AirwaySim

General forums => General forum => Topic started by: MattDell on October 05, 2010, 03:14:55 AM

Title: Are new bases worth the overhead?
Post by: MattDell on October 05, 2010, 03:14:55 AM
From my experience... bases are expensive to start, and don't really do much to increase profits.

Am I doing it wrong, or have other people had better success?  For what it's worth, I'm one of the (if not the) most profitable airlines in my current game world and only run one base.

-Matt
Title: Re: Are new bases worth the overhead?
Post by: Sigma on October 05, 2010, 03:49:27 AM
They increase passenger counts, but they won't do anything to increase margins, unless you're moving into a particularly large base (larger than where you started) with a particularly profitable untapped market.
Title: Re: Are new bases worth the overhead?
Post by: JumboShrimp on October 05, 2010, 05:22:38 AM
It is extremely unlikely (maybe there is a rare exception) that you would make more money with the extra base.  Extra base is only for your entertainment, not for profit.

Let me give you an example of my aborted attempt at opening a new base.  My airline is reasonably well run, and in top 10 in many categories, despite starting at 33% mark of the game.  My weekly profit fluctuates between $30 and $80 mil, average is probably $50 million (excluding aircraft purchases).  That is with 400 aircraft flying (2 bases).  So the average is about $125,000 per aircraft (real per aircraft profit, not the fake one you see on a/c detail screen screen).

Opening a new base, without placing any aircraft there would have cost me $20 mil in staff overhead.  How many a/c would I have to have at the new base (at the same profitability) to break even?  $20,000,000 / $125,000 = 160.  So if I were to add 160 planes (with all the costs it involves), all I would do is break even.  But wait: you can only have 70 aircraft at the new base....

So with the current staff overhead calculation, it is impossible for my airline (in ATB) to open a new base and break even on the venture.  Forget profits....
Title: Re: Are new bases worth the overhead?
Post by: Jona L. on October 06, 2010, 07:54:59 PM
Well, it is always up to the bases!

I have the use of bases, that I have 2 airports with no curfew, and 3 airports with at last some slots available, because LHR (London Heathrow) has a) no slots between 23 and 6 at all and b) none elsewhere due to high usage...
so with LGW and MUC I have curfew-free bases, and LGW, MUC, and DUS all provide me some more slots.... so I can run more planes, and I make money round the clock, so actually they can provide HUGE benefits!

what I dislike (yet) is the limitation, I hope for there being no limit about number of bases, and aircraft at these bases in later versions. 70 a/c and 3 bases is just a f#cking load of cr#p size...


Jona L.
Title: Re: Are new bases worth the overhead?
Post by: DenisG on October 07, 2010, 08:06:03 PM
Hi Jona!

I am back again on board.

By the way, yes, I share your thoughts on operational grade, especially since I know how well and tight you are able to schedule, but do you think that you can even then make up the huge basic costs? Rather, in your case, it would be reducing the not generated revenues by not being able to fly out of LHR, right?

Just some thoughts.
Denis
Title: Re: Are new bases worth the overhead?
Post by: Jona L. on October 07, 2010, 08:30:28 PM
Quite yes.... well, I make a lot of money from letting my birds fly from more spaces, so it is not only reducing the operational undermaximizing of profits, but also giving me the possibility to maximize profits in more than one airport, while having all my planes in the air :)

Jona L.
Title: Re: Are new bases worth the overhead?
Post by: DenisG on October 08, 2010, 02:00:45 PM
By the way, what I still noticed: 150k real profit per plane per month is pretty tight! I took a look at some former scenarios and had much higher numbers even late in the game.

Denis
Title: Re: Are new bases worth the overhead?
Post by: JumboShrimp on October 08, 2010, 02:26:24 PM
Quote from: DenisG on October 08, 2010, 02:00:45 PM
By the way, what I still noticed: 150k real profit per plane per month is pretty tight! I took a look at some former scenarios and had much higher numbers even late in the game.

Denis

Make sure you are not looking at My Aircraft page, but at your income statement, and average profits per week excluding one time charges such as plane purchases.  Divide that average number by number of planes in your fleet.

Well, yeah, 150k is not great - and it is actually 125k, but that already reflects the overhead cost of the 2nd base.  My average income was higher with HQ only with ~300 planes.  IIRC, $60 mil / 300 planes = 200k.  That incluses a bunch of small planes such as Dash-8 and 737-700.  Also, the 125k reflects fairly challenging fuel prices of ~1250 - and it seems tha the default ticket prices did not exactly compensate for the high fuel prices.
Title: Re: Are new bases worth the overhead?
Post by: DenisG on October 08, 2010, 02:34:42 PM
Hi Jumbo.

Yes, I also derivated from the income statement, not the a/c page. May really be the high fuel prices, but generally, flying a bird worth 50m USD and generating 150k USD per month, gives a meager return of around 3.6% p.a., which is even low in today's real airlines. I just figured it might be worth a note.

Denis
Title: Re: Are new bases worth the overhead?
Post by: JumboShrimp on October 08, 2010, 02:56:47 PM
Quote from: DenisG on October 08, 2010, 02:34:42 PM
Hi Jumbo.

Yes, I also derivated from the income statement, not the a/c page. May really be the high fuel prices, but generally, flying a bird worth 50m USD and generating 150k USD per month, gives a meager return of around 3.6% p.a., which is even low in today's real airlines. I just figured it might be worth a note.

Denis

Yes, I find it quite low as well.  It is my first game, started at about 1/3 into the scenario and made countless mistakes.  But I am doing much worse than the other airlines.  I am in top 10 in many categories, and #12 in company value, which represents accumulated profits over the length of the scenario.

I find some value in being competition-proof at my HQ.  Number of airlines were at my HQ when I started, or started there later, all went under.  I fly many marginal routes, which leaves pretty much no room for competition.  When a new airline starts, I don't have to chase them, I have the trap already set up...
Title: Re: Are new bases worth the overhead?
Post by: DenisG on October 08, 2010, 02:58:49 PM
In which scenario? I would like to take a look.
Denis
Title: Re: Are new bases worth the overhead?
Post by: JumboShrimp on October 08, 2010, 03:00:39 PM
Quote from: DenisG on October 08, 2010, 02:58:49 PM
In which scenario? I would like to take a look.
Denis

ATB - about year and a half game time left.
Title: Re: Are new bases worth the overhead?
Post by: DenisG on October 08, 2010, 03:36:10 PM
Too bad, I am not in that scenario...
Denis
Title: Re: Are new bases worth the overhead?
Post by: Jona L. on October 11, 2010, 09:39:26 PM
Hey, Denis: get to MT#3, that will go to the same years!

2nd: with 4 bases [EGLL/EGKK/EDDL/EDDM], and 550a/c [just about 150a/c in the 100-225PAX class, all others were 250+] I had an average of 220K/week/plane from Income-statement, without cleaning off temporary loans!
so, it ain't that bad!