Reducing Costs/Fees
roboczar:
I have a flight from Houston to a small regional airport and I'm trying to figure out how to reduce costs and make regional feeder flights worthwhile.
Sold tickets 52 990 USD
Line maintenance (A+B) -2 993 USD
Insurance -1 340 USD
Fuel cost -6 272 USD
Route fees (1) -14 966 USD
Weekly leasing cost -9 034 USD
Total 18 385 USD
Clearly you can see that the "Route Fees" are the highest expense. Should I move to a smaller, less used airport? Should I change my takeoff/landing times for less busy periods? Can I do anything at all to affect this? I don't want to have to cut costs by flying a shorter route, but if I can't reduce fees I will have to.
roboczar:
Oh wait, is this because I'm running 3 flights a day? Maybe a longer flight only twice a day?
sami:
For each landing you gotta pay the landing fee. For each passenger moved you gotta pay the airport pax fee... (smaller airport = smaller fees also) For routes you pay the enroute nav fee according to the length flown. So less landings is cheaper.
roboczar:
I'll try a longer route with my next plane, and see if I get better margins.
NorgeFly:
Quote from: roboczar on June 04, 2009, 07:42:36 PM
I'll try a longer route with my next plane, and see if I get better margins.
I generally find that if you are using regional aircraft its much more profitable to fly as many short flights per day as possible to bring in the most revenue. Four short distance return flights normally generate more revenue than two longer ones. Costs are obviously higher too, but the extra revenue normally more than makes up for that.
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