question about profitability...

Started by qunow, April 27, 2017, 12:00:33 AM

qunow

I was leasing some expensive 777-200LR in the long haul challenge mode (more than 2M per month) which I did not expect them to be making huge profits.... but then in the my aircraft page, i saw some of my 777-200LR aircrafts which were flown only 3 routes per weeks with each of their route about about 9000-10000nm long, and they're making profits up to 650k/week... how does that happen? loading factors of all three routes it flown were close to 100% although lower in first class, and my price setting were only slightly higher than the default. Furthermore, the weekly financial estimate is pretty far from the actual result, with the estimate being something like this:
Ticket revenue  1 254 144 USD 
Line maintenance (A+B)  -67 951 USD 
Insurance  -80 729 USD 
Fuel cost  -433 478 USD 
Route fees (1)  -166 711 USD 
Weekly leasing cost  -475 368 USD 
Total estimated  29 907 USD
so how did I gained 650k a week with this aircraft?

Cardinal

#1
I don't know specifics, but the weekly profit listed on the my aircraft page doesn't take in to account everything. I think maintenance and ownership cost (lease, insurance) are not included in that number. It's more of a raw "does this plane bring in more revenue than it burns fuel?" number, and is meant as an apples-to-apples comparison between planes/fleets.

Edit: I was thinking about route profits. The aircraft profit number does include leasing cost.

qunow

Quote from: Cardinal on April 27, 2017, 12:12:30 AM
I don't know specifics, but the weekly profit listed on the my aircraft page doesn't take in to account everything. I think maintenance and ownership cost (lease, insurance) are not included in that number. It's more of a raw "does this plane bring in more revenue than it burns fuel?" number, and is meant as an apples-to-apples comparison between planes/fleets.
But on the my aircraft page i also see an aircraft in C-check say it lost 640k last week, and that is about exactly the number in its weekly financial estimate box, which have no fuel burn and etc., only 120k insurance and 520k leasing cost. If they are not included then shouldnt aircraft in maintenance have that number as 0 ?

Cardinal

Actually I was thinking about route profits (which definitely do not take into account lease payments), not aircraft profits :-[

But my original point stands. That number leaves out some things.

schro

Costs of C/D check and Staff are not included in that weekly estimate number, but still, by those numbers, you're potentially making a profit.

Your fuel costs also indicate that the game world's fuel price is around 500, which is considered super cheap. If you redid the math at 1000-1200 fuel (which is typical for late game worlds when ULH aircraft are available), you'd be in the red on the plane.

Don't forget, that game world mode is listed as "Overall difficulty level: Easy." Generalities that apply to normal game worlds can be disproven when gravity isn't as strong...

qunow

Quote from: schro on April 27, 2017, 01:13:13 AM
Costs of C/D check and Staff are not included in that weekly estimate number, but still, by those numbers, you're potentially making a profit.

Your fuel costs also indicate that the game world's fuel price is around 500, which is considered super cheap. If you redid the math at 1000-1200 fuel (which is typical for late game worlds when ULH aircraft are available), you'd be in the red on the plane.

Don't forget, that game world mode is listed as "Overall difficulty level: Easy." Generalities that apply to normal game worlds can be disproven when gravity isn't as strong...
The fuel cost here is actually around 1000.

gazzz0x2z

my horribly unaccurate rule of a thumb is that a medium aircraft has 100/120 k$ in hidden costs, a large one 250/300, a very large one 500/600. So at 650k$/week with a very large aircraft, you're barely breaking even.

Plenty of parameters are modifying this, especially the exact date(because inflation) and country(because staff costs). Marketing should be included, too, and it's highly changing from player to player. Doing the exact math is extremely difficult, those are just estimates. Just remember that staff costs, training, alliance fees, office rent, marketing, and the commonality part of maintenance(a tough beast to compute), are not counted per plane. You can probably, thanks to this, adjust my numbers to numbers more fitting to your situation.