When does the bank close an airline

[clc000]

How much in debt or negative value must an airline be before the bank closes it down?

[Sigma]

Negative value doesn't play a role at all.

An airline must have a very significant negative bank account balance -- somewhere in the range of $10M or more AND (and this is key) it must be continuing to post a net loss for several real-life days in a row.  If an airline posts a net profit one week the clock resets.  It's common for a tax return to show a net weekly profit and that'll reset an airline so it can continue for a very long time.

[Drax Air]

Had a real problem tonight, I closed a A Dublin Flight that wasnt showing good profits like my other 6 routes, so I deleted that one, and made another Domestic flight, however after setting up the route, there was a conflict, so I redid it, but still found it was conflicting, because of a curfew, in the end, however I managed to succesfully get it going, But to my horror, my bank balance had gone 8million in the red, after being 140k in the green, Then I noticed that each failed route that couldnt be used, I was being charged slot rates, even though they werent excepted, surely this is wrong?, if The route cannot be added, now I face task of recovering this, which has dropped my B credit rating to nearly D.  This seems unfair, not to have the slot charges returned if the slots werent used at any time?

[Drax Air]

woops! correction thats 814k in the red, not 8million, need a new pair of glasses

mike

[Drax Air]

Well Im dissapointed:(

It seems once your in the red, There is no way up, only down, despite, adding a new route that was starting to decrease my decifit, which started out at a very satisfactory LF of 93% Y & C,  next morning, it had dropped to 59% for no reason at all, So I added another campaign, this did nothing at all, only put me deeper in the red, Most of my flights have 100 route Image, and I changed fuel company to lower costs. After 4 days of struggling to reduce the shortfall, because of the unused slots that were being charged when I was solvent, im now 3.5 million in the red, and can see no way out, cant pay the 2 small loans I have either, so looks like I will never understand this game, and it seems weighted against you once you go into the red, the daft bank still offering me 635K loan, lol, whats the good of that in my position?. Some flights I did away that were below 70%lf, I have no problems With turnarounds, most of my 8 flights have almost 100% puncuality, but company image stubbonly remains at 31, I dont know why Im getting a negative profit each week, when everything seems to point to making a profit. Any ideas welcome before I have to Fold & Start again?  The only thing that changed during that time, was to change the seating config, in two of my aircraft to include standard business class seats, but seems business people just dont want to use them, and I cant fill them, only to 50% of capacity..even though theres demand for them on the routes.

thanks

[Sanabas]

Only 8 flights? How many planes?

As for slots, you only pay a one-off cost when you create the route, there are no ongoing charges. There's no way to pay for a slot on a route that can't be created due to a curfew, either.

If you want advice, probably need to post screenies of things like income statement, scheduling, etc. A drop from 90+% to 59% for no reason at all. The reason might be competition, or you have two flights too close together. But there is a reason.

[Chavaquiah]

I see you already restarted the airline. Before going much further, perhaps you should browse the forum to gather a little bit more information and tips. For instance, why did you enter into a fuel contract with such a small fleet? There are a few threads on how these contracts work. You may think you're lowering your fuel costs but, in this world with such low fuel prices, the monthly fee will probably kill you in no time.

Try to plan ahead and don't go spending the money you may need to repay loans. Route marketing is definitely not a great idea when you're already struggling with fixed costs.

Most importantly, research your initial routes very carefully. Try to cram as many flights onto your initial schedule as possible. Right now, your single MD-82 is wasting precious hours going to Vienna. I'm sure you could have found better destinations closer to your base that would allow you two flights in the time you're going to Vienna.

And Amsterdam?! Really? What's with that? Did you notice who was flying that route? The pre-existing oversupply? The number of frequencies? 

For your second plane, you picked a different type from the first. Not a good idea. When it arrives go see the fixed maintenance costs and you'll understand why. Stick to one fleet type for the first dozen of planes.

(And stay clear of Amsterdam)

[Drax Air]

hi many thanks for the information, yes i had to start again, because deficit was pushing 4mill.

On the fuel, I thought, you should choose who you want to supply you, ok I may have been going by fuel costs in my Airport sim game Airport.inc. Which I play regularly, with a profit of 200million, but realize its not a real Airport sim. So from What you saying , is by buying cheaper fuel, A monthly fee. I take it, this is the contract fee, Is a lot higher?  So I will change that when Settled back, and paid of original loan.

I really wanted to keep the BAE146-  100/300s, but there's None Available.

As far as vienna is concerned, because I visited this city in real life manytimes, and its in my favourite film "The living daylights", its a case of a love affair lol.   This route on my first attempt was making good profits and 100% route image, one of my other aircraft, I also added Vienna too, an evening flight, again was profitable, especially on C class seats back to EGCC which were 70% full.

Amsterdam, I have had mixed fortunes, one day 75% lf, the next its down to 59%

Closer desinations from EGCC only includes Ireland , Scotland, and Southern packed Airports like heathrow, I did fly to Paris on one schedule
which after 2 months of being at 73%lf dropped to an insane 57% and 24% business class.

Slots, I understand better now. The last slots I had, kept clashing with maint or another flight, but been studying them, and making notes on the next available flight after the other has arrived.  Think I made same mistake as a poster did, I was looking at earlier, when the route was rejected,  I didnt untick let slots back into public, so when i made the same route, but with diffferant times, I was being charged again, at least thats how I think it happened. I could only afford 3 planes before, as i was paying for seating configs, and had to wait for them to come out of maintenance. But then, I was slightly confused, about capacity, when i put standard Bussines class seats in, I wasnt sure how many, in the end I did 15 C and I kept the economy to 60, although the actual capacity was 110, i had notices that I may not get to a certain desination, which was madrid, if I ticked max Economy seats,  I would like to keep same fleets of aircraft, but most of the other MD80s had much lower condition instances.  I always thought, that the condition and age of plane had a direct bearing on its fixed costs, so i didnt check my latest purchase, as thought it would be reasonable for its condition.  I will watch closely at the items you have pointed out, I have noticed, that some Airports in some countries, have higher demands in the second or third Airport, than the main one. Until I can afford To Lease a larger Aircraft to extend my range out of crowded Europe, I guess I will just have to adjust the parameters you suggest and Kill Amsterdam. Shamefully, i dont really know how to work out, what is an Oversupply, Are we talking how many Airlines flying to/ from Amsterdam, other Hubs or the actual amount of pax left available?

First thing I will do, is probably change fuel contract, but thats going to cost me, in future I leave that at the default supplier, whoever that was

Ok gotta go, thanks Chav & Sana, appreciate the input 

mike

[Drax Air]

Fortunetly the Fuel supplier I chose has the lowest monthly charge, so have to keep it, for the time being as its a huge amount of USD to break the contract, more than I got in bank in fact   lol