Strategy change opinion

Started by arefixz, February 06, 2017, 03:29:40 PM

arefixz

Hey guys, lets say you in a situation.

Since beginning, you started developing and expanding routes and everything went well until competition and price war became your turnmoil. But by this time, you found possible second strategy of opening second base. This second base is empty and not based by other airline but the demand is low(regional) and might improve time by time.

With your profit decreasing time by time, money gain will be rolled to get another aircraft. By your decision, would you choose to invest in second aircraft type and expand new longhaul 4000nm routes that still free (which probably not much left and soon gets competed by same/away base airline), or increasing frequency and fight for low fare hoping rival will retract their schedule, or continue on second base and invest in regional aircraft (fresh empty airport with alot of 200nm route but low demand around 50~).

Which strategy would be the best choice to make more profit?? Thanks  ;D ;D

gazzz0x2z

"it depends". Standard engineer's answer.

It depends on many criterion. For example, Long haul can be very profitable, but is usually long to be profitable. Do you have enough cash in reserve to set up the lines? By comparison, regional will yield quicker, less riksy results, but lower on the long term. Waging a price war also is usually a bad idea. It costs you far more than it costs your opponent.

There are plenty of other things to take in account. What is the strategy of your opponent? What is his health? Is it a big country with plenty of opponents here and there, or a small country with just the both of you? What era is it? Is the game still overcrowded, or nearing the end and already depleted? What is your current fleet structure(homogeneity, age, leased/bought, medium/large, etc....)?

pascaly

#2
It's been a while since I've flown LH, but if it were me, I'd look to increase my CI (and RI if possible), look to offer slightly below market rate F and C seats. I'd also look at his fleet vs yours. If you can invest in slightly faster or more efficient aircraft or look to make better use of what you have. If you can get 1 or 2 hours a day total time in the air each day over your fleet, you'll do better as well. An extra turn each day can make all the difference. Even fly out late and return first thing (red eye) to make better use of your planes and add a little more flight time to your fleet.

If there's unflown routes (LH or otherwise) chances are, your competition will fly them eventually. If you can afford it, get a head start on them and make them think twice about starting them.