Cutting Costs

dktc · **Reply #15 on:** March 28, 2008, 10:49:16 pm

Quote from: "MrOrange"

Too lazy

Thanks_for_the_upgrade · **Reply #16 on:** March 29, 2008, 12:16:52 am

EDIT: I got distracted four times while trying to write this, hopefully it makes sense, but ask for more clarification if you like.

Nickel and diming is good in the first few days of the game when just about every hour counts and monthly expenses need to be kept under control, but six months in you don't need to be choosing planes based on a few thousand euro profit difference. You can spend all that time pouring through the aircraft list and punching numbers on your little calculator, but as soon as some wanker puts a larger plane on the route, you're stuck with your pants around your ankles and your farts aren't making noise any more.

When it comes to leasing, I ONLY lease in the first six to nine months in order to get the ball rolling. Early on though, lease rates are extremely high due to supply and demand issues so in order to keep it all in check, I only lease planes with rates that I can pay off in four to five game days, keeping the profit on the plane over 75%.

I'm the king of early lease turn ins too. Nine times out of ten, I'll buy a plane, then try to lease the same plane off the open market for a day or so to retain my gates and make a little profit.

Think not only about how you're going to make the most money you can, but think about how you can siphon money away from your competitors too.

Thanks_for_the_upgrade · **Reply #17 on:** March 29, 2008, 07:29:19 am

OH, I know what I left out (damn march madness)...

The most important thing to consider when leasing or buying anything, is how competitive the plane is going to be and/or how long you'll have it until you need to upgrade it. A BBJ is a great plane to use when you're getting your feet wet on TATL flights but under the current game design there is a snowballs chance it will remain competitive on the route more than 18 months in to the game. People are going to be buying larger and larger planes to put on the route, causing a dramatic supply surplus and a lower demand.

So the ROI may be a week for the BBJ, but you have to calculate in it's eventual replacement costs on top of the route research fees - which, for TATL flights can easily be over 120,000 Euro a pop.

AirHanoverInternational · **Reply #18 on:** March 29, 2008, 02:16:11 pm

Quote from: "dktc"

All I could say is that cutting costs in AM through cutting leases is a waste of time.
If you get 12 million monthly DOP on a 5 million leases, for a plane worth 50 million to buy, you get 7 million out of that lease.

Depending on your location your DOP may not reach the mentioned 12M (my best a/c is around 10M). Where I am located the first routes you create are those with the highest profit. After the first year I was not able to create routes for an aircraft to have a DOP >350k (8.4M MOP). Now I am glad with 250k (6M MOP) - some are lower than 200k. Getting rid of leased in aircrafts makes sense - otherwise your competitor gets too much money. :wink:

dktc · **Reply #19 on:** March 29, 2008, 04:35:51 pm

Quote from: "AirHanoverInternational"

Depending on your location your DOP may not reach the mentioned 12M (my best a/c is around 10M). Where I am located the first routes you create are those with the highest profit. After the first year I was not able to create routes for an aircraft to have a DOP >350k (8.4M MOP). Now I am glad with 250k (6M MOP) - some are lower than 200k. Getting rid of leased in aircrafts makes sense - otherwise your competitor gets too much money. :wink:

Of course you have to evaluate how much you get from your routes.

Issues with the "competitor gets too much money" are that...
1. They could always lease the planes back out to another player~
2. If they can't lease the planes out, they use it on routes, giving them even more profit

AirHanoverInternational · **Reply #20 on:** March 29, 2008, 05:44:23 pm

Quote from: "dktc"

Of course you have to evaluate how much you get from your routes.

Issues with the "competitor gets too much money" are that...
1. They could always lease the planes back out to another player~
2. If they can't lease the planes out, they use it on routes, giving them even more profit

1. Quick calculation on this: If I move 8M to player A he gets an advantage of 16M. If player B sends his money to player A I am just 8M behind :wink:
2. But usually they stay a long time on the market (maintenance costs) before they "may" be re-used.

dktc · **Reply #21 on:** March 29, 2008, 06:03:42 pm

Quote from: "AirHanoverInternational"

1. Quick calculation on this: If I move 8M to player A he gets an advantage of 16M. If player B sends his money to player A I am just 8M behind :wink:
2. But usually they stay a long time on the market (maintenance costs) before they "may" be re-used.

1. You forgot the profit you lost on the second case.
2. It depends. It may not take long at all.

AirHanoverInternational · **Reply #22 on:** March 29, 2008, 10:32:42 pm

Quote from: "dktc"

1. You forgot the profit you lost on the second case.
2. It depends. It may not take long at all.

1. You are right.
2. Reminds me a statement from JPS which I will not repeat here

but say it in different words: not every player here is so smart like you :wink:

dktc · **Reply #23 on:** March 29, 2008, 10:41:32 pm

Quote from: "AirHanoverInternational"

2. Reminds me a statement from JPS which I will not repeat here but say it in different words: not every player here is so smart like you :wink:

Generally, anything Jps said about me is bad....

I don't even want to know