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Author Topic: How do I get my company healthy?  (Read 745 times)

Offline Maarten Otto

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How do I get my company healthy?
« on: May 29, 2009, 06:53:58 AM »
Hi everyone... perhaps I am the 765th person in line asking this question... but if that is the case... than AWS has a seriouse problem if it comes to support for newcomers.

How do I get my company healthy? I heve 2 planes on lease.. (couse the game told me that was best if yor new to this). I run a smal plane between Amsterdam and several UK destinations. And a return trip from Amsterdam to Maastricht.

My second plane is a large one wich flys from Amsterdam to Cuba.

Staff wages are high... but nothing compared to the rediculouse amount I pay for fuel...  In fact.. keeping your plane on the ground is economically better than flying that thing.

My bank balance turned in the red already... So what can I do.

juanchopancho

  • Former member
Re: How do I get my company healthy?
« Reply #1 on: May 29, 2009, 07:19:43 AM »
I would start with props with 50 seats & 1000nm range. Even more so now with the really high fuel prices. Put them on routes where you can capture a good load, at least 70% and make sure the routes are covering all your expenses and hopefully make a profit.

Also use only 1 type of aircraft at first. In the beginning you can't afford too many types of aircraft because of fleet commonality expenses. If you have one long range plane that is the one putting you in the red through training costs.

Offline Maarten Otto

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Re: How do I get my company healthy?
« Reply #2 on: May 29, 2009, 08:17:40 AM »
Thanks for the advice...  I never stared my first Airline with profit making in mind. As I already discovered on the forum it is normal to face bankruptancy several times before you get the hang of it. But I have to say I like the game sofar.... even when things go  wrong.

Talentz

  • Former member
Re: How do I get my company healthy?
« Reply #3 on: May 29, 2009, 08:19:47 AM »
Hello there, welcome to AWS.

Quote
perhaps I am the 765th person in line asking this question

No, I wouldnt say we've reached that number...yet  :laugh:

Quote
than AWS has a seriouse problem if it comes to support for newcomers.

AWS does have a learning curve. Although, there is alot of advice here on the forums. Spending 10mins to search through the forum will mostly likely save you 1 or 2 bankruptcies.

Too answer the next question that just popped into your head after reading my above response, I refer you to the game description on the Front Page:
Quote
This realistic aviation management game includes a worldwide airport database, hundreds of aircraft models with realistic performance data and intelligent economic model to enhance the results.


With keeping the above in mind, you can understand why you cant just pick up the game one day and start turning profits. It takes time to understand the gameplay and more importantly, your competition.  :)


~~ Now, lets move to why your airline is losing money:

Game: Air Travel Boom
Airline: CityLinQ  (thats cute)
Base: KHAM/AMS

Well to start, your basing out of a top 10 World Airport several years into the game. Even for an experienced AWSer, this can be difficult. For a newcomer like yourself, it makes it near impossible to survive. It's usually recommended to start out a smaller "Mid-Size" airport. Where the competition is less and the margin for error greater.

But, little good that does us here, right?  :P

So, you started with AMS. Your fleet shows 2 aircraft. One ATR-72 and one Ilyushin Il-62MK. 

The manual does indeed state to lease 2 aircraft, which you have done. However, it also recommends to keep good "Fleet Commonality" by having alot of the same aircraft. By leasing two different classes of aircraft (small and large), you start out on a bad note. Paying more in fleet commonality costs then needed.

Also, by looking at your fleet, 1 aircraft stands as decent. The ATR-72. But, your Il-62MK is not a great aircraft for its size, range and payload. If you compare the aircraft vs a DC-8-62, you can see that the DC-8 burns 2,000 k/g less in fuel. Requires 2 less pilots at the cost of 1 more F/A crew. Has more range and carries slightly less pax. Not bad for an aircraft almost 10 years younger.

If you compare the Il-62Mk vs modern aircraft of same range and mission... it starts to get ugly real fast.

So with this, we can conclude that the Il-62MK was not a good choice for starter aircraft. It burns too much fuel per pax carried. Which is why you complained about paying alot for fuel.


