Marketing Question

[TPMP]

I've just started a new airline, but currently dont have any aircraft (I have 4 on order). Since starting the airline a day or two ago, my company image has stayed at 5, despite the fact that I have been spending 50k ish on marketing. Is this due to the fact that I have no aircraft, and once they start delivering it will go up?

[Infinity]

Ordering new planes in the beginning is not very smart, but doing marketing before you have any revenue is near suicidal.

/e I guess i should add some productivity... Yes, Image will go up once you start flying. 5-10% of revenue is a good base for marketing.

[TPMP]

Thanks for answering. I only have a few more hours till my first aircraft arrives and I still have a nice wedge in cash so I can assure you my airline is in good hands!

Thanks again for clarifying.

[Kadachiman]

4 X SAAB 2000 would have cost $4.5M to lease ....so do you really have enough money to put schedules on the aircraft after marketing money etc has been going out with no income
It may be that you have left yourself a bit short to be able to buy slots.

If you are going to operate a Regional airline you can keep your CI a lot lower saving many $$$$ in the long run.

[TPMP]

Ordering my aircraft didnt cost 4.5m. Anyway, I still have 2.6m which is more then enough to put schedules on them.

[Kadachiman]

I must be doing something wrong then and I wish I knew what it was as it would save me a lot of money
I select new aircraft, 4 x SAAB 2000 for 15 year leases (I would not normally do 15 years) keep seating etc standard and the cost is $4.45M
Can you let me know how I should be doing it so that I can save a fortune, thanks.

[TPMP]

I leased them for 5 years at a cost of 3.99m according to my cash flow statement. No idea how as its a lot more expensive when I try and do it now.

[Kadachiman]

You must have got them as a launch customer so an additional 10% off, as the maths adds up then

[TPMP]

Ah yes! I had forgotten about that.