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Author Topic: Going on 5 weeks...now what?  (Read 2449 times)

Offline jeff_firefly

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Going on 5 weeks...now what?
« on: August 25, 2011, 07:58:21 PM »
Hey! I just started a beginner's game yesterday - loving it.

I know that patience is necessary, and I'm happy to wait, but I wanted to see if there's anything I should be doing.

-I have one 733 (all standard econ), flying 2 routes during the day, and 1 at night (to keep the plane off the ground).
-My company image has been rising (now at 12), and all routes are at 14.
-The load factors for the two daytime flights are 66% and 67%, and the overnight is 31%.
-I'm currently doing national advertising with all media (I figured I try this to start out then scale back).
-My personnel are on auto.
-My prices are about 20% lower than recommended.
-I have a little over $3MM in the back ($1MM in loans)

Last week my net loss was $42K, and this past week my net loss was $48K.

What should my next move be? Wait until load goes up with image to make more revenue? Change my marketing tactics (currently about $110K per week)? Get another plane (seems an expensive) and run more routes or flights on my current routes?

Any thoughts would be appreciated. Thanks so much!
Jeff

Chavaquiah

  • Former member
Re: Going on 5 weeks...now what?
« Reply #1 on: August 25, 2011, 08:41:08 PM »
From beginner to beginner...  ::)

First, and foremost, get another plane ASAP! Two more, as soon as you can. You're already paying fixed costs for the 733, better divide those among several planes (of this same model).

If the routes you're already doing are below capacity, create new flights there. May sound counter intuitive but this will actually help your LF while avoiding hiring many people at new airports.

Scale down a bit on marketing. At this stage, to have your CI climbing, better make sure you have properly maintained planes and adequate turn around times to avoid delays and cancelations.

Adjust the night routes' fares to bring LF and profits up.

Otherwise, 3 months from now when you start paying that single a/c lease again, you'll go further into the red...

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #2 on: August 25, 2011, 08:44:57 PM »
Great to know, thx!

in terms of the niight route fares, should I adjust down to get more pax, or up for higher fares?

Also, with marketing, should I stick to my base area only?

Chavaquiah

  • Former member
Re: Going on 5 weeks...now what?
« Reply #3 on: August 25, 2011, 08:54:37 PM »
Lower your fares to try to bring more people to the flight. But carefully so as not to loose all revenue.

Regarding marketing, it seems the geography is not important, only how much you spend.

Oh, and you have the Atlanta route all to yourself! Use that advantage. You could even leave the other routes temporarily (but keep your slots and remember to go back before they expire).

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #4 on: August 25, 2011, 09:14:54 PM »
Thx! Just got another 733 and created 4 routes just to ATL :)

I'm doing just state and no tv on marketing - I accidently cancelled the current campaign and it cost me $60 :( oh well.

I'll lower the pricing...I now have about $1.2MM in the bank, so hopefully when I get the new a/c it'll start generating more revenue....

Offline RushmoreAir

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Re: Going on 5 weeks...now what?
« Reply #5 on: August 25, 2011, 09:28:58 PM »
Lower your fares to try to bring more people to the flight. But carefully so as not to loose all revenue.

NO NO NO NO!!!!!  :o

Never lower your fares less than 5% from default.  It BARELY gives you any benefit, and certainly is not worth the lost revenue.  In real life, this strategy might work.  But it doesn't work in AWS.


On the marketing, don't spend it on Route Marketing.  Just put it all into Company-Wide and you'll do fine.

All the other advice you've been given is correct.   :)

Hope this helps.   :)

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #6 on: August 25, 2011, 09:31:11 PM »
Rushmore - some of the beginner's FAQs in the main forum stickies mention going down to 10-20% below recommended, at least until you have a good enough image and capacity, no?

Offline RushmoreAir

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Re: Going on 5 weeks...now what?
« Reply #7 on: August 25, 2011, 09:33:13 PM »
Rushmore - some of the beginner's FAQs in the main forum stickies mention going down to 10-20% below recommended, at least until you have a good enough image and capacity, no?


This is only if you're running against 5 other competitors that have CIs much higher than yours.

Otherwise, your RI builds up with time, and unless you're flying a really crappy plane (25 y/o Yak) the customers will pile on anyway.

The best investment of your money will always be more planes and marketing.

