big and bust

[ban2]

i noticed today that the used ac list has lots of aircraft on sale from busted airlines who had quite big fleets and seemed to be succesful in game. is this a case of them getting to big too soon? anyone know why they got into trouble?

[Talentz]

Which airlines are you talking about?

~ Could be a number of reasons. In game 1, were close to mid point in the game. Which means alot of leased 3-4 year fleets are expiring. Plus, D checks are due for a number of those aircraft. If players dont keep an eye out, they could get sucked into D checks and such.

~Another reason is C check seasons. Every airline goes through one. By mistake or chance. What it means is somehow, alot of aircraft have there C checks due all in the same time frame. (ex: I just had 56 C checks (16 747s) this past 1 month.) If airlines A.) dont have the money to pay for C checks and/or B.) Cant live through the wave of C checks (reduced income) then they could go belly up. This is a big killer, later in the game.

~Lasty, as the world continues to grow, routes are getting filled. Everyones yields start getting lower and lower b/c of over competition. This is a dangerous time for smaller/weaker positioned airlines. If your still living week to week on profits, chances are you'll end up BK. The best thing to do at this time is to reduce your overhead costs. Make your airline more and more efficient. That way, your operating costs get lower, instead of raising.

The fact is, as time goes on, your operating costs will always go up. It doesnt go down. So you should always look to reduce costs. Thats the best and safest play.



Talentz

[ban2]

thanks talentz, sound advice

[Dazwalsh]

Which is why when you see airlines getting big very quickly dont always assume they will be uncatchable! they might drop along the way and if you have a sound plan of operations for your own airline you can pick up those peices

[Seattle]

I think your talking about Aquablue Airlines 

I had around 12 million after making a large order.... however Sami wasnt answering any of my question s about if he was gonig to raise the demand from Algeirs, as for most European and Middle East flights the demand was 80-180 one way and 270-500 the other way.... So I had to many planes that couldnt be filled and they were eating up my money and then I was struck down by the mighty C-check god to about -25 mill, which I could've gotten out of in a bout 1 real day, but I was to lazy so I bked. 

[JJP]

Talk about big and bust.  I just visited the used aircraft market in Sim1 and, holy cow, TONS of aircraft from 2 or 3 airlines that went belly up.   

[isuzu777]

I have 110 aircraft in game 2 and might go belly up soon, trying to avoid it but it's getting kind of tough... I don't know where I went wrong in this game, in the demo I did amazing, more money coming in than I could spend.

Main problems are:

1. Being in the same airport as an airline doing over 700,000 pax/week. But this is just like the real world. Not being able to originate flights out of any airport other than your home airport is a big, big limit, especially when the much larger airlines starts taking over the lower demand routes you rely on. You can pretty much forget about it at that point, since you can't tap demand at untapped airports.

2. Choosing to use Lockheed Tristars, huge maintenance cost and low profits. I am trying to get rid of them but don't have enough money to end the leases early!

[deepblue501]

some people simply don't want to continue playing and make their airlines go bankrupt. At least they free up slots that way i/o just not going online anymore and occupying slots others could use..