Any tips to cut fuel costs?

[fauzi]

Hey guys. I've not been very lucky with my airline, been running at a constant loss ever since I started up a week ago. Any of you know any tips to cut fuel costs? Apart from getting a better plane, I'm not sure of any other methods. The other cost-cutting measures I know is to cut down on marketing and salaries, but I need an image booster right now. Any ideas?

fyi, I'm flying a 19yr old B752 and a 20 yr old B733, both in >90% condition. and my ave. LF are 52.5% for Y and 25.8% for C.

[Kontio]

I don't think there is a way to save on fuel other than choosing aircraft with low consumption. You problem is not fuel cost, however, but fleet commonality costs from operating two aircraft in two different fleet groups.

[mikk_13]

1. Buy the same acft for a while, and get them new and cheap as possible. Good option- 737-400,
2. Fly a route daily
3. Fly routes that have enough demand. eg, lots more than you aircraft.
4. be patient.
5. Stay away from competition, do not fly routes someone else is flying, you will get smashed.
Btw i would have thought if you started a week ago you would be paying a lease by now. Therefore you have been playing for less than three days.

[knutm1980]

He might have bought them cheap or changed aircraft possibly..

As you have only about half filled planes, you will be burning more fuel on long routes versus short routes.

Do your planes have much downtime? Do they fly to several destinations or are you focusing on as few routes as possible? Easier to get your RI up that way.

Fleet communaltiy is a big issue. I started loosing money when I had abotu 40 a/c or so, but I had diversified to 5 or 6 types by then..so it's a problem even then. Try to get the same a/c until you get at least 5/10 planes to cover the related cost to it.

[Maarten Otto]

The best way to cut the costs is to ground your airplanes. Chears. 

[Kontio]

The best way to cut the costs is to ground your airplanes. Chears. 

"The only winning move is not to play."

[Talentz]

Efficiently route your aircraft...?




Talentz

[Curse]

Like others said, but in normal words: The problem is not the fuel or the fleet commonality, it's the LF of ~40%. Get it over 70% and you'll make profit.

[knutm1980]

Like others said, but in normal words: The problem is not the fuel or the fleet commonality, it's the LF of ~40%. Get it over 70% and you'll make profit.

You don't need that sort of LF unless you have dropped your ticket prices to rock bottom fairs.

Check your ticket prices, reset them and see how they are, drop 5 to 10% and hope your LF goes up.

[lilius]

Like others said, but in normal words: The problem is not the fuel or the fleet commonality, it's the LF of ~40%. Get it over 70% and you'll make profit.

He is running two planes and two fleet classes. If that is not a commonality problem...

Obvioulsly a LF of 40% is bad but it is just a question of time before his LF goes up thanks to Company Image and Route Images. Commonality cost on the other hand will never go down.

I never lower any ticketprices unless I have heavy competition on a route. Its not necessary.

[schro]

Fuel is high in MT1.

Your main problem is revenue. You should aim to make 4x+ your fuel cost for each flight you're doing.

Also, flying short segments reduces fuel as a proportion of expenses... not the best strategy for 752s, but great for 733's.

[fauzi]

Well guys, I was simply running into deeper red figures. So I went bankrupt, and started all over at a different base. Now my revenues are about $400k more, profit is about $100-200k, and running 3 planes of the same type really helps. So I guess the best way to recover if you're out of options, is to start again!