Second hubs cost.

Started by jordanD, August 24, 2010, 08:01:03 PM

jordanD

Should closing down one of your second hubs reduce your overhead costs? I just closed down one of mine and moved all the airplanes back to routes out of my main base and the third hub and my profits have gone waaay down. Sure... maybe it's because I had to fire almost 500 people and the CI took a big hit, but the load factors still aren't bad (my most popular routes are still doing high 90-100% load factors) and I've got only one a/c type across the whole fleet.

Sami

Remember that when closing the hub you also lose the income from there ;)  So depending on how the incomes were coming (how much from each airport) you may see a raise or fall of the total profits etc.. But most likely a drop as you're selling less, and so on.

JumboShrimp

Another thing to consider is that when closing 2nd hub, your staff requirements may drop dramatically, but firing them will have a huge cost in morale and CI.

One of the ways to recover from opening a 2nd hub is to not fire all redundant personnel.  Put all your a/c to work in your main hub, and only fire a small portion of the employees.  Try to grow in our main base, and wait for morale and CI to recover before further firings....

jordanD

Quote from: JumboShrimp on August 31, 2010, 08:12:18 AM
Another thing to consider is that when closing 2nd hub, your staff requirements may drop dramatically, but firing them will have a huge cost in morale and CI.

One of the ways to recover from opening a 2nd hub is to not fire all redundant personnel.  Put all your a/c to work in your main hub, and only fire a small portion of the employees.  Try to grow in our main base, and wait for morale and CI to recover before further firings....
Yep, lesson learned. I had to fire almost 500 workers (didn't have near enough room for them at my other 2 hubs) and the morale and CI took a MASSIVE hit. Lots of cancellations/delays, etc due to morale. I've just now gotten those numbers hired back (only by adding about 5 a/c to the fleet) and their morale is going up. Learned from that mistake.  :laugh: