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Author Topic: Cargo route fees  (Read 314 times)

Offline zuluboi

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Cargo route fees
« on: July 13, 2018, 12:10:21 PM »
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.

Offline paddk989

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Re: Cargo route fees
« Reply #1 on: July 13, 2018, 12:23:08 PM »
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.

Online Tha_Ape

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Re: Cargo route fees
« Reply #2 on: July 13, 2018, 12:29:59 PM »
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.

Offline jezbanks

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Re: Cargo route fees
« Reply #3 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...

Offline gazzz0x2z

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Re: Cargo route fees
« Reply #4 on: July 14, 2018, 11:06:15 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.

Offline zuluboi

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Re: Cargo route fees
« Reply #5 on: July 18, 2018, 09:48:29 PM »
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.

Offline zuluboi

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Re: Cargo route fees
« Reply #6 on: July 18, 2018, 10:09:29 PM »
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
« Last Edit: July 18, 2018, 10:12:27 PM by zuluboi »

Offline zuluboi

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Re: Cargo route fees
« Reply #7 on: July 18, 2018, 10:15:08 PM »
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

Offline groundbum2

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Re: Cargo route fees
« Reply #8 on: July 19, 2018, 05:25:21 PM »
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.

Offline dmoose42

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Re: Cargo route fees
« Reply #9 on: July 19, 2018, 05:29:46 PM »
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.

Offline gazzz0x2z

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Re: Cargo route fees
« Reply #10 on: July 20, 2018, 06:27:42 AM »
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.

 

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