Money

Started by Billaviz, July 12, 2010, 11:08:21 AM

Billaviz

Hello everyone,
All my routes are in positive, but I continue to lose money ... What are the costs I can cut to recover?
Thanks!

Sigma

Without the ability to see your details, I'm gonna have to guess here, but your problem seems to be Overhead costs.

The little screen that shows you what your routes are making only includes DIRECT costs to operate that route -- so the pilots and the fuel pretty much.  All the extra people it takes to operate that route, all the people you need in your headquarters, all the marketing costs, etc, etc, etc.  All those aren't included.

There's really little you can do to control those costs.  What it usually means about 95% of the time is that you simply need more planes and more routes to generate more revenue to help you cover those added costs.  Without knowing how many planes and routes you've got it's hard to say that for sure, but that's the usual cause for losing money even when your routes are "profitable".

takasito

"Costs exclude aircraft leasing, maintenance and staff salaries"

AAL558

Try to avoid aircraft with high fuel consumption. For example, a Boeing 727-200 can take about 160 passengers and has a fuel consumption of around 4000kg an hour, meanwhile the Boeing 737-400 can take approximately the same amount of passengers and has a fuel consumption of 2000kg an hour. That means you'll be saving 50% of fuel which will definitely lower your costs. Avoid old aircraft (usually Soviet Aircraft too) that have really high maintenance costs. Before buying or leasing a new/used aircraft, take a look at the maintenance information, then shop around and compare.