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Author Topic: Shall we declare bankruptcy ??? Which error we make ???  (Read 335 times)

Offline Ritchie PT

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Shall we declare bankruptcy ??? Which error we make ???
« on: November 12, 2014, 06:25:43 PM »
Hi guys (and girls)

I'm one of the new players, trying to make an Airline to be profitable since I started 6 weeks ago, but...

- Most of the times I correct my seat errors (too much of this, not enough of that), and my planes start to be on positive but always negative accounts... I know, I leased my planes, so that takes all the money I earned... But I'm sure there's a way of getting those taxes very low!!!

- Sometimes, the airport I want to fly to says ex: 160 seats, and even with a plane with a good range that makes 90 seats (all premium seats), there's always a line that doesn't make enough money... and there's still a lot of offer for it!!! I even tried to raise prices, and still the same!

- I'm doing a Chicago empty airport, that has a lot of domestic lines, which I'm trying to fill up, but with the problems named before... I have 7 aircrafts, all Boeing, 3 different sizes... Is that a problem too? Because a lot of lines are almost 100% full!!!

- Do I have to try some other options??? I tried staff low salaries, no marketing, high prices, low pieces... nothing works! Maybe I want to see results too fast !!!

Anyway, I asked for a mentor a few times but no answer from anyone till now! I really would like to have some "expert" advises, so I can play this game and getting fun like I'm (was) having till now !!!

Thanks for your replies !


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Re: Shall we declare bankruptcy ??? Which error we make ???
« Reply #1 on: November 12, 2014, 07:44:58 PM »
Hiya Ritchie

I made loads of mistakes when I first started, bankrupt after bankrupt. You say you have seven aircraft, all Boeing. You don't say how long you been going at the moment? I found that starting off with something like a Fokker 27, they are a turboprop, their costs are very reasonable, and their range of 1000 NM's is very good. don't be afraid to block seats when needed and always market a new route and another thing, be patient.
Routes do take time to grow and keep an eye on your load factors, LF's when they get above 90% I always raise the prices by 5% or so, I forgot to mention when you start a new route, lower your prices by 5% or even 10%, it'll get the pax on board and as I said don't forget the marketing.

Have fun Ritchie


Offline sansa93

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Re: Shall we declare bankruptcy ??? Which error we make ???
« Reply #2 on: November 12, 2014, 08:16:36 PM »
I just want to start off saying that I'm no expert at this game either, but I'll try to help you the best I can.
After taking a quick look at your airline, I noticed you have 7 aircraft, but 3 fleet types. In my opinion, that's way too many for an airline just starting out. Your maintenance costs will be unnecessarily high. I think a better way to approach it would be to get rid of both the 737-500 and the 757 and replace them with the 737-600 and 737-900, respectively. I don't know if that will be possible for you, considering you would need to pay to terminate those leases... My own general rule of thumb is to wait until I have about 15-20 aircraft in one fleet group until I add another.
Also, it seems like your fleet utilization is fairly low (11 hours), meaning that your planes spend a lot of time (about 13 hours) on the ground. Try adding more overnight flights. Even if they aren't incredibly profitable, they should still help make some money. Besides, if a plane isn't flying, there's no possible way it can make any money at all!

Anyways, I hope i was able to help you out some. I don't know if your best bet is to go bankrupt or if you might be able to salvage what you have now... That's something that someone with more experience might be able to help you figure out. But either way, keep at it! Making mistakes is a part of this game. Everyone makes them. Keep asking questions and you will learn from them!

Offline Sami

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Re: Shall we declare bankruptcy ??? Which error we make ???
« Reply #3 on: November 12, 2014, 09:31:31 PM »
A quick look at your airline's last financial month:

 - revenues 12million, expenses 20million.

 - like previous poster mentioned your biggest problem is the fleet which is too diverse, and it will cost you a lot (maintenance)

 - marketing spending at 3.2 million is very high

 - on the revenue side you should increase prices on any routes with LF > 90% to maximize the profits.

 - fleet utilization could be improved, your ground turnarounds at outstations are almost ridiculously long (>2h for 737) cutting down the efficiency very much

 - your route image on most of the sectors is still <50% so you are not reaching yet the full potential of every route. It takes up to a game year.

 - F class is generally not worth in on domestic sectors, nor is premium seating (longhaul is different)
« Last Edit: November 12, 2014, 09:33:44 PM by sami »

Offline Ritchie PT

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Re: Shall we declare bankruptcy ??? Which error we make ???
« Reply #4 on: November 12, 2014, 09:48:24 PM »
Thanks for your replies ! those 2 replies gave me some "lights" about my mystiques and it will help me going on!

You are right sansa93 , I started with a lot of different planes and I saw their costs after !!! I learned with that mistake

Then, Solemus, you might be right about what you said, but it doesn't explain to me why a line needs 400 seats and a plane with 90 can't be full! But your idea about small airplanes is good, I thought about it as well... but I still wondering...  ex: Atlanta 440 passengers demand and my airplane is not full with 267 seats... even with low prices!

Thanks Sami for your reply to my post!

I do understood what errors I have made... I thought advertise was essential... and I was afraid of getting prices to high (even if I made a nice config on seats)... shall I leave normal seats for domestic flights???
Has I saw a lot of delayed plane because turnaround was to short I tried a bigger turnaround... but if it's not helping, shall I stay about 15% more of what is advised for each plane???
Is it essential to have advertise and personnel happy??? (in the real airlines, personnel is very unhappy!... lol !...)

I choose an airport that no one wants, to get some market and after get a second nice HUB... if I still alive !!!... but for now I still not seeing any results!... Do I want to see it to fast? Maybe... But I would like to go, so I can prepare myself for another game!!! Still need a Mentor (is it useful?)

Thanks guys !
« Last Edit: November 12, 2014, 09:51:22 PM by Ritchie PT »


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