Can it be saved? Or Bankrupt?

[Matei94]

Greetings all,

I guess this is the reason there is a Beginners world for starters.

I believe I understand where I went wrong, after remembering that there is such a thing as a Forum, and have gone through some remarkable (dare I say, eye-opening) posts by Gazzz. However, the knowledge transfer is only as good as it is via Forum, thus, I am asking whether any trained eye can gaze on my beautiful disaster and attest whether it is salvageable.

I think my errors were:

1. Fleet commonality - too many different airframes
2. Rushed to open too many bases (4/4) with 20 aircraft in each of them

What I have done (unsure whether it will work):

1. Stored the [only] two Boeing aircraft in my fleet, which I own, and cut the $3M pm maintenance expense
2. Shut down some unprofitable domestic (SYD-MEL) routes on the A350
3. Stored all A380s (another nice mistake), which in maintenance alone cost $7M pm + staff

My CI is >70, but I have seen a massive decrease in pax buying tickets - another mistake was jamming too much onto each aircraft, which inevitably caused delays and cancellations (OTP 85%)

I am currently at NEGATIVE -87.9M

[Sami]

Nearly 30% to lease costs seems to be really high, take a look into those.

[gazzz0x2z]

it's normal to see a decrease in pax if you stored a few planes. This is not alarming in your specific context.

Sami is right, your leases are excessive. Likely you did lease recent aircraft. One of the old sayings is "lease ol, purchase new". It's less true in the 50/60s, but in the A380 era, you should only lease old timers.

Whether it's salvageable depends on lease length. Deactivate automated lease renewal, and get rid off planes that are no more useful. If you took 5 years long leases, though, I fear you're doomed. If you took 1 year leases, then it might be still time to do something. And especially as your CI is good, you can try to increase prices and see the effect on your bottom line. I would reset prices, then add +5%, or maybe +10%, if opposition is mild.