That fact alone is why your company is not turning a profit. Whatever profit your ATR is making is gobbled up by the IL-62MK.

Routes: Well, you mentioned flying to Cuba... I dont see the route as of 5 mins ago.. So I cant commit on that.

I do see that you've deployed the 62mk to BCN. A heavy competition route. As a new company flying into heavy competition routes with a poor profit making aircraft.. its not hard to figure out why your losing money on that route. The economics of the 62MK make just about any route unprofitable though..

As for your ATR routes, they dont seem that bad. As a new company in any airport, you should always have the mind set of "ninja flying". Fly routes no one else does. Turn a profit before you start to face your competition.

A common mistake new players make is thinking they can start flying the big routes with heavy competition and make money. The ATL-ORD.. LHR-AMS types. Wrong! It doesnt work that way. There are important factors that determine how much pax and more so, money, you make from a given route. Two factors that new companies lack in the beginning are: Route Image and Company Image.

Route Image determines how many pax you are "allowed" to have on a given route. The higher the number, the more pax you are able to move. Generally, RI takes 6 game months to get to 100 or max RI.

Company Image determines how many pax you move and at what price. System wide. The higher the Image, the more pax you can steal from other airlines and have them pay a higher price. CI growth rate depends on how much advertising you spend per week. In some cases, you could spend as much as 30% of your total weekly income to get to "100" CI or Max CI. Though, most airlines cant afford this.. it all depends on how much you spend.


With all this said:

Quote
So what can I do.


Seeing as your already in the red with little chance of getting out, I would bankrupt and restart.

I would find a "mid-size" or smaller type of airport. Mostly free of competition.. or at least.. not used as a hub for another airline. After selecting such airport, I would look at all my routes. Domestic/short haul international types. I would then figure out what type of aircraft is best suited for the routes flying out of my hub.

Are there alot of big 500+ daily pax routes, are there alot of short (500nm) routes? I would do this because one of the most important decisions to be made next is: Aircraft choice.

For your starter aircraft, it should meet the following: Have enough range and payload to cover the majority of your routes. It should be available in numbers enough for you to expand for at least 6mths - 1 year. It should be economical! Flying a 60s era aircraft in the year 2000 is not.. economical  ;)

Once I find such an aircraft, I would then slow start to grow with that fleet type. Starting routes free of competition until my CI is high enough (60+) to start bothering the bigger airlines. After I have months of profits and strong growth, I would then look into replacing my starter fleet and look into getting a 2nd fleet type to start routes that otherwise I would be unable to fly with my starter aircraft. (Longhaul, for example).


By then, you can pick up tips and hints from the forums and other players on how to grow bigger and bigger.


Thats what I would do.


I hope this helps. Good luck and once again, Welcome to AWS!



Talentz (who is now very tired from typing this long story like post...  :-[)

Offline Maarten Otto

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Re: How do I get my company healthy?
« Reply #4 on: May 29, 2009, 08:36:47 AM »
Wow... thanks.. it realy good that you gave me that amount of info. In fact... I closed down the Cuba line and started to fly to Barcelona. And the line is not a big profit making machine... but it doe have some profit. As for the smaller aircraft... I wached the potentiol of flying it to London City Airport and it worked out. The same as flying to Norwcich and Humberside. The line to Maastricht makes a little profit... and even if it's only 2K... it is profit... and thus good to operate, as It's a flight I wouldn't even concider... couse the train is faster. ;D

Kontio

  • Former member
Re: How do I get my company healthy?
« Reply #5 on: May 29, 2009, 08:51:59 AM »
but it doe have some profit.

The weekly profit shown in "My Aircraft" isn't the whole truth. You have to deduct the fleet commonality costs for the fleet type in "Fleet commonality" from the total weekly profit of that fleet type.

Offline Maarten Otto

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Re: How do I get my company healthy?
« Reply #6 on: May 29, 2009, 10:30:50 AM »
I decided to throw in the towel. I now started another CityLinQ from Rotterdam to the UK.

 

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