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Author Topic: How to take over a route?  (Read 1256 times)

cidjackaries

  • Former member
How to take over a route?
« on: March 29, 2014, 06:56:03 PM »

Hi all,

 Just a semi-general question. I am currently a small airline, and I am making enough money to be able to expand my fleet of aircraft from four to five in the next few months (Game time wise). All my destinations are being covered by Saab aircraft and Fokker 50s, with 99% avg load. One route I think would bring me a lot of money would be a direct route to Chicago. I tried before to break into that route before and lost a lot of money trying.Two airlines pretty much own it. (Their available seating exceeds the customer daily average.)

How do you go against a larger and more mature airline?

Thanks for the help,

Cid

Offline Mr.HP

  • Members
  • Posts: 2730
Re: How to take over a route?
« Reply #1 on: March 31, 2014, 02:24:40 AM »
From the AWS buddy point of view:
- I'd say don't try to fly too far with small A/C. A general rule is not flying further than 10 x total seats of your A/C. Well, this is what I heard from other people who have experience with small A/C
- You're still small, so better focus on closer airports, so you can get at least 4 flights a day per A/C. Flying to ORD would be your last option after filling all other routes
- And to answer you question, use a no-bigger-A/C than your competitors, and serve the route 1 or 2 times daily. You'd be able to draw decent (better) LF when all other factors are equal (RI, CI, proper A/C, price, time, etc...)

From the competitor's perspective, I'd welcome you to join the route. The more, the merrier, right?  ;)

cidjackaries

  • Former member
Re: How to take over a route?
« Reply #2 on: April 01, 2014, 05:28:20 PM »

Thank you for the information!!

 I did what you suggested and I found 26 routes I can fly with no competition and still make enough on to grow my airline!

Offline LotusAirways

  • Members
  • Posts: 844
Re: How to take over a route?
« Reply #3 on: April 11, 2014, 04:45:06 AM »
One route I think would bring me a lot of money would be a direct route to Chicago. I tried before to break into that route before and lost a lot of money trying.

If you open one flight only using a turboprop to Chicago one hour apart from other flights, your plane will have 90 to 100% LFs. Just be patient and let the route image build up to 100 (it takes about six months). At start your load factor will be 40-50% and that is the break even point on a turboprop doing 800 NM.

Good luck.
LA 

Kumono

  • Former member
Re: How to take over a route?
« Reply #4 on: April 30, 2014, 05:59:37 PM »
It is definitely possible. One thing is to be patient, let LA mentioned, wait until RI is 100. The other is to think of a strategy: which slice of the pie are you targeting? For example, many airlines use factory default sittings for their a/c. So it may be a good idea to offer premium sittings at a higher price. In this way you minimizes the price competition. Also remember 100% LF is not necessarily the best outcome. Sometimes it is profitable to trade LF for higher price.

Offline Infinity

  • Members
  • Posts: 1564
    • Aviation Awareness
Re: How to take over a route?
« Reply #5 on: May 03, 2014, 10:39:24 AM »
All my destinations are being covered by Saab aircraft and Fokker 50s, with 99% avg load.

One tip from me, if your routes are flying with 99% Load Factors, your tickets are too cheap. You can probably raise prices across the board by at least 10% and earn A LOT more money.

cidjackaries

  • Former member
Re: How to take over a route?
« Reply #6 on: May 03, 2014, 05:16:33 PM »


I noticed my profit margin was to low, so I have been increasing prices on all close to full, or already full loads.

Offline knobbygb

  • Members
  • Posts: 605
Re: How to take over a route?
« Reply #7 on: May 26, 2014, 06:42:24 PM »
Quote
So it may be a good idea to offer premium sittings at a higher price. In this way you minimizes the price competition. Also remember 100% LF is not necessarily the best outcome. Sometimes it is profitable to trade LF for higher price.

Quote
One tip from me, if your routes are flying with 99% Load Factors, your tickets are too cheap. You can probably raise prices across the board by at least 10% and earn A LOT more money.

I am currently trying to see just how high prices can be pushed with premium seating.  I probably shouldn't reveal this to the competition but... On my LHR route supply outstrips demand by 100% ish. I have premium First class seating and my prices are currently 205% above default (4592 charged vs 2240 default) and I'm STILL at 100% load factor on every flight, every day of the week at every time.  I am sure I would make a lot less money if I put in standard seating and charged less.

I am not the biggest supplier on the route, so it's not the best strategy for stat-chasers, but I bet I am making a LOT more money than the competition with their half empty 747's.
« Last Edit: May 26, 2014, 06:49:09 PM by knobbygb »

Offline 11Air

  • Members
  • Posts: 433
Re: How to take over a route?
« Reply #8 on: June 06, 2014, 08:18:54 PM »
hate giving away market secrets so I'd suggest you keep prices right by aiming for 90 to 95% LF's. ATR's a re great because you can use the 45 to build the route then replace with a 72 when the route grows. There are other combo's that give near equal flight times so you can trade seat no's up or down to get the load factors right. Fuel, wages, etc don't stand still. Fill the jump in seat numbers with some 72's with better seating which also increases ticket price AND load factors. Shh.

 

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