EDIT:  Who said that you lower prices?  I'm curious.  :)

Offline RushmoreAir

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Re: Going on 5 weeks...now what?
« Reply #8 on: August 25, 2011, 09:36:46 PM »
Oh, and you don't want to raise your prices over the default either.

Just keeping it there will serve you nicely 98% of the time.

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #9 on: August 25, 2011, 09:45:22 PM »
Ah, very good to know....

I found it here: http://www.airwaysim.com/forum/index.php/topic,3728.msg16159.html#msg16159, and also in the route section of the AWS beginner's manual: http://www.airwaysim.com/game/Manual/General/Startup1/

Offline RushmoreAir

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Re: Going on 5 weeks...now what?
« Reply #10 on: August 25, 2011, 09:56:16 PM »
Ah, very good to know....

I found it here: http://www.airwaysim.com/forum/index.php/topic,3728.msg16159.html#msg16159, and also in the route section of the AWS beginner's manual: http://www.airwaysim.com/game/Manual/General/Startup1/

Both of these are 2+ years old, and only work with version 1.1

We're on 1.3 now.  I don't know why Sami hasn't updated that segment of the beginner's manual.

Curse has a good (updated) beginner's guide here: http://www.airwaysim.com/forum/index.php/topic,31706.0.html.
Swiftus has one here, but it's a tad out-dated. http://www.airwaysim.com/forum/index.php/topic,9211.0.html

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #11 on: August 25, 2011, 10:17:05 PM »
Yeah, I read those both...didn't realize the other one's were so old. Thanks for the info :)

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #12 on: August 27, 2011, 03:44:04 AM »
Just wanted to let everyone know that getting a second plan worked - my net went from $15K to around $400K within a few weeks...just bought another used one as my third :)

Chavaquiah

  • Former member
Re: Going on 5 weeks...now what?
« Reply #13 on: August 27, 2011, 09:01:25 AM »
You introduced another fleet type with your 3rd ac. That will hurt your profits with its fixed maintenance costs.

Not that it was a bad decision. Finding used 737 Classics is getting very hard, so you had to go with a Jurassic. But try to add another 737-200Adv so as to dilute maintenance costs.

Also, do something about your punctuality. Are you scheduling minimum turn around times? Not a good idea as all those delays can't be good for your airline's image.

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #14 on: August 27, 2011, 03:13:52 PM »
yeah, there were no more used 733s, and the cost/time to delivery of a new one didn't seem to make sense. I'll get another one :)

what's weird about the scheduling is that the minimums are 35-40 min, but I've been selecting 60 min as much as I can - so I don't know why the issues are coming up.

Scheduling (too short turn-arounds)    347 mins   (~ 28.47 %)
Technical problem with aircraft    91 mins   (~ 7.47 %)
Airport and route traffic restrictions    190 mins   (~ 15.59 %)
Airport weather conditions    584 mins   (~ 47.91 %)
Lack of staff    7 mins   (~ 0.57 %)
Unmotivated staff    0 mins
Staff strike    0 mins

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #15 on: August 30, 2011, 04:47:13 PM »
So, here's the next question:

I've gotten a few more 732s, and I have one 733 on order, with about $5.5MM in the bank. Should I keep increasing my fleet one at a time, or is it better to build up cash, and lease a few new planes at a time (i.e., put in an order for 2-3 at once)?

Thx!

Online Sami

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Re: Going on 5 weeks...now what?
« Reply #16 on: August 30, 2011, 05:28:54 PM »
I would keep a million or two in reserve. But when you have less than 10 planes in operation I would be quite aggressive in growing the fleet.

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #17 on: August 31, 2011, 12:57:24 AM »
Sounds like a good plan...thx!

Offline jeff_firefly

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Re: Going on 5 weeks...now what?
« Reply #18 on: September 15, 2011, 04:12:44 PM »
OK, so I now have 25 a/c, with 15 on order, and $80MM in the bank. Profit margins are around 3%, image is good, what's next? Just more routes and more planes?

Offline Sanabas

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Re: Going on 5 weeks...now what?
« Reply #19 on: September 16, 2011, 01:14:39 AM »
Yep. More routes, more planes, try and take over routes from your competitors, open a new base, stay the same size but change from older, leased planes to newer, owned planes. Depends what you want to do.

 

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