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Author Topic: Please evaluate my airline and give any possible advice  (Read 1051 times)

Offline isuzu777

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  • Posts: 380
Please evaluate my airline and give any possible advice
« on: February 13, 2009, 07:44:39 AM »
Hi everyone, I am still kind of new to this and I was hoping you could provide some advice.

I played one of the demos, coming in relatively late to it, and was able to be the top airline with over 500,000 pax/week and more money than I could spend.

However, I have hit a dead end in game 2. I can't seem to turn a profit despite being #25 in pax with 330,000 pax/week.

I really don't know what is wrong, it seems I struggle just to get through C check seasons without going bankrupt. The biggest hurdle is being based at Dallas/Ft Worth with the largest airline in the game, but I don't think that is the root of the problem. Here are some numbers and facts and tell me if you see anything wrong here, ie aircraft choice and the like.

All the airline info is here: https://www.airwaysim.com/game/Info/Others/Airline476

SONATA AIRWAYS-

Airline home base             Dallas - Fort Worth (DFW), United States
Transported passengers    Last 4 weeks: 1 343 938 pax
Value                          -14 773 008 USD
Founded                           14-Mar-1993


Model      Number      Average age
Airbus A310-300 (Leased)    5    9.1 y
Boeing 737-200Adv (Leased)    71    18.1 y
Boeing 737-500 (Leased)    2    6.4 y
Boeing 767-200 (Leased)    2    9.8 y
Boeing 767-200ER (Leased)    4    10.1 y
Boeing 767-300 (Leased)    4    9.3 y
Boeing 767-300ER (Leased)    3    7.1 y
Fokker 50 Mk 100 (Leased)    25    9.2 y

Lockheed L-1011 TriStar 200 (Leased)    2    12.8 y                       (IN THE PROCESS OF PHASING OUT LOCKHEED TRISTARS)
Lockheed L-1011 TriStar 500 (Leased)    8    14.2 y                (they make okay money on long hauls, but C and D checks are killers)

Total:    126    14.53 y

Pending orders
Boeing 767-200ER    4                                                         (Switching Lockheeds to 767-200 and 300 ERs)


AVG. LOAD FACTORS:

Y- 88%
C- 74%
F- 54%


INCOME STATEMENTS FOR LAST 2 WEEKS (approx $):


                                           WEEK 7                           WEEK 6

TICKET INCOME:                   $58.5 million                        $60 million

EXPENDITURES:                     $62 million                      $61.5 million

RESULT:                            - 3.5 million                          -1.5 million


Expenditures in detail:

FUEL:                                      $8 mil                             $8.3 mil

STAFF SALARIES:                     $14.7 mil                         $14.7 mil

STAFF TRAINING:                      $3.1 mil                           $3.1 mil

MARKETING:                              $2.7 mil                         $2.7 mil

PASSENGER FEES:                           5.5 mil                        5.5 mil

NAVIGATION FEES:                          3 mil                            3 mil

LANDING FEES:                               1.6 mil                            1.6 mil

GROUND HANDLING:                         2.7 mil                             2.8 mil

MAINTENANCE:                              8.7 mil                               7.7 mil

INSURANCE:                                   1.6 mil                              1.6 mil

LEASES:                                       10.1 mil                             10.1 mil



To me, it seems like staff training is wayyyyyy too much, I have read other posts about it, but I doubt an airline could spend that much 1/5 of its total weekly salary payout on weekly training, especially when finances are as bad as mine are.....


My current plan is to phase out the Lockheeds (which cost wayyy too much to maintain) and replace with 767s, and then stop leasing 737-200s (high c check cost) and move to better 737-500s.

Also, I am not doing so well with my Airbus A-310s. They are low cost to maintain but for some reason I am cursed with them never being profitable.

I also am wondering if I should continue to buy 767s. What is everyone's experience with them cost-wise? Also, what about 757s, I have read good things about them being economical to run, but is it worth adding another fleet group maintenance cost if I only have enough money to lease out a couple each month?


ANY ADVICE WOULD BE GREATLY APPRECIATED!!!

Thanks,
Matt
« Last Edit: February 13, 2009, 07:48:10 AM by isuzu777 »
~Sonata Airlines- Song of the Skies~

Talentz

  • Former member
Re: Please evaluate my airline and give any possible advice
« Reply #1 on: February 13, 2009, 08:31:09 AM »
Hmm well, staff training is directly tied to fleet commonality. Horrid fleet comm = high staff training.

So lets start there.  Since you dont like the A310s, should drop them. Any aircraft fleet under 10 has a very high cost per plane in fleet commonality costs. That also means those 735s are probably making little profits after you factor in fleet common costs.

Btw, the income sheet doesnt include labor costs per aircraft or fleet common costs per aircraft as well.

Anywho, you should have started replacing the 732As back in 1995. When you start up, the goal is by the time your starter aircraft's leases are up (2-3yrs), you should have enough money and/or have a new aircraft on order to replace it. Old aircraft are ok, with cheap labor and fleet comm costs at the start. However, after a few years, profit margins fall off a cliff and you start to kill yourself slowly.

