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Author Topic: Losing money when opening a new base airport  (Read 214 times)

Offline Ocean1234

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Losing money when opening a new base airport
« on: January 01, 2021, 11:29:16 PM »
About a while ago, i opened a new base airport at SFO. But after opening it, i started to lose money, then i closed it.

I want to add a base airport at MCO, but i don't know if im gonna lose money.

Offline groundbum2

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Re: Losing money when opening a new base airport
« Reply #1 on: January 02, 2021, 12:59:43 AM »
is there a question in there?

do a route planning from the proposed airport, in this case to the USA, and spot check pages 1 and 2, ie every 3rd or 4th airport. Should give you a good idea whether it's worth it. Check it has slots. Check who is already there and whether they are any good (check players achievements for level 3 and above). These days eyeball for cargo.

You can route plan for any airport in the world, the easiest way is routes menu, go down to airport information, enter your proposed hub, right hand side under the map "route planning from this airport".

S

Offline knobbygb

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Re: Losing money when opening a new base airport
« Reply #2 on: January 06, 2021, 10:12:04 AM »
Opening base airports is very expensive in terms of the staff required unless you plan a pretty large operation there.  Probably 20+ aircraft is a bare minimum to make the overhead worthwhile and I tend to not open a base unless I plan to locate at least 50 a/c there.  As you open a new base, you will naturally have a lot of new routes opening all at once, which will be a large drain on profits for a while. Give it a few months, with enough a/c there and it's difficult not to be profitable at a large airport unless you've made very basic errors. 

As you open your next base, just take a snapshot of staff requirements before and after and you'll see where the money is going.  Depending on your size, it can require 100+ staff even before you launch a single new route!

Also, be careful just how you are calculating what profit a base is making.  They actually tend to look MORE profitable than they really are because a lot of the overhead is assigned to the HQ in the accounting. Some of the staff required for the base are still actually located at the HW and ALL the staff training cost is applied to HQ too.  As an example - in my current 8-base airline, HQ only shows around 6% profit while all my bases are 30% to 35% yet I know for sure that the HQ routes are just as profitable as others.  I know this doesn't help you in your current predicament as you are experiencing the opposite, but it's something to remember for the future.

Online Karl

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Re: Losing money when opening a new base airport
« Reply #3 on: January 06, 2021, 02:57:26 PM »

They actually tend to look MORE profitable than they really are because a lot of the overhead is assigned to the HQ in the accounting. Some of the staff required for the base are still actually located at the HW and ALL the staff training cost is applied to HQ too.  As an example - in my current 8-base airline, HQ only shows around 6% profit while all my bases are 30% to 35% yet I know for sure that the HQ routes are just as profitable as others.

This is true.  So, to help out: couldn't/shouldn't these expenses be listed separately in the HQ accounts?

Offline gazzz0x2z

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Re: Losing money when opening a new base airport
« Reply #4 on: January 06, 2021, 04:10:38 PM »
This is true.  So, to help out: couldn't/shouldn't these expenses be listed separately in the HQ accounts?

would be less realistic, but more playable IMHO. My HQ in BSL is apparently losing money - even though I am notably unopposed here, unlike my base in MRS under heavy attack, and still somewhat profitable... Some analytics accounting would be welcome, indeed.

Company marketing is listed in the HQ, and for a company like mine whose HQ airport is small, it just makes no sense. But it's not that easy to find out how to balance company marketing upon 8 different bases.

 

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