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General Chat / Profitability on larger jets
« on: February 05, 2008, 01:32:03 am »
I was wondering if anyone else has issues profiting with large jets. I just did a test and a quick math and it doesn't seem possible to profit from a 747-200 lease, even if you get a 5% rate (around 20 million/month).
I tried to establish one round trip in a route that is 3,996nm long and the profit was something ridiculous like €72k because I had to charge peanuts to get the thing full. The route is a good route with a 1000/2000 demand and no competition.
Then I went with two 0.5 trips, one to this destination and the other even further (5273nm). I don't think it would be possible to fly these two route on a same day but, let's leave that aside for now. The result was a little better but the most the plane will make a day is €181,000. I make more than that in my Page Herald and it costs only 1/80th. With this plane daily profit the maximum revenue is 4.3 million/month and the lease costs 20 million. On this math is better to have 80 Page Herald operating than a single Boeing 747-200.
I believe is partially because, for some reason, even with no competition, I am forced to charge very little to fill up the plane. Did any of you find a way to profit with the larger jets? Is this a known issue that's being worked on and I am unaware of?
I appreciate any comments
I tried to establish one round trip in a route that is 3,996nm long and the profit was something ridiculous like €72k because I had to charge peanuts to get the thing full. The route is a good route with a 1000/2000 demand and no competition.
Then I went with two 0.5 trips, one to this destination and the other even further (5273nm). I don't think it would be possible to fly these two route on a same day but, let's leave that aside for now. The result was a little better but the most the plane will make a day is €181,000. I make more than that in my Page Herald and it costs only 1/80th. With this plane daily profit the maximum revenue is 4.3 million/month and the lease costs 20 million. On this math is better to have 80 Page Herald operating than a single Boeing 747-200.
I believe is partially because, for some reason, even with no competition, I am forced to charge very little to fill up the plane. Did any of you find a way to profit with the larger jets? Is this a known issue that's being worked on and I am unaware of?
I appreciate any comments
