Airline Mogul Forum
Airline Mogul => General Chat => Topic started by: sansterre on March 19, 2008, 07:21:01 pm
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Maybe I missed something, but how is everyone making money on 1 freq routes? The gate renting fee is absolutely brutal to me; I need several flights just to break even. What are other people doing that I'm not aware of? (It could be that my smallish hub, Louisville, is not big enough to support this kind of traffic, but it seems like even starting in O'Hare; one route that yields 300k in profits at one flight per...) Meh. Anyone who can offer advice would be much appreciated.
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Divide the gate rent into 24 chunks?
Gate rent is listed as monthly rate. Flight profit are listed as daily operating profit (DOP). 1 month = 24 days.
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To break down an example here: let's say you fly to a city that costs you 250k, which typically is a decent-sized market with a ballpark figure of 20-25 million pax. You launch one flight to this city which yields a profit of 50k per day on that route. As stated above, the 250k Euros is the monthly cost. You can also multiply 50k by 24 to see what this looks like at the end of each month. 50k per day totals to 1.2 million per month, which is an overall profit of 950k. :-)
As has been argued several times on here, 1x flights do yield more profits than 2-plus flights, and they allow you to fly to more and more cities. When I first started, my BAE-146 made over 700k flying to about 7 or 8 different markets.
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Add an example for you, sansterre. You have a route from Atlanta to Houston Hobby. he Atlanta cost 350,000 and Houston Hobby cost 150,000. So when you fly it wiyh a fre. of 1, you are likely to make 50,000. Since 50,000 is a DOP, Your monthly should times the Dop by 24 than minus the gate rental fee, so the result is : (50000x24)-350000-150,000=700,000 for this route