Long-haul rutes

[Andrej720918]

Hello fello CEOs!

I have started BW2 with a local airline based at EDDM, and now operating 10 ATRs with a decent profit and growth. I wish to try long-haul flights with 7-day scheduling, but I am not sure if it is possible to generate profit with long-haul flights. Any experience?

Thanks in advance.

[gazzz0x2z]

up to 8000NM, it's largely possible. Though the real money is usually done below 6500NM.

The thing is, when you open a route, its image is low, and so is its load factor. On very short routes, it's not a problem, a 35% filled ATR can break even if he flies at least 3 times a day. But while a 90% filled 777 makes a lot of money it loses a lot of money when it's only 50% filled. Because costs are extreme, at those distance.

In other words, you need to lose a lot of money before earning some. Its a long-term prospect. So it is often advised to own a strong local network that makes a lot of profit before going long haul.

[freshmore]

I would add it's worth working out where the best Long Haul routes are for you, good demand and relatively short range. If you are in Europe, you will likely have good Transatlantic demand with some good Asian routes, North America you have Europe and South America. So you would concentrate most on building these networks because they are the shorter high demand LH routes. I would concentrate more on routes up to 6000nm initially, anything further is much more marginal on making money if you are not careful. North America to Asia is quite far, so it's better to concentrate elsewhere and it's always best to concentrate on where the is least competition as much as possible.

[Andrej720918]

I see. What would be the minimum passenger demand that could make a route profitable? Around 200-250? Which long haul plane would you suggest to start with? Maybe B767?

[gazzz0x2z]

I see. What would be the minimum passenger demand that could make a route profitable? Around 200-250? Which long haul plane would you suggest to start with? Maybe B767?

Enough demand to fill the plane in normal seatings up to 6000NM. The further you go, the more demand you need(to be able to increase prices even more). Beyond 8000NM, you'll need vast amounts of unserved demand an price micromanagement to make really good money on the line.

[Andrej720918]

Thanks for the hints. Now it will turn out how my long-haul plane will operate. I have leased a 767-200ER for 1 year, and I have filled its schedule quite decently. When route image will run up, and my plane is filled, I can bring in the next one and shift the schedule by one day. 

Indeed will take a long time until these routes will generate any profit, but luckily I have 20 ATRs and 7 E195LRs to compensate the loss on this single B762 easily.

[chwatuva]

When route image will run up, and my plane is filled, I can bring in the next one and shift the schedule by one day.

This sounds like you have 1 767 flying with a 7 day schedule, likely to 5 or more different destinations.  If this is wrong, please disregard this message.  If that is the case, however, understand that this is an ok strategy (not good though) for beginners world but is not viable in the worlds with normal difficulty.  Flying to a particular destination only once per week will really slow your route image growing for those routes--and will delay how long it takes for them to become profitable. 

[freshmore]

There's nothing wrong with it in whatever world because they are planning to extend the schedule to more aircraft when they have money. It does make a point though, is it's worth adding more aircraft to the schedule to help the RI build even before you are making money. As long as you have good demand.