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Author Topic: Not profitable. Help  (Read 1091 times)

Online Andre090904

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Re: Not profitable. Help
« Reply #20 on: June 05, 2019, 08:09:51 PM »
Yes...it's usually a good way to get started. You can see that it picked a good route with Beirut. Obviously the feature isn't flawless. Also not sure about the aircraft. About 15 yrs old. Is the D-Check due soon?

The start is the most important part of all airlines. When you can't get enough passengers quickly, you simply won't have money to expand. You need juicy routes. The one the system picked for you (Tunis/Agadir) are not good I am afraid.

Offline Royo1234

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Re: Not profitable. Help
« Reply #21 on: June 05, 2019, 08:10:45 PM »
How do I pick the best routes?

Online Andre090904

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Re: Not profitable. Help
« Reply #22 on: June 05, 2019, 08:19:11 PM »
Your main goal will always be to fill your airplanes. Why? Because full airplanes get you money. When your aircrafts are full, you can increase your prices (aka get even more money).

How do you get full airplanes? Ideally by flying routes with good demand which is not yet supplied. Or by flying smaller aircraft (smaller aircrafts are easier to fill).

How do you find adequate routes? Just look out for airports/routes which have free demand. Or routes where you can fill your aircrafts even though the demand is filled. If a route has a demand of about 100 and the current supply is 150 (3 flights), then adding your flight (a 4th flight in total) will just get you a small market share/load factor. Simple math. Your Beirut route has a demand of 180 and 0 supply. Obviously the passengers have no choice but to fly with your airline if you open that route. Jackpot. Look for similar routes.

Offline Royo1234

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Re: Not profitable. Help
« Reply #23 on: June 05, 2019, 08:21:04 PM »
So since my connies have 80 seats, would a demand of say 100 with no supply be profitable for me? I've been trying to go for the big demands that already are big supplied but hoping to get some of the market share.

Online Andre090904

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Re: Not profitable. Help
« Reply #24 on: June 05, 2019, 08:41:08 PM »
Yes, of course. If nobody else flies a route, you are getting 100% of the demand and you determine the prices (monopoly). Note that you will still need a good route and company image. If nobody knows your airline or that you fly a specific route, you won't get full planes. Usually, route images takes about a year to reach 100. With a company image of about 30 you will still make good money instantly.

As a general rule you can calculate: Demand / number of flights = passengers per flight

For example: 100 demand, 4 flights = 25 passengers per flight

Of course this is very simplified. Things like price, route image, company image, seating configuration, departure/arrival time etc. all influence the final numbers. But anyways, let's assume this rule works. If you have 25 passengers per flight on a 80-seater aircraft, your aircraft is not even half full. This can't work out economically. However, if you fly a 40-seater, this may be profitable.

Flying the Super Connies, your goal should be to get them at least 60% full (~50 sold seats). If you can't get these numbers using the calculation above, don't even consider to fly that route (at least not with that airplane).

Again, this is a very basic rule. There are some advanced strategies etc., but let's not get into that at this stage.
« Last Edit: June 05, 2019, 08:44:45 PM by Andre090904 »

Offline Royo1234

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Re: Not profitable. Help
« Reply #25 on: June 05, 2019, 08:43:18 PM »
Ok. Thank you. I'll take all that on board. Thanks for all your patience.

Online Andre090904

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Re: Not profitable. Help
« Reply #26 on: June 05, 2019, 08:45:12 PM »
Just edited the previous post and added something for you. Hope it helps!

Offline Royo1234

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Re: Not profitable. Help
« Reply #27 on: June 05, 2019, 08:46:00 PM »
Thank you.

Offline Royo1234

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Re: Not profitable. Help
« Reply #28 on: June 05, 2019, 08:47:05 PM »
Just edited the previous post and added something for you. Hope it helps!

Another thing, actually. If a flight is supplied but under supplied, should I fly it?

Online Andre090904

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Re: Not profitable. Help
« Reply #29 on: June 05, 2019, 08:50:07 PM »
Depends. Use the calculation above to find out how many seats you would probably get. If the result is 60+ seats, it might be worth it. I am saying "might" because there are other factors that play an important role. For example, does the route fit into the schedule? Or is the distance reasonable? The longer the distance, the more time is needed to reach that destination and the less flights will fit into the aircraft's schedule.

Your aim is: Find good/free demand with the shortest distances possible.

Again, there are many different strategies...but this usually works best.

Offline Royo1234

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Re: Not profitable. Help
« Reply #30 on: June 05, 2019, 08:54:15 PM »
Fantastic.  Thank you.

Offline knobbygb

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Re: Not profitable. Help
« Reply #31 on: June 06, 2019, 05:46:55 AM »
I like the two routes you have changed to and there are quite a few more in the range of your Connies (some 2000nm+). Just keep the scheduling tight, add a couple more aircraft and be patient and you should be fine.

 

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