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Author Topic: Advice on expanding  (Read 498 times)

Offline sansa93

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Advice on expanding
« on: October 26, 2015, 04:39:32 PM »
I have a small airline based in Nagoya, but due to pressure from larger competitors, I'm not really able to add any more routes without over-saturating demand. I found another airport in Japan that should allow me to offer lots of domestic routes without much competition (about 150 pax/route). I would really like to get some new planes for the new hub instead of constantly relying on the used market.

I currently have a mixed assortment of 13 B717/MD90's (I own one of the MD-90's, if that's useful in any way.). I was thinking about ordering E190's or the Bombardier CSeries. The E190's are really affordable and more efficient than the 717's, but there isn't a replacement for the MD-90's, which seat about 150. The ERJ also counts as a medium jet, which should mean a lower cost for my new hub. The CSeries on the other hand, is almost exactly what I'm looking for, price aside. The CSeries is expensive, but it could replace the 717's with the CS100 and the md90's with the CS300. It can also meet my range requirements. It's classified as a large aircraft, though, which means higher start up costs for my new base.


So far, I have been fairly profitable, bringing in 1.9-2.2 Million/week (profit). I know ordering new planes and a new base is going to be expensive, but I feel like it would pay for itself pretty quickly.

Am I jumping the gun right now? Should I open a new base and buy new planes or should i keep ordering old ones? Any advise would be helpful. I don't want to drive my airline into the ground by expanding too quickly.

Thanks.

Offline jjj

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Re: Advice on expanding
« Reply #1 on: October 26, 2015, 06:33:38 PM »
prefer old planes in early stages :)

Offline gazzz0x2z

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Re: Advice on expanding
« Reply #2 on: October 26, 2015, 09:19:02 PM »
prefer old planes in early stages :)

yeah. The leasing costs are gonna kill you. Those shiny things are designed to be bought, not leased. Especially planes in great demand like the CS(though it varies from game to game, as it really depends on demand. If you're the only one to buy one type of planes, it's suddenly easier)

Offline ajalil

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Re: Advice on expanding
« Reply #3 on: October 28, 2015, 01:04:00 PM »
Lifespan of Beginner sworld is so small, that you may not be able to purchase new aircrafts. It is better to expand with leased aircrafts, how ever if you can afford it you may order new aircrafts on operational lease instead of direct purchase. The amount of money you will spend on purchasing new aircrafts as "own" will not compensate for the saving on the lease cost in the short timespan of BW.

I did this mistake in the beginning, and bought new aircrafts, but it was not worth it unleass your airline is generating massive revenues.
Regards,

Ajalil

Offline gazzz0x2z

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Re: Advice on expanding
« Reply #4 on: October 28, 2015, 06:22:47 PM »
(.../...)
I did this mistake in the beginning, and bought new aircrafts, but it was not worth it unleass your airline is generating massive revenues.

One critical thing to time in long game is this transition(for me, it often cames with a fleet change). Too early, and you're stuck while others are growing. Too late, and you're vulnerable to an oil price surge.

Offline sansa93

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Re: Advice on expanding
« Reply #5 on: October 30, 2015, 03:08:43 PM »
Thanks for the advice, everybody. I decided to just use older planes right now. I actually didn't realize that the world was ending so soon, therefore I wouldn't have even been able to get all the new planes. When I try out a longer world, I'll keep this all in mind.

 

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