Same with the Lockheeds. Either replace them early on, or buy them for very cheap price. Even though there old and not as efficient as say the 763.. there about 15-25M cheaper..  So an owned Tristar will make about as much money as a leased 763.. but.. you have a "loan" option on that aircraft wheres the 763 you dont own. Comes in handy later on when you need more cash on hand. Plus, putting an ownd aircraft on a heavy competitive route will mean you can "afford" to charge a cheaper prices where someone with a leased aircraft .. has to pay a lease  ;)



Other then that, I couldnt tell anymore about your airline. Routes, aircraft choice for routes... ect..

Also, you mentioned D checks.. unless you own that aircraft.. and will continue to fly it for years.. never pay for a D check. 100% never pay for one while you lease it as well. Its a waste of money. Just drop it and grab another plane.

Quote
I also am wondering if I should continue to buy 767s. What is everyone's experience with them cost-wise? Also, what about 757s, I have read good things about them being economical to run, but is it worth adding another fleet group maintenance cost if I only have enough money to lease out a couple each month?

Yes, use 767s to expand/replace the older aircraft. Since you have it in the fleet already, make the best of it. If that means making 5-6 different configurations for different routes/missions. So be it. Making a configuration costs almost nothing compared to adding a new fleet type for niche routes/roles.

Mm.. Honestly, if you dont see your self having more then 30 aircraft in a fleet type.. you shouldnt really bother with it. Remember that you need at least 10 of one fleet type just to get good fleet common costs per aircraft. Anything lower and per aircraft costs are off the charts.

So no.. I would suggest for now, domestically configure some 762s for those 752 routes your looking at.


Hope this helps


Talentz



Online Sami

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Re: Please evaluate my airline and give any possible advice
« Reply #2 on: February 13, 2009, 04:27:42 PM »
1 regional type (F50)
1 narrowbody type (737)
and three longhaul types (A310, L1011, B767)     <-- there's the problem.


Also check the ticket prices, as the fleet is not the full answer. With a fleet of nearly 100 short/med range planes you should be well in profit. You are probably selling for too cheap... The lease/insurance costs are also quite huge.

Offline isuzu777

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  • Posts: 380
Re: Please evaluate my airline and give any possible advice
« Reply #3 on: February 15, 2009, 06:25:52 AM »
Thanks for the advice!

Yes, I am currently phasing out the Lockheeds one by one and things are improving immediately. Also, I will not renew the Airbus leases and instead focus on carious 767 models to get things done.

Things are already a lot better, making decent profits, and just passed 400,000 pax/week!!
~Sonata Airlines- Song of the Skies~

luke3

  • Former member
Re: Please evaluate my airline and give any possible advice
« Reply #4 on: February 20, 2009, 07:55:23 PM »
This topic is really interesting, may I ask if anyone is willing to do the same with my airline?

https://www.airwaysim.com/game/Info/Others/Airline270

I've noticed that since i've expanded onto the long haul market, my profits have gotten slimmer and slimmer, and now i've just got out of the massacre C Check season, managing fortunately to make it through still in the green, although with only 4 milion.

My fleet philosophy is the following:
DC-9 for short haul (domestic/intra-european)
727 for medium haul
747SP for high demand longhaul
A310 for low demand longhaul

I think maybe the problem could be the average age and a few commonality issues. I thought that i could maybe for first phase out all the RR powered 747s and replace them with GE powered ones as to take out one engine manufacturer, but that's a hard to achieve on the used market. Or maybe I could substitute the 727s with A310s, since i've configured them pretty much in similar ways meaning they won't exceed demand on the routes. This would take an aircraft type out and lower average age, maybe letting me save some money on maintainence. Any suggestions?

Kontio

  • Former member
Re: Please evaluate my airline and give any possible advice
« Reply #5 on: February 20, 2009, 08:11:25 PM »
I think maybe the problem could be the average age and a few commonality issues. I thought that i could maybe for first phase out all the RR powered 747s and replace them with GE powered ones as to take out one engine manufacturer, but that's a hard to achieve on the used market. Or maybe I could substitute the 727s with A310s, since i've configured them pretty much in similar ways meaning they won't exceed demand on the routes. This would take an aircraft type out and lower average age, maybe letting me save some money on maintainence. Any suggestions?

The main thing that comes to mind is that considering the number of aircraft you operate you really could do with one less fleet type. Replacing the 727s with A310 could be a good idea. Engine commonality would be nice, but I don't even try to achieve that when leasing.

Online Sami

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Re: Please evaluate my airline and give any possible advice
« Reply #6 on: February 20, 2009, 10:39:53 PM »
DC-9, 727, 747SP .. all old models to be operated in late 1990s. Or going to be soon at least.

The dc9 kinda works still but would loose the Boeings. (or DC-9 if you need big capacity at shorthaul routes)

 

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