Airline Mogul Forum

Concerning €1 Routes

nwadeltaboy

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on: January 11, 2008, 12:09:10 pm
OK, so you've complained and whined about them.  There may be wars going on and little airlines might be losing out.  But the admins haven't done anything about it, and they never will, so just play the way it's meant to be played.

Sticky this topic, Stephen? :D


blue25

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Reply #1 on: January 11, 2008, 12:10:38 pm
I'm with you on this :wink:
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dktc

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Reply #2 on: January 11, 2008, 12:16:00 pm
Just a point of clarification. There is basically nothing we could do with the $1 fare. If we implement a minimum fare, people will be dumping using the minimum fare, while others will complain and whine about them. Regardless of the minimum fare we set (as in the current one, 0, or some proposed ones, 100, 500... etc.), there will be people putting huge capacity at that rate. Thus, from an administrative stand point, it would be totally useless for us to add in a minimum fare, unless we are talking about a system like another sim which is good to run multiple frequecies of the same route without affecting your load :roll: .

:arrow: Look on the bright side; at least no one is making money with $1 fare.
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SJR

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Reply #3 on: January 11, 2008, 01:02:07 pm
I have no problems with 1 euro fares. Ryanair has been know to use them and i am sure other airlines have done as well.
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StephenM

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Reply #4 on: January 11, 2008, 01:25:48 pm
Ryanair wiped the floor with Easyjet when they tried to enter the Irish market. Then dropped the routes after when Easyjet pulled out. Despite some being profitable.  :roll:
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Jps

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Reply #5 on: January 11, 2008, 01:47:39 pm
Im making money with $1 dktc  :lol:

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iranair777

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Reply #6 on: January 11, 2008, 01:52:53 pm
Quote from: "Jps"
Im making money with $1 dktc  :lol:


:lol: I did as well (only about 600 euros) but now i've gone back up with the price

and for the first time ever one fo my suggestions have been stickied :lol:


LOT 737-300

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Reply #7 on: January 11, 2008, 01:59:41 pm
You may be making REVENUE with those routes, but in the longer run, you wouldn't be making a PROFIT after all of the costs have been factored in for that month. I myself usually aim at the 3.5K Euro mark when I fly to cities that are the same size of my current base. So far, it's a stragety that works decently well for me.


dktc

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Reply #8 on: January 11, 2008, 02:01:01 pm
You have to take into consideration the rent / upkeep for the slots that flight takes.
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iranair777

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Reply #9 on: January 11, 2008, 03:36:30 pm
Quote from: "dktc"
You have to take into consideration the rent / upkeep for the slots that flight takes.


Doh! I never thought of that even though I've been thinking about how to manage my finance properly recently :lol:


pocketbookbrando

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Reply #10 on: January 12, 2008, 12:12:31 am
First, THANK YOU to the admins for giving us somewhere to talk about this.  Every time I've tried to give comments on this, the thread has been shut down already.

In terms of the topic itself, why are people complaining about this.  The number of routes with $1 fares are tiny compared to the number of routes around.  Some people make these routes just to join their hubs.  I've heard that the small airlines are whining about this but I have a question for them....

Why are you insisting on opening a route on an extremely competitive route frequented by planes worth more than your company?  This to me seems akin to every software company on the planet deciding that they need to make an OS or MS Office clone and compete with Microsoft.  If you're a small airline, find some niche routes out of less frequented hubs.  You're not going to be successful if you use gates in London Heathrow and expect to make money on routes between it and Munich, Paris, Rome, Berlin, Stockholm, etc.  It's a stupid strategy.  I look at these $1 routes and see plenty of small companies wasting planes flying them and then complaining about it.  They should be complaining about their own lack of skill in the game.

For the players with plenty of money, I doubt highly that the $1 routes matter much as there aren't that many of them.  There is obviously a downward trend on fares throughout the game as the number of planes and airlines increase.  It's the nature of the beast and quite frankly anyone who has flown on a commercial airline has benefited from this.  That said, the more experienced/smarter (have to throw that in cause I'm new at the game, but have a multi-billion company) players won't drop every fare to $1 or by $1.  They will lower it to match the lowest fare and when we bring in lower fares, it is because we have larger planes and need to fill them.  

Should we have minimum priced routes?  No.  Is it ok that there are $1 routes?  Sure.  Should people complain about it?  Hell no.  IF you own a business and can't compete in a certain market, then you don't sell in that market.


StephenM

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Reply #11 on: January 12, 2008, 12:15:17 am
I think a free book on Economics should be given to the person who complains the most. Show them that no matter what you do the market will always find its equilibrium price. And if that requires to be at a base level, it will flatten out at that base level. (ie a €1,000 lowest fare will still be abused)
Stephen Murphy
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Daniel Doorgakant

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Reply #12 on: January 12, 2008, 04:22:45 pm
I've been to Ireland and Back for a total of 0.02GBP. Yes, 2 Pennies including Taxes, so get over it.

€1 flights are allowed and will always be allowed.
Daniel Doorgakant
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Bobandirus

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Reply #13 on: January 12, 2008, 05:04:26 pm
Quote from: "Daniel Doorgakant"
I've been to Ireland and Back for a total of 0.02GBP. Yes, 2 Pennies including Taxes, so get over it.



How on earth? Lemmi guess, Ryianair?


Hampo

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Reply #14 on: January 12, 2008, 05:11:14 pm
Me too Daniel...

Me, Brother and Mum went Manchester - Dublin - Manchester, for a grand total of 6p for everyone all 3 of us... The bus just for me from Dublin Airport to the city was about £12!

Get over it :D


 

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