Airline Mogul Forum

Airline Mogul => General Chat => Topic started by: overworked on August 12, 2009, 07:45:27 am

Title: Route Set-up Expenses
Post by: overworked on August 12, 2009, 07:45:27 am

My questions is regarding the expense on the route set-up page.  When I set-up my route, the expense cost fluctuates with the price of the the tickets.  I know that if I had a load factor say 80% my expense would be lower because I would require less meal and less fuel since the plane would be lighter.  However, when you first going to the page, the ticket price is set at €1 so the load factor would be 100%. So when adjusting the ticket price to max with 100 % LF.  Should the expense not stay the same since there are seat-class differences.  There no more extra meals or fuel that would increase cost.  Can someone explain why there would be differences in expenses?  Sorry, no images, but here are a few examples.  I created a route from Rome (Leonardo De Vinci) to Leknes Airport using a A300-B2-100.  Here's what I get using the following ticket prices. €1, 75, €125, €200, as seen blelow.  I realize the difference in the amount of money isn't a significant sum, but any extra money helps.  Just like an explanation why this happens.  Thaks

Ticket Price: €1 Revenue: €4,271 Expense: €29,832 Profit/Loss: € -25,561 LF: 100$ Ticket Price: €75 Revenue: €53,999 Expense: €31,572 Profit/Loss: €22,427 LF: 100% Ticket Price: €125 Revenue: €87,599 Expense: €32,748 Profit/Loss: €54,851 LF: 100% (Close to max) Ticket Price: €200 Revenue: €57,972 Expense: €29,080 Profit/Loss: €28,891 LF: 42.01%

Title: Re: Route Set-up Expenses
Post by: Tiger In Training on August 12, 2009, 04:53:41 pm

I would say, the higher your prices, the more marketing and advertising you need to sell ALL of them. Not to mention commissions paid out to staff and companies such as the airport.

Title: Re: Route Set-up Expenses
Post by: StephenM on August 12, 2009, 06:03:18 pm

Will should have an idea why this is so, off the top of my head I cannot think of a particular reason for it. From some of the changes I made previously I know that the loadfactor will affect the costs, but since it is consistently at 100% its a bit harder to figure out!