Print Page - Lowered Incomes As A Result of Switching Airplanes
Airline Mogul Forum
Airline Mogul => Game Strategy => Topic started by: standingcold on October 23, 2009, 12:42:42 am
Title: Lowered Incomes As A Result of Switching Airplanes
Post by: standingcold on October 23, 2009, 12:42:42 am
Airline ID: 29813 World ID: 799 Current world year: 2005 Current bases: SKBO El Dorado, SKRG José María Córdova International, SEQU Mariscal Sucre International, SVMI Simón Bolívar International DOC: € 14,111,270 Airline link: http://airlinemogul.com/airlinemogul/view_airline.php?id=29813
When I decide that a plane is too old to use, I will often switch it with a plane of the exact same model that I had bought from the manufacturer. When that happens, the optimal price seems to change if the route being flown is being carried solely by my airline. For example:
Old flight (Dash-8-400)
El Dorado to Miguel Urdaneta Fernández Freq Load Ticket Price Profit 1 100% €225 €30,489
If I use the same ticket price when I replace it with the exact same plane (just brand new), then this is what happens:
Proposed Fare: €225 Total Profit/Loss €29,900 Loadfactor 98.53%
My prices have been dropping constantly because of this. There has never been any competition on many of these routes, but ticket prices are forced to fall anywhere between €2-10 every time I change the plane to the same type of plane.
Can any veteran of this game enlighten me as to why this is? Thanks!
Title: Re: Lowered Incomes As A Result of Switching Airplanes
Post by: pseudoswede on October 23, 2009, 01:28:03 am
What is your profit when you have 100% load factor?
Title: Re: Lowered Incomes As A Result of Switching Airplanes
Post by: standingcold on October 23, 2009, 03:43:31 am
€30,094 (it used to be €30,489, and before that, I would expect it would have been about €31,000)
Note that I rarely bother with cents, as I find that a waste of time for a gain of €50 or so.
This is just one among many instances. Actually, I also noticed that one or two of my routes had their optimal ticket price go up by a few Euros. That happens about 5% of the time, whereas the decreased price and profit is the norm. All of the routes I'm referring to are ones with no competition.
Title: Re: Lowered Incomes As A Result of Switching Airplanes
Post by: wishfulanthony on October 25, 2009, 09:37:40 pm
I'd say that's normal... I swap aircraft on many of my routes (usually from smaller to bigger) to make sure that they keep up with demand, and usually, on routes with no competition, you might notice that you can raise the prices (up to the point when 1 to 5 euros' difference lowers the passenger load by around 1 to 2%) so that you can keep up with equilibrium (cf. Law of Supply and Demand).
On your example on having the same plane, but having a lower profit, I believe that the older planes could have a higher price threshold to keep up for maintenance; for a new plane, it tends to perform faster (note: something that's brand new tend to work better), thus it requires you to lower your price to keep up with low maintenance costs in the beginning.
Title: Re: Lowered Incomes As A Result of Switching Airplanes
Post by: BINDU on October 31, 2009, 02:57:20 pm