Messages

1

General Chat / Concerning €1 Routes

« on: June 13, 2008, 04:03:45 am »

There should be no question of banning $1 fares.

first u need to have enough muscles to carry $1 fares in perpetuity.
Second most important thing is AM regulation stop us from opening more than 7 hubs. That clearly limits
large airlines from flooding....

This policy is ensuring larger airlines are not playing irrational game and even if they do only small market is affected.
My experience is 5-8 years into game its not worth competing on heavy routes. In fact once I became multi bilion airline
I found leasing out aircrafts was much more profitable strategy than compete and maintain routes.

2

General Chat / Lease or Buy

« on: June 13, 2008, 03:52:57 am »

I quickly built my airline from scratch in w3 by leasig usually aircrafts under about 50 million value.
that was quickest way to expand. However once i reached higher DOP's i could easily buy more planes...

however as u have more planes maintaining ur routes becomes difficult and competition will bring down
ur loadfactors from 100 to 80%. In that case if u have heavily leased fleet u have
to keep tab on ur finances. else u will have no idea when u r loosing money on an aircraft.

Just the fact:

I am making $200 million a day on revenue excess of $500 million with heavily leased fleet.
another wrld I am making $100 million a day on $140 million revenue on all owned fleet.