What to do next?

Started by erik.kritz, July 18, 2012, 05:16:44 AM

erik.kritz

Hello,

I am new to AWS as are many other players on this thread I presume.  I recently joined over the weekend and opened a base in Bahrain because there were no other airlines based there and I noticed 1 or 2 choice routes that were being under served, or not served at all.  Most notably, The flight to Doha and the flight to Kuwait.  I am satisfying that market and a few other smaller ones now with a fleet of 5 737-400s.  I have adequate cash flow from those routes. 

My problem is that I already seem to be stuck.  There are no more routes with ample demand close by.  I was trying to fly numerous routes (3 or 4) per day to keep the planes moving.  Now, all the routes with demand of 200+ pax are approx 900 miles away or more.  Some with higher demand (Bangkok or Munich) are over 2,000 miles away.  How should I proceed?  If I fly those types of routes, I can only get about 2 flights in per day, which I calculate will drastically impact my cashflow and profits.  What should I do?  Is anyone able to mentor me or give me any ideas?

Thanks!
Erik

exchlbg

You should have made a total overview about all available routes from Bahrain before ordering planes right away. Only that way you are able to plan for the right aircraft.To open up a fleet you need more than just two adequate routes.
Before ordering another fleet type I would try to compete on some routes, where other competitors might fly not regularly or at unadequate times. Be prepared to make losses in the beginning, your company and route image have to grow. Don´t forget marketing.
Still this is a try and error game, the most you learn by personal experience and by reading all available help that is already provided through the
forums.Don´t be afraid to bankrupt and try something new.

Greetings
Christian

mavi

I would still fly a 737 even if you can only get in 2 routes per day.  May not be as profitable, but it will still be profitable.

janesc

I would reenforce what exchlbg said.  I just had a quick look and you have no aircraft on the BAH / DXB route.  Its a very high demand.  I know with a low CI you will not be able to take a large market share, but you should be able to start with one or two flights a day and still get a decent load then add more as your CI improves! (again marketing is key).

Also do not be afraid to go a little further afield.  I am based in the UK and many of my high demand short haul routes are to Turkey, Canaries Islands and Egypt. Its about getting a good balance and not spreading yourself "to thin"!