Help! i am a bit furious

[Sergio]

So, i know it is bad idea to grab 747 in the begining, must be 737 and fly to small airports. but i am lazy. and i won sometime, like in Hong Kong, or what ever it is called now. 747 100% business and first class. )))

so, i see that my losses are reducing, but somethnig happened at week 18. i dont get idea what.

[Sergio]

yes, i had crazy week of railroad strike (must tell to included this to railroad tyccoonn)

[Sergio]

and i checked change in liquid funds, which i thought is based on profit

[Sergio]

week 18 was my last "profitable", i mean positive change in funds week

[Sergio]

i made small effort to type it in excel

[Sergio]

and chekded also every line of expences, they did not grow, they even reduced a bit after week 18

[Sergio]

so my question is: where is my money?
this strategy worked well in 2010-2017, 2019. i go with big planes in big minus, but it bounces back to up above zero into the green digits.

Bill Gates: “Well, sales minus cost equals profit. Is there anything else?”

forgot to mention - i also dont pay taxes this way, at least in the beginning.

[MikeS]

Hi Sergio,

without actually looking at all the info you sent, just a reminder that might be relevant here too: When you lease aircraft you pay 4 months of lease up front so you'll notice a nice positive cash flow at the beginning while profits are probably in the red. Once the 4 months are over, you'll start paying leases regularly so you'll see a sudden drop in cash flow.
This is very prominent when you start up.

Cheers!
Mike

Edit: You mention week 18 being the last one with positive funds, that is where your actual lease payments started. They are considerable for B747, especially early on with their $150m+ price tags.

[schro]

First, the manual's accounting primer may be helpful - https://www.airwaysim.com/game/Manual/Office/Accounting/ as you're flipping between income statement and cashflow statement rather fluidly. Per MikeS, on the cashflow side, after 4 months, your prepaid lease fees run out and you start having to pay for the lease out of cashflow (while the expense is constant).

Next up, I have no idea where you're based or what's going on in the game world. But if you're trying to be successful with a single airplane, that's rather difficult to do as there's a ton of overhead costs that can't be easily amortized by dividing by 1 in this game. If you don't quickly claw your way up to a half dozen to a dozen planes, you will have a difficult time getting a toe hold.

I can't tell from your potato quality screen shots whether your revenue has stalled or your costs have increased. Can you clarify what has changed?

You should also consider that your expenses change based on the number of days in the month. Staff salaries, for example, carry a monthly cost, but are billed daily. Thus, February with 28 days will have a higher staff cost than January with 31 days (as some number divided by 31 is smaller than the same number divided by 28).

Then, let's talk competition and pricing. If your revenue is the issue here, then perhaps you've had some competition introduced to the route. Perhaps your RI has not risen as high as it should ( as it seems you're less than 6 months into the game, so RI is likely around 50).

[StarBeam1]

  potato quality.... bursting in laughter....

To be real, i like the effort though, at least poor sergio is trying.... i will be interested to see how the correlation of your line graphs look like by Q4... 

How many times have you started an airline this way and how often did it work?

[Sergio]

MY TICKET DICOUNTS. SO I HAVE NEIGBOURS. I HAVE 1/3 (33%) OF SUPPLY. i just cant make any prifot.
my loads factoer dropping when i have full price. it climbs bit by bit with 25-30 price.
of, i remebered, these last hight rise in load - that was 50% discount.
even with 15% discount i am dropping. not to say about full rpice.
goddamnd.

[Sergio]

why here i get only 60% load factor???

as passenger they woudl b=prefer bigger newer 0plane. so?? where are my passenger??
fak zis game, i am leaving aws.

[ArcherII]

Several factors come into play the moment the passenger chooses what plane to fly. CI, RI, day flight or redeye, and also pricing (but not to the extent you think it does).

In a hypothetical route where the demand is 300, and three airlines fly one once per day, if all those factors above are the same for each airline, the demand will be allocated in equal parts to each flight. That is, a 100 pax per flight.

So, if you have an A321 , you would barely have an LF of above 50%. If the other two airlines have Embraer 195s, they would be close to 95% LF. That's how some of the mechanics in this game work.

Also, discounting below 20% is futile. LF won't rise the amount you expect it would, and your revenue will be down hard. I recommend never discount tickets. At the very least, hold them to the standard pricing, and raise the prices where your LF is 80-90%.