Low Cost Airline Strategy

Started by FlyMe!, February 18, 2024, 01:42:44 AM

FlyMe!

Does anyone have a good strategy for a low cost airline?

I fly out of SFO with 737-600 and 737-700 to LAX LAS SEA SLC DEN SEA PHX PDX BUR. I have a total of seven planes, all leased.

Unfortunately, I am not generating a profit. What should I do?

knobbygb

More information needed, such as a screenshot of your scheduling.  My first instinct is that you're not fully utilising your fleet. 9 destinations with 7 aircraft. You could be flying multiple daily flights of course, but one flight to each could be covered with just 3 aircraft. Leases are expensive and you have to keep each one in the air as much as possible - including overnight if you can. Smaller 737s aren't the best profit-wise, especially the 600 but also the 700 too. There's a reason why the 600 wasn't a success in the real world and  you could argue the same for the 700 as it wasn't carried-on into the Max era.  Of course, there could be many other reasons for your non-profit. Have you waited long enough for the routes to mature?  This game does require some patience. And learning from mistakes.

FlyMe!

Each of my planes fly 3 routes (including return) per day, with the exception of SFO-DEN, with 2 per day. I can't figure out a way to attach a screenshot.

Update: I'm making 1 771 910 USD currently.

knobbygb

Use "Click or drag files here to attach them" at the bottom of where you post (after clicking "Reply" - don't use "Quick Reply").  That way you can attach screenshots.  If you would like me to mentor your airline, request a mentor via "Game Mentors" in the "Dashboard" menu and I will pick up the request later today. Then I'd be able to see your airline fully.


QuoteEach of my planes fly 3 routes (including return) per day, with the exception of SFO-DEN, with 2 per day
SFO-DEN is around 7hr40 roundtrip (including the extra turnaround time at the end before the next trip). If you're just flying that twice on an aircraft, that means there is more than NINE HOURS wasted there! The a/c is spending nearly 40% of the day on the ground. In that time you are still paying the lease, maintenance and crew costs.  You need to fly a longer overnight 'redeye' and then fit in the other flights around that.

For each one, pick a flight around 1200 to 1500nm. From SFO that should also put you into the -6 or even -5 timezone which means you can depart late at night and arrive at destination early morning and back at SFO mid morning. Then you have maybe 12 to 14 hours to fill with two other flights. That's the only way you will make a profit early in the game with leased aircraft. Aim for 100% utilisation.

gazzz0x2z

for gameplay reasons, low prices are not as efficient in the game as in reality (to avoid established big companies to easily kill off newcomers). So the very concept of low-cost company in this came is risky.

lumberguy5

Should be said that just because a ULCC or LCC has low sticker fares, it doesnt mean the revenue per pax is that much lower. All those addons for seat selection, snacks, drinks, wifi, bags, etc does add up. Kind of like how Cedar Fair/Six Flags (a Major NA themepark group) reports that most guests are passholders (getting in for $99/year), but the average spend per visit is still $50-60.

Really you should look at fare as an average "package price" that a modern airline would pass over to the fun people in Revenue Management.

Obi-Gunsmokenobi

Quote from: FlyMe! on February 18, 2024, 01:42:44 AMDoes anyone have a good strategy for a low cost airline?

I fly out of SFO with 737-600 and 737-700 to LAX LAS SEA SLC DEN SEA PHX PDX BUR. I have a total of seven planes, all leased.

Unfortunately, I am not generating a profit. What should I do?

Trying a Southwest Airlines model?  If so, they began with shorter legs than legacy lines, higher frequencies, shorter turn times, and tried to squeeze as many cycles per plane per day into their frames...the rest is history. :)  Just hope there's sufficient demand or vulnerable competitors.  Need patience, too.