Company Image

[Bill Miller]

Could someone look at my airline and tell me why my company value has been stuck at 20 the whole game, never going up. Thanks.

Bill (Helzo Airlines - Modern Times 7)

[exchlbg]

Sorry, noone can look into your airline that deep, except he is a game mentor. But the answer is easy: spend more money. Whenever your CI gets stuck, you need to advertize even more to make it rise.At the beginning one marketing campaign is enough (til around 20, like now).
Now you have to start bigger campaigns until it gets stuck again....and so on...
Besides, it´s not company value, it´s company image we´re talking about ?
Look under office/marketing.

[Mr.HP]

Try spending about 500-800K weekly in marketing. And for a regional airline, sami said that 30-50 CI is good enough

[Karl]

Try spending about 500-800K weekly in marketing. And for a regional airline, sami said that 30-50 CI is good enough

But I have found that the "Catch 22" is that spending more on advertising may increase your company image, but it eats at your bottom line.  For a small regional carrier, increasing advertising does not seem to bring in enough ticket sales to cover the cost of the increased advertising.  So which poison (route to bankruptcy) do you want to choose?

[brique]

My rule of thumb is to aim to spend about 10-15% of revenue on general marketing : that gives you a good base to work from and, if your airline is generally profitable, should get you into the 30-50 range which is, as stated above, good enough for a regional operation. Above that level of spend, you need a sensible reason for it : as in pushing on to routes with C/F demand you want to grab or with competition you need to match up to. Once your routes are established and your airline is making good profits, that's when you can decide to up the spend to higher levels, to enhance your reputation with the banks and potential extra customers.

You might also want to look at your delay/cancel rates ; they can push CI down very fast if they get out of hand, if so, you'll be wasting cash pushing it back up when simple fixes like ensuring adequate turn-around times and maintenance can be far cheaper.