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Author Topic: a bit of help for a noob  (Read 928 times)

theguv316

  • Former member
a bit of help for a noob
« on: February 04, 2010, 05:29:22 PM »
I have a nice little fleet of 737's and a 757 and a 767 My profits a slow but steady
my CI in-7 as i let it slip to -20 b4 sorting out the problem what i really need to know
is the loan system how can some people afford 10 new planes what am i doing wrong
how does one get enough to buy a new plane then use that to secure a new loan etc

Offline RushmoreAir

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Re: a bit of help for a noob
« Reply #1 on: February 04, 2010, 05:35:49 PM »
On the loan page, there should be two types of loans -- non-backed and backed. You can get non-backed loans any time, but if you own a plane, you can get backed loans. If you default on the loans, the bank will confiscate the plane you were using as collateral, and it will become property of the bank. Unless you are sure your loans will pay out, don't use a plane as collateral.

theguv316

  • Former member
Re: a bit of help for a noob
« Reply #2 on: February 04, 2010, 05:39:46 PM »
I understand that much bt all they willloan me is 4 mill unsecured
cant get a good plane then umm im in a pickle at the mo

Offline Maarten Otto

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Re: a bit of help for a noob
« Reply #3 on: February 04, 2010, 05:40:22 PM »
Easy (dot).

To start with your fleet. From what I hear it's horrible. 3 types = high maintenance expanses. Try to stick to 1 fleet type for as long as possible. Preferbly all AC's with same engines aswell to reduce costs.

For your CI... check cancellations. Check your advertisements (this is important)

Q: How do I buy 10 planes when my company is not even a year old?
A:  You don't!

Q: So how do I get ten planes:
A: Make sure you start with two from the USED market and LEASE them, generate a profit, and go to the bank to take a loan. With the loan you can lease another plane.... and so on.
« Last Edit: February 04, 2010, 05:42:26 PM by Maarten Otto »

theguv316

  • Former member
Re: a bit of help for a noob
« Reply #4 on: February 04, 2010, 07:36:19 PM »
cheers thanks for the help but in the meantime i have bought a 4th type
( i had no choice i wanted to do long haul) so its just a sit and wait
game and hope i dont go bust

Offline Maarten Otto

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Re: a bit of help for a noob
« Reply #5 on: February 04, 2010, 08:41:05 PM »
Perhaps you should go bust. Sounds creepy don't you think?

But When I started playing AWS I went bust 2 times... the third time I ended up with a 2,5 bn company value... So perhaps you just need to start over again, with the knowlage you already have in mind it can only improve.

knutm1980

  • Former member
Re: a bit of help for a noob
« Reply #6 on: February 05, 2010, 03:47:51 PM »
Wise words from Maarten. I bankrupted my airline, relocated and it has been ok. No mega profits, but my routes are a mess due to pax. demand to my base country. But I've made enough cash to start buying planes out right. It does take some time to generate profits, but again, I have only just been having a look at routes with several thousand pax daily demand, which is crazy from my point of view, as most of my direct routes will barely hit 200. Subsequently, I waste alot of cash on fuel and routing fee's to get to the passengers, though still profitable, not the most efficient busniess plans around. If you have a look at the other airlines statistics, you can see how some have an extremelly high profit margin.

Drop your prices a little to take on the competition and market your airline heavily and you wll be rewarded with trust from your central bank. My strategy to growth was to spend all my available cash on plane leasing, it's taken a long time but my fleet is 27 aircraft now, but I have yet to place orders of 1 new aircraft at the time. Leasing fee's is wasted cash essentially. I have leased multiple aircraft simultaneously, and as Maarten suggests, start with 2 a/c. Business and first class configurated aircraft have potential for good income if you have alot of demand for it on certain routes. Also, whilst routing, remember to carefully think about your turn around time. The default setting gives a 25.5% chance of delay/cancellation. As any traveller knows, airlines can quickly fall into negative territory if that happens frequently. This will boost your CI as far as I understand.

On a side note to a/c purchases. My first purchase was a small and cheap plane which I later used for collateral to get a bigger loan to afford my first 757. It starts a snowball effect essentially, you can grow without drastically increasing your overhead.


Edit: I can't stress this point enough. As they say, keep your friends close, keep your enemies closer. Try to remember who flies where, concerning yoru market. They occasionally go bust, I just spotted 1 of my competitors going down. That's a new plane on order and new routes opening.
 
« Last Edit: February 05, 2010, 03:55:38 PM by knutm1980 »

theguv316

  • Former member
Re: a bit of help for a noob
« Reply #7 on: February 05, 2010, 09:15:08 PM »
Cheers for all the advice my fleet is up to 11 or 12 now have 5 types but my routes are quite good
so im still making a good profit of appox 1 mill a week im hoping to cling on to turn this around
but maybe the big c checks will cost me in the end fingers crossed.

 

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