an oversupply message as this is not oversupply even though you will have close to 2800 seats for 100 pax, the oversupply message is only for a particular airline not the group
- 7 airlines max at each end of the route @ close to 200% each = 14 airlines supplying 199 seats = no oversupply (also no profit, but that is a different question)

Your airline must be individually oversupplying the route to receive this warning
the problem will be in your scheduling - somewhere

1. check pax demand in both direction
2. check your departure and arrival times on each day scheduled
- e.g. depart 23:00 hrs Sat arrive 15:00hrs Sun = Sun supply
- depart 5:00am Sun arrive 21:00hrs Sun = Sun supply
- even though you may think it looks like Sat & Sun supply

Hope this helps
« Last Edit: March 02, 2014, 02:12:35 PM by Kadachiman »

Offline rettir

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Re: Oversupplied Route
« Reply #8 on: March 02, 2014, 03:28:26 PM »
"Automation Task vs. Manual Intervention

It is an automated message that Sami will not be aware of nor will he be made aware of it, end result if you do not correct the oversupply then you will automatically lose the allocated slots.....its in the coding and not an administrators task

Hope this helps"

Yes Thank you.

Offline Sanabas

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Re: Oversupplied Route
« Reply #9 on: March 03, 2014, 12:36:51 AM »
What I meant was that the decision to fly the route should be my decision rather than automated server computer's. Especially as I am going against larger more profitable competitors.

It is your decision. The only restriction is that you're not allowed to supply more than double the demand. If you get a warning, that's because you ARE supplying double the demand. In virtually every case someone gets a warning and thinks they're not actually supllying double, the reason is because they fly at different times of day, and so the outbound leg has 1 flight per day, but the return leg has 2 flights on one day, no flights on another day.

Quote
Hopefully I will receive further enlightenment on the automatic cancellation question.

If you leave the routes open, you will. They'll be shut down automatically.

Quote from: kadachiman
2. check your departure and arrival times on each day scheduled
- e.g. depart 23:00 hrs Sat arrive 15:00hrs Sun = Sun supply
- depart 5:00am Sun arrive 21:00hrs Sun = Sun supply
- even though you may think it looks like Sat & Sun supply

That is Sat & Sun supply. Only departure time matters. It's the return legs that will be the problem, if there's a 2 hour turn, then the first plane departs at 1700 Sun, and the second at 2300 Sun.

 

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