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Author Topic: Petrol price  (Read 425 times)

Offline Juan havana

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Petrol price
« on: September 15, 2019, 05:07:19 AM »
The petrol can go up like this all the time?
i started his GW recently, even with only one fleet type, i can't make any profit, petrol too expensive !

How about you guys?

Offline knobbygb

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Re: Petrol price
« Reply #1 on: September 15, 2019, 07:25:25 AM »
A fuel price rise at the end of the 70s is pretty typical.  You are still making some profit - a lot of people aren't.  Now's the time you really have to knuckle down and pay attention to every tiny detail.  I only had time to look at your airline for 2 minutes but I can see you are doing most things correctly.

Having a second base with only 45 aircraft in your fleet is probably costing you more money than you appear to be making.  I'm not saying close it, but don't open any more!

Your fleet utilization (14.4hrs per day) could be better - with leased aircraft, any time the aircraft is sat around doing nothing is costing you money. The system will also be hiring more staff than is really needed to crew those aircraft. Aim for 17hr+ per day.  You have a reasonable pax. load factor (65%) for this era and you are making 4% profit.  That's pretty much the same as I'm doing.

South America isn't the easiest place to play but you have both your bases to yourself.  Schedule the aircraft more strictly, pay attention to raising your prices where you can (90%+ load factor) and keep every expense under control (not too many staff, not too much on marketing, try to find cheaper leases, avoid heavy maintenance on leased aircraft) and you'll be fine. Probably...


Online gazzz0x2z

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Re: Petrol price
« Reply #2 on: September 15, 2019, 09:50:33 AM »
It's a very hard time to play, TBH. Even alone in Vietnam, I have to be very accurate on scheduling & pricing to stay in the green operationally. I just adjusted all ticket prices above 95% of load factor to make more money. I'll still be oin the red for the month of february,but I hope to be back in the green in march or april.

Offline MikeS

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Re: Petrol price
« Reply #3 on: September 17, 2019, 01:27:25 AM »
It's really tough!
only 91 airlines in the green and only 28 of those with double digit profits. Probably those with plenty of lease income. Operationally it's very hard to stay profitable right now. Hope fuel price goes down soon. Probably in around 6 months' time ... hopefully. Until then have to ring the bank....and those are currently asking for around 20% interest ...pretty tough times...some big airlines already had to close.

Mike

Offline Andre090904

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Re: Petrol price
« Reply #4 on: September 17, 2019, 02:35:11 AM »
I personally hope it never ends. Currently at ~14% operational profit while competitors struggle. I would not mind another year or two. :)
« Last Edit: September 17, 2019, 02:37:35 AM by Andre090904 »

Offline MikeS

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Re: Petrol price
« Reply #5 on: September 17, 2019, 03:34:43 AM »
I personally hope it never ends. Currently at ~14% operational profit while competitors struggle. I would not mind another year or two. :)
You're not making it easy to like ya ...haha... ArrowHead Airways is indeed run very well. You've got good cargo revenue too, I still need to get that set-up....Cheers!

Offline Andre090904

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Re: Petrol price
« Reply #6 on: September 17, 2019, 04:01:55 AM »
Actually the cargo operations are not making me any money. It's costing more than it gets me profits. But I cannot just get rid of it as I'd have way too much staff which I cannot fire that easily without risking a CI decrease. So I just keep flying it...not to mention the slots etc being released...

Online tititaka

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Re: Petrol price
« Reply #7 on: September 17, 2019, 05:16:40 AM »
my operational income is inching to 0% and I'm living on interest right now...

Offline dandan

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Re: Petrol price
« Reply #8 on: September 17, 2019, 05:31:09 AM »
my operational income is inching to 0% and I'm living on interest right now...

isnt it beautiful when you have 10B on the bank account, and all those planes are actually just flying for your entertainment!  8) :P

Offline Juan havana

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Re: Petrol price
« Reply #9 on: September 17, 2019, 08:57:12 PM »
4 months. In the big red  now.... Bank wants to close Airline....
Situation Goes worst each Time....

Offline MikeS

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Re: Petrol price
« Reply #10 on: September 18, 2019, 12:10:11 AM »
Hi Juan,

I had a quick look at your airline. It is probably too late as you've maxed your loans and have no more cash to do changes.
I think you should have been able to make it: You have very little or no opposition on many routes. I would have axed all those B727 flights
with fuel stops and put them on your under served cash cow routes (EXE-LIM, EZE-GYE...etc you can increase prices well above recommended on these as you are the only airline and demand isn't fully met).

Anyways...good luck!
Mike

 

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