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Route profit vs. gate costs

pseudoswede

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on: June 17, 2009, 08:31:33 pm
Here is a break-down on how much profit you have to make on a flight to cover the cost of renting a gate at another airport.

Assumptions
* Only 0.5 or 1-frequency flights
* The other 9 slots for that particular hub's gate are being utilized
* This does not take into consideration profits from food/beverage nor maintenance/staff costs.

You should also remember these costs drop even more when flying from multiple hubs.

FROM = Your base/hub/focus city (gate rental cost)
TO = Destination airport that is not another one of your bases/hubs/focus cities (gate rental cost)
B/E DOC = Daily profit your flight needs to make to cover gate costs.

Code: [Select]
FROM            TO              B/E DOC
----------------------------------------
€ 50,000 € 50,000 € 2,292
        € 100,000 € 4,375
        € 150,000 € 6,458
        € 200,000 € 8,542
        € 250,000 € 10,625
        € 300,000 € 12,708
        € 350,000 € 14,792

€ 100,000 € 50,000 € 2,500
        € 100,000 € 4,583
        € 150,000 € 6,667
        € 200,000 € 8,750
        € 250,000 € 10,833
        € 300,000 € 12,917
        € 350,000 € 15,000

€ 150,000 € 50,000 € 2,708
        € 100,000 € 4,792
        € 150,000 € 6,875
        € 200,000 € 8,958
        € 250,000 € 11,042
        € 300,000 € 13,125
        € 350,000 € 15,208

€ 200,000 € 50,000 € 2,917
        € 100,000 € 5,000
        € 150,000 € 7,083
        € 200,000 € 9,167
        € 250,000 € 11,250
        € 300,000 € 13,333
        € 350,000 € 15,417

€ 250,000 € 50,000 € 3,125
        € 100,000 € 5,208
        € 150,000 € 7,292
        € 200,000 € 9,375
        € 250,000 € 11,458
        € 300,000 € 13,542
        € 350,000 € 15,625

€ 300,000 € 50,000 € 3,333
        € 100,000 € 5,417
        € 150,000 € 7,500
        € 200,000 € 9,583
        € 250,000 € 11,667
        € 300,000 € 13,750
        € 350,000 € 15,833

€ 350,000 € 50,000 € 3,542
        € 100,000 € 5,625
        € 150,000 € 7,708
        € 200,000 € 9,792
        € 250,000 € 11,875
        € 300,000 € 13,958
        € 350,000 € 16,042

Hope this helps.
« Last Edit: June 18, 2009, 03:20:55 pm by pseudoswede »
             
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StephenM

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Reply #1 on: June 18, 2009, 02:01:49 am
Great post! Thanks for putting it together.
Stephen Murphy
Airline Mogul Chief Developer


 

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