Airline Mogul Forum

shut down route

kazoom

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on: January 03, 2009, 02:44:24 pm
I wanted to increase my profit by closing down some routes...

I noticed that i was making less than $2000 on certain routes where I pay a gate rental fee of $50,000 so I shut down these routes thinking that I would end up with a greater profit, but to my surprise I didn't.

If my math is good isnt it so that -->

daily route revenue x number of days = monthly revenue

so...

$2000 x 24 = $48,000

$48,000 < $ 50,000

Revenue < Costs = loss
?
img]http://i244.photobucket.com/albums/gg10/kazaamzoom/propersize.gif[/img]


MrOrange

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Reply #1 on: January 03, 2009, 03:10:25 pm
You will increase your profit when closing this route, if you return the gate as well that is. Do note the following though:
1. If you are using multiple slots on the €50.000 gate, your formula doesn't work
2. You won't notice an immediate difference on the finance page, simply because at the start of each month you will already have paid for the gate, so you'll only see the real difference when looking at the finance page next month.


kazoom

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Reply #2 on: January 03, 2009, 03:46:40 pm
You will increase your profit when closing this route, if you return the gate as well that is. Do note the following though:
1. If you are using multiple slots on the €50.000 gate, your formula doesn't work
2. You won't notice an immediate difference on the finance page, simply because at the start of each month you will already have paid for the gate, so you'll only see the real difference when looking at the finance page next month.

Yeah I closed down my routes at the end of the month (on the 24th) and returned my gates, I am not using multiple slots. I think the issue here is that I am based at an airport too small to operate profitably! haha fundamental problem  :lol:

so on the other routes that cost more per month I am also making a loss  :D

owned!  :P

thanks for your help ;)
img]http://i244.photobucket.com/albums/gg10/kazaamzoom/propersize.gif[/img]


 

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