Cargo route fees

Started by zuluboi, July 13, 2018, 12:10:21 PM

zuluboi

Hey guy,

can someone please explain to me why cargo route fees are so high versus normal pax flights. I own majority of my 737F's to maximize profits but the route fees are killing me.

paddk989

I am not able to answer your question but you have reason to ask. My cargo route fees in GW4 are about 15% of the cargo income, but your figure is 64%. An explanation is definitely required.

Tha_Ape

Not absolutely sure as you don't provide many details, but one possibility could be the length of the route.
The fees are the same no matter what the distance is (the loader has to move 100 Kg no matter if it travelled 100nm or 5000nm), thus fees are killing really short routes.
Not sure where the breakeven point is, it will depend on your fleet efficiency and such other things, but usually 300nm is well enough to offset it.

jezbanks

Yeah, I can see how having planes 'only' making 1/2m profit per week is a complete killer.

I'm amazed you've survived this long...

gazzz0x2z

Quote from: jezbanks on July 14, 2018, 02:02:31 AM
Yeah, I can see how having planes 'only' making 1/2m profit per week is a complete killer.

I'm amazed you've survived this long...

for a large aircraft, it's not ipmressive, but it's enough to survive, counting staff costs & others. For a very large(though it depends on the kind of very large), it would not be enough to be profitable.

zuluboi

Hey guys thank you for the replies, I usually have about 3/4 routes scheduled per aircraft on domestic runs, a lot of my normal domestic flights on my narrow gets scheduled the same but route fees are not as high as my cargo flights.

zuluboi

#6
And if you look at the route fees on this pax flight with cargo with a similar amount of flights, the fees are way less compared
to pure cargo flights.  :-\ it's 331,668USD

zuluboi

Quote from: jezbanks on July 14, 2018, 02:02:31 AM
Yeah, I can see how having planes 'only' making 1/2m profit per week is a complete killer.

I'm amazed you've survived this long...

I have no idea, I've been slowly raising my prices... I'm making money but my margins are not great

groundbum2

ground handling for cargo is VERY expensive compared to passengers. See the photo below of my airline in GW4. Pax revenue was 60M last week, cargo rev 12M. Yet ground handling for cargo was 2x the handling for pax. I'm not complaining, my cargo planes make a lot of money and fly at times passengers jets are grounded so I'm a happy bunny. This is from INCOME under OFFICE menu.

dmoose42

I have interpreted the high handling fees for cargo to be effectively a game balancing mechanism more than anything else. I agree they seem high relative to the PAX fees though.

gazzz0x2z

cargo fees are not distance dependant. Many pax fees(especially navigation) are distance dependant. So short range cargo is meh, while long range cargo is kickass. Unlike pax operations.