Need Help on Making a Profit- Newbie

[Kanis]

I started the game in the month of May (Beginner World) and since then I have yet to get out of the red on weekly returns. I am based in KLIT with 2 ATR-42s and 1 EMB-120. I have tried all the tips that I found but nothing seems to really help. I was having more luck in the Caribbean , in the Demo world, flying DHC-6s to small islands. So is there anything I can do to turn the company around or do I need to move back to the Caribbean?

[ucfknightryan]

What marketing campains are you running?  Also, make sure you cut your CEO salary back to zero if you haven't already done so(not that that'll solve the problem but every little bit helps).

[Kanis]

I am running a permanent general campaign using newspapars and billboards.

[swiftus27]

you are spending a ton of money for an airline with no larger aircraft.  

Smaller prop planes don't fare so well by themselves.  They are good to supplement an airline but not be its base.

And when you have to start paying for the leases on those planes.....

[Kanis]

It has started to dawn on me that I maybe spending alot. But I dont know what areas I can cut.

Why havn't I been paying the leases?

UPDATE: I went down -111 992 USD at the end of week 30

[swiftus27]

When you start a lease, you pre-pay the first two months.   After week 8, you will see monthly lease payments be deducted.

[Kanis]

So what do you think I should do? I am sinking farther down the rabbit hole.

[ucfknightryan]

You prepaid the first four months of the lease when you leased the aircraft.  It is hard to make money with just small aircraft.  How many routes are you flying a day with each one and what kina of profit is the my aircraft screen showing for each one?  For the short term you might try dropping the billboard marketing but I can't claim to have any experience with what that'll do to your company image and load factors and I don't know if you have the cash to pay the cancellation charge on the old marketing campain.

Do you have enough cash to lease a larger ac and get it scheduled?

[Kanis]

I have $925,000 to use, but I can find any large aircraft that just wont kill me. My two ATRs are making a total of $161,892 a week. While my EMB-120 is making $79,000 a week. Each aircraft flies 4 routes a day with an total LF of 64%.

[Sami]

Judging by that screenshot - the marketing is too high compared to the income you are getting.

And also it's not a good deal to use two fleet types in such a small firm.

Also, instead of trying to cut costs try to maximize your profits. With high fleet utilization and ticket price optimization.

[Kanis]

My two ATRs are making a total of $161,892 a week. While my EMB-120 is making $79,000 a week. Each aircraft flies 4 routes a day with an total LF of 64%.

[swiftus27]

That screen doesn't include your airline's fixed costs. 

That profit screen is often misleading to newbs.

[Kanis]

Well how long would you go with a loss each week before you would restart?

[ucfknightryan]

Personally, I keep trying things until I wind up with negative cash and negative cash flow.  At that point its pretty hopeless.  I've done it three times now in different games.  If you still have enough cash, I'd try leasing another ATR if you can find one, and schedule it on the shortest routes you can find.  The four routes a day you're flying now, are they A->B->A routes or A->B->C->B->A routes?

[Kanis]

A>B>A Routes. All the short distance airports are small or I have traffic at them all ready.

[Sigma]

Sometimes a strategy just flat-out won't work somewhere.  There's nothing more to it.

If you don't have enough possible destinations in order to reach a critical mass to cover your operating costs, you simply can't make it work.