[W8] - HELP !!! - FINANCE EXPLANATION PLEASE

[bl4ckblue]

Ailrine: Internazional - World: 8

Dear All,

I have a quick question regarding finance.
I keep on loosing money but its kind of hard to explain.

My ticket revenue is: €376,853,280 and its daily.
Misc. revenue is: € €5,715,504 and that’s daily too.

Total: 382,568,784 (DAILY)

My expenses are:

Fuel Expense (Daily)                        €28,637,976
Staff Expense (Daily)                       €17,883,504
Misc. Expense (Daily)                       €49,258,536

Making a total of: €95,780,016 expenses (Daily)

Gate Rental Fees (Monthly)              €37,162,500
Maintenance Fees (Monthly)             €371,700,006

But these are Monthly.
My daily finance should be + 286,788,768 so these monthly expenses shouldn’t influence me too much.
Instead, I am currently loosing 116,000,000 every month.

Can someone explain me why?

Thank you

[Chavaquiah]

I think the values you're looking at (probably on the finance screen, right?) are totals for the month. That "daily" is just an indication of when the cash flow is generated.

For instance, if you daily ticket revenue is €15,702,220, on the finance screen you'll see €376,853,280 (that's daily x 24) for the month.

You can (and should) click on the "Operations department" link to actually get a daily break-down of each item.

[pseudoswede]

Ailrine: Internazional - World: 8

Dear All,

I have a quick question regarding finance.
I keep on loosing money but its kind of hard to explain.

My ticket revenue is: €376,853,280 and its daily.
Misc. revenue is: € €5,715,504 and that’s daily too.

Total: 382,568,784 (DAILY)

My expenses are:

Fuel Expense (Daily)                        €28,637,976
Staff Expense (Daily)                       €17,883,504
Misc. Expense (Daily)                       €49,258,536

Making a total of: €95,780,016 expenses (Daily)

Gate Rental Fees (Monthly)              €37,162,500
Maintenance Fees (Monthly)             €371,700,006

But these are Monthly.
My daily finance should be + 286,788,768 so these monthly expenses shouldn’t influence me too much.
Instead, I am currently loosing 116,000,000 every month.

Can someone explain me why?

Thank you

You are on the right track, except you forgot about the stuff in bold.

382M revenue - 95M in total daily expenses - 400M monthly expenses = 116M loss

But also note that this only occurs at the month change. It appears that your DOP is sufficient to recover from that loss, so I wouldn't worry about it too much. When your airline gets big enough, it's almost impossible not to be in the red at the beginning of the month (on the financial statement).

[Tiger In Training]

You have less money on the 1st than you did on the 24th, but come the 2nd you have more. Don't worry.

[bl4ckblue]

Thanks for your replies.

Note: My balance keeps on dropping!!! 

[DAK]

Your maintenance bill is killing you. You don't earn enough to pay for it

[pseudoswede]

If the Profit/Loss number under the "Projected Totals (For End of Month)" is red, then you are in trouble. If it appears to be a decent number in the black, then I wouldn't worry about it.

If you are incurring a ~116M loss at the beginning of the month, and assuming your DOP is ~16M (382M/24), that just means it'll take 8 game days for you to be back in the black fiscally. Again, nothing to worry about.

[dktc]

Those are simply monthly projection for your airline. Note the "Projected Totals (For End of Month)" header. The "daily" and "monthly" simply indicate the time of the cash flow, not the nature of the particular number on the projection.

At the moment, you have a monthly loss of €-122,522,765, with a Daily operating profit (DOP) of €12,003,625, which is revenue less operation costs. The monthly fixed costs are not included in the DOP.

[bl4ckblue]

My projected totals for the month is in red and I honestly see no way out of it.
Do you think I might need to sell some of my aircrafts?
Maintenance fees are killing me indeed!

Any advise?

I am some 400M down at the moment.

Thnx

[pseudoswede]

Sell your oldest, most expensive planes first.

[DAK]

As I said your Mx is killing you, sell them and replace them all. If you have any unused sell them now or even scrap them, just to lower your Mx bill