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Author Topic: 6M USD in the RED  (Read 1783 times)


  • Former member
6M USD in the RED
« on: June 20, 2009, 08:27:07 AM »

I have big problems.  My airline runs two small Fairchild (19 capacity) planes to local airports.  And one Yuk.... plane 104capacity to other destinations, Paris etc.

The planes are profitable although some routes are only 50% full.  I adjust prices which improves this ratio but still I make a loss.

My main costs are salaries and aircraft maintenance.  Is there anything I can do here with these to reduce the overheads?

My leases to the two small planes expire in June / July 2005 respectfully and it is planned to terminate at that time and seek another Yuk... (I forget the name) but clearly this will be difficult as I am 6M in the red.  If I terminate earlier I will surely be receiving a 600,000 penalty.

Assistance is appreciated. Currently I am contemplating redundancy!

Offline Brockster

  • Members
  • Posts: 1890
Re: 6M USD in the RED
« Reply #1 on: June 20, 2009, 08:34:59 AM »
Personally I would just start off fresh.

Leeds is such a small airport but surely it has room for planes like the Q400? With a plane so small like the Fairchild you need to be flying multiple routes daily (IE at least four), and small planes shouldn't be flying long routes. The reason for your low LFs is either from competition or that you're on the wrong routes or even that your company image is low. Check for cancellations and what they are caused by.

What I would do is to try to grab a turbo prop (of course you'll have to check the demand on the routes) and fly as many routes\frequencies you can.

Offline Sigma

  • Members
  • Posts: 1920
Re: 6M USD in the RED
« Reply #2 on: June 20, 2009, 04:12:20 PM »
You simply can't make money in this game with 19 pax planes.

The routes will show profitable, but in reality they are not.  This is because overhead costs aren't displayed on your profit figures, only the direct costs of lease/labor/fuel.  All the overhead of all the salaries of your employees outside of the Pilot/Crew aren't figured in.  Nor are the fixed maintenance costs.  And since this game requires the same number of overhead employees whether you're opening a route for 747s, or a route for 9 pax Cessnas, you simply can't do it.  You can't make enough money with 19 pax to pay the salary of all the other personnel you had to hire to run that route -- not unless it's a short route and you can run it 10 times a day or something.  Even that's not a big help since some overhead personnel are hired based on how many flights a day you operate.

Throw in the fact that these planes are running at 50% occupancy and there's no way you can make enough money moving 8 people to make a net profit.


  • Former member
Re: 6M USD in the RED
« Reply #3 on: June 21, 2009, 12:49:15 PM »
Yes, my pencil calculation with around 10 props tells me that a plane making around 65.000 USD in EAVC (Earning After Variable Costs) is at break-even when adding the overhead. Further, your Yuk-planes should be very thirsty on fuel I would suppose.


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