RPK, ASK and Profit

[fxtorres]

Hi:

I'm here again trying to cope with RPK and ASK. I've asked before about these two concepts and you have answered me quite gently, but I'm afraid I'm in a complete mess again...

Just to simplify, I would like to know your opinion: I've got two routes, with the following figures:

Route A: RPK 6,91c - ASK 2,14c - Profit: 28.267 USD
Route B: RPK 7,34c - ASK 2,77c - Profit: 23.804 USD

In terms of RPK and ASK, Route B is better than A, but in terms of profit it is the other way round. So: Which is the best route? 

If you had to close one of them, which would you close?

Thanx!

[Superbenj]

Assuming A is longer, it will depend on if you can utilise the time savings made by route B

If A allows you to fit another couple of sectors into the day, then obviously it is better, if not and the aircraft will just sit Idle then B is better

[schro]

You didn't say how long of a flight each is, but given the numbers you have presented, they are similar. I suggest reading this post https://www.airwaysim.com/forum/index.php/topic,24867.msg125287.html#msg125287

In short rpk/apk is fairly worthless in the Sim.

[fxtorres]

Both are similar long routes, flown by a 757, and they are the only routes these aircraft can fly. The rest of the day, aircraft have to be idle.

[schro]

So, the route that has the highest profit will be best for you.

[Infinity]

Shorter routes will most times have higher yield and revenue per seat kilometer values, that's just how it works. Nothing to despair about.

[fxtorres]

I understand that, for an airline, RPK and ASK is not that important whereas the profit is good enough.

But then, how should RPK and ASK be interpreted in the statistics of an airline? What do those concepts mean in the statistics page?   

[schro]

I understand that, for an airline, RPK and ASK is not that important whereas the profit is good enough.

But then, how should RPK and ASK be interpreted in the statistics of an airline? What do those concepts mean in the statistics page?   

In the context of the game, the most useful scenario for these figures, specifically the RASM figure, is to help you determine if you made a good change for pricing.  Lets say your raise the price on a route by 10% but the LF drops less than that. Your RASM will go up meaning you're making more money at the higher fare price carrying less passengers than you were at the lower price with more passengers.

[Sanabas]

I understand that, for an airline, RPK and ASK is not that important whereas the profit is good enough.

But then, how should RPK and ASK be interpreted in the statistics of an airline? What do those concepts mean in the statistics page?   

Just ignore them. They're irrelevant.

[Infinity]

But then, how should RPK and ASK be interpreted in the statistics of an airline? What do those concepts mean in the statistics page?   

What Sanabas said. They are completely irrelevant for running your airline. Long haul routes will most times inevitably have red yield numbers, but that doesn't mean they are underperforming.

[Solemus]

I have to say that the only column I am interested in is the profit column. As long as my aircraft is making a profit then I am happy.

[schro]

I have to say that the only column I am interested in is the profit column. As long as my aircraft is making a profit then I am happy.

I would not use that number as one to manage your airline with either. It doesn't account for overhead, so you can still go bankrupt when each one of your planes are "making a profit"

[Solemus]

Advice then please Schro ... Which do you watch? 

[schro]

Advice then please Schro ... Which do you watch? 

Depends on the size of my airline and whether it is in a fist fight or not. In general, I tend to run fairly large fleets, so micromanaging at the plane level is fairly difficult to do. When the airline is running well, I will mostly stick to the income statement as well as the passenger graphs on the airline info page at a quick overview level (i.e. popping into a game world for a quick check).

I tend to be fairly consistent with my pricing methodology, the types of airplanes that I will fly on certain types of routes and the amount of demand that I will fill up on a particular route which is all based upon my prior experience playing the game and knowing what will work well for me. When I do make adjustments, it is usually at the route level based upon the desired effect that I want to have (i.e. increase profit, turn screws on competition, etc).

I suppose I don't watch the smaller details anymore as I have spent years playing the game to the point that the general economics of each plane is so I know what will generally work and what will generally not work. I also have rules of thumb in the back of my mind as to what will make a profitable route (i.e. fuel vs revenue, etc) as well as the number of routes a plane needs to make good money. The main problem that most players fall into, especially newer ones, is overreliance on the plane profit number. You can have every single plane making a few hundred thousand per week based upon the My Aircraft page, yet still have an airline that is going broke.

[Solemus]

Thank you for that David it is much appreciated. 
It has taken me quite some time to actually get somewhere in this game. The last two games I have played I have actually lasted and made profits, the rest ...... well down the pan. 

[Sanabas]

None of the stats on the route summary page are very useful for comparing routes, seeing which is better/worse, which should be kept/closed. Profit is sort of useful, but is far more useful to take the raw profit number and adjust it. To things like profit/hr, which does let you compare routes more directly, and is more useful if your airline is smaller/has tight margins.

Most times with a huge or going to be huge airline, some borderline dodgy routes aren't anywhere near enough to hurt the overall numbers, so they get ignored, just keep expanding until there are no slots left or no planes left for you to use or no demand left unfilled.

[Luperco]

In my opinion, those RPK and ASK are a wast of space on the routes list. Would be much more useful other things like the route image, route length, route demand/offer, ecc. ecc.

This would improve the capacity to find the reasons of unprofitable routes without hundreds or thousands of mouse clicks.

[Solemus]

In my opinion, those RPK and ASK are a wast of space on the routes list. Would be much more useful other things like the route image, route length, route demand/offer, ecc. ecc.

This would improve the capacity to find the reasons of unprofitable routes without hundreds or thousands of mouse clicks.

I like this idea 

[gazzz0x2z]

+1000 Also with the number of competiting lines...

[Yarnam]

I agree, can we get rid of these useless columns and put data in there that I need to see.