Hello,
I have a vey profitable route right now... and it's my one and only. Would it be wise to add another plane to fly that route at another time? Would that dillute the high LF's that I currently have? Or would it be better to fly another route?
-Matt
as of now, demand is per day.
You can fly 10 flights at the same time and it doesn't really matter (unless they are between 0500 and 2300).
I dont understand why anyone would keep starting different routes when there is available demand on routes they run already.
With more flights, your RI goes up much faster. And if you take over all the demand, there is little chance that a competitor will try to start on the same route.
As long as you don't exceed demand with your capacity then it's a great choice, as said before it will increase your profit and be a deterrent for the competition
I personally like to go over demand by 10-20% in order to build pretty high barriers of entry for competitors. I use different planes for that, which I add later in the game when turnover is spread wider. Generally, think about what strategy you want to run and make it dependant on a/c availability to implement it or not.
If you gave us more info, we could perhaps give more detailed description to you. I am not active in your scenario, so I cannot see your routes nor your planes nor your competitors.
Denis
There is pro's and con's to this method, of course doubling up will protect your route but whilst doing that you aren't expanding and other airlines might be doubling up on their crucial routes therfore limiting your attack on those routes too. Just have to find the right balance and be quick to react to competitors.
Definitely not a 'one and only'-approach. Since I prefer to fly small planes, I usually tend to be quite competitive when entering saturated routes. E.g. as Paris-Frankfurt is already pretty overloaded, I would enter this one with a Saab2000, since most competitors there are flying 120+ jets. On further routes, I would enter with the small but dandy EMB-145 due to its much lower fuel cost structure. The consequence is that I need to fly several more routes to cover and this only works as long as I can get the planes and the slots. However, I prefer it, because it gives me a pre-tax margin of over 30% once I start purchasing planes.
It was just meant to be a general description to give an idea of what you can do.
Denis