Need help can never get going

Started by DennisN, March 02, 2012, 02:54:09 PM

DennisN

This is a desperate cry for help!

I am not sure what I am missing here.  I can never get my airline off the ground.  I've tried regional and I've tried 950-1000nm flights.  I don't think I am overspending on planes.  Starting with only a couple of planes and even keeping them booked solid I go into the red so deep I can never recover even after I start profiting a little bit.  Marketing is at a minimum and I keep the fleet commonality pretty damn tight.

Can somebody provide me some exact details of what they do to get a solid airline off the ground?  I appreciate the feedback.

JumboShrimp

Quote from: DennisN on March 02, 2012, 02:54:09 PM
This is a desperate cry for help!

I am not sure what I am missing here.  I can never get my airline off the ground.  I've tried regional and I've tried 950-1000nm flights.  I don't think I am overspending on planes.  Starting with only a couple of planes and even keeping them booked solid I go into the red so deep I can never recover even after I start profiting a little bit.  Marketing is at a minimum and I keep the fleet commonality pretty damn tight.

Can somebody provide me some exact details of what they do to get a solid airline off the ground?  I appreciate the feedback.

You could try to fly shorter distances, if you have that choice.  They are a little bit more profitable, and are less sensitive to RI and CI.

The question on "not overspending" on aircraft is more complicated.  Less expensive, older aircraft generally has higher maintenance costs, and if it is an older model, may have a higher fuel consumption rate.

When you start, your LFs start low (and are inconsistent) because of low RI and CI, and you need to make it through first couple of months with your initial aircraft and routes and start turning reasonable profit before the leases kick in (after 4 months).  By the 4th month, your initial RIs should be at about 50, producing more consistent LFs and profits...

Jona L.

Maybe use decent planes as well, instead of <30 seaters (which is only an assumption that you use them, but seems most likely to be the case as you should make some profits with any other planes)

Also it depends on multiple factors how to get started well (e.g. there are different strategies to different countries, differently sized airports, etc.)

Suggestion: Read the topics for newbies and the FAQ (by Curse) these should help you with good advice!

cheers,
Jona L.

schro

Getting going is the most annoying part of this game. Once you've got a solid foundation, life gets a lot easier.

I took a quick look at your airline, but didn't check your route competition - here's a few things -

1. I assume the routes you are flying have unmet demand. If you're a new airline flying into stiff competition, you will get pants'ed.
2. Patience is a virtue. As JumboShrimp pointed out, low RI and CI make life difficult. It really takes a whole 6 months for a new airline to get well established on a route. I typically discount fares 10-15% at first, then raise them back to standard over time until I hit the 6 month mark.
3. Your airline is newer than my latest iteration. Honestly, it will take at least 2-3 real life days before you start gaining momentum. Your aim should be having enough to lease your next plane by month 3-4 of operations. Once you get to the 6-7 plane level, the pace picks up quite a bit. For reference, I was barely breaking even for the first 2 months of operation. Only now am I getting happier with my results.
4. I would aim to keep marketing as low as you can go while keeping it increasing quickly from a CI perspective. This will really help you down the road.
5. The 733 and 735 aren't _great_ planes because they're a bit on the small side for their operating costs, but hopefully they'll be good enough to get you going.

DennisN

Quote from: JumboShrimp on March 02, 2012, 03:48:43 PM
You could try to fly shorter distances, if you have that choice.  They are a little bit more profitable, and are less sensitive to RI and CI.

The question on "not overspending" on aircraft is more complicated.  Less expensive, older aircraft generally has higher maintenance costs, and if it is an older model, may have a higher fuel consumption rate.

When you start, your LFs start low (and are inconsistent) because of low RI and CI, and you need to make it through first couple of months with your initial aircraft and routes and start turning reasonable profit before the leases kick in (after 4 months).  By the 4th month, your initial RIs should be at about 50, producing more consistent LFs and profits...

Thanks JumboShrimp so just for clarification, are you suggesting start with 1 aircraft and give it a couple of months?  I usually jump in with 3 or more if I can afford it and end up in the red pretty quickly.

JumboShrimp

Quote from: DennisN on March 05, 2012, 12:27:50 AM
Thanks JumboShrimp so just for clarification, are you suggesting start with 1 aircraft and give it a couple of months?  I usually jump in with 3 or more if I can afford it and end up in the red pretty quickly.

I would start with 2, but leave some cash on hand (positive cash) so that you can run a marketing campaign, slot acquisition.  Half a million is good enough to leave on hand.  And then, when cash grows so that you are in position to lease another one, do it keeping in mind that you need to leave some cash on hand.