Proportion of costs etc

[Muppetdave901]

Would anyone who is more experienced be able to provide a very rough (I appreciate it's vastly different for each airline) idea as to what percentage of total costs each individual cost should be?

I ask as in the last few days my profitability has dropped by around £300.0K on a weekly basis, and I want to see if I am being excessive anywhere?

Happy if someone wants to PM it to me if they don't want to publish.

[Powi]

Only costs you can directly affect are marketing costs. Sometimes getting very high CI is not affordable for a small carrier. Check if you can get a real boost to your profit by cutting marketing costs - if you can try it out. I would start cutting from route marketing.

The other thing how to affect costs is indirectly by the fleet. Stick with max two fleet groups until you make decent profit. Don't fly single planes in any fleet group. Almost all aircraft should be profitable this way, if they are flying right routes (or at least this was the case in 1.0). Try to get aircraft under age of 10-15 years, don't touch aircraft over 20 years old, don't perform D-checks (plan to avoid having planes with expiring D-checks). Preferably choose aircraft with right amount of seats, min turnaround time, min crew and lastly decent fuel consumption (ok, fuel consumption is very important in some time frames).

ps. sorry, I see now that couldn't answer your question, but I'll post this anyway. Hope it helps at least a little.

[Dazwalsh]

well for me i average about 30 million a week in ticket sales at the moment, and i see roughly 10-12 million of that, most money goes on aircraft leases, staff salaries, maintenance and training costs.

the big ones you can reduce are maintenance and lease costs, by running newer more efficient aircraft with less fleet types and engine types, and then when possible buying out your fleet to reduce lease costs.

it will obviously be diferent for each player, some may have a higher percentage or lower, depends on how efficient the business model is they are using

Hope this helps

[Muppetdave901]

Thanks for the responses, as you say there is so little that I can directly alter, I was being a bit too work-like when when I wrote that!!

I guess I'll just have to keep going along the lines you've said.

[DenisG]

Perhaps you can get an idea from my Financial Results. See attachment.

Denis

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