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Profit calculations

Evolve Air

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on: September 23, 2009, 02:34:52 pm
Can somebody please explain profit calculations for different planes to me. Let say an example:

Route Phoenix Sky Harbor - Calgary

Distance 1.227 miles
Phoenix 40M pas
Calgary 12M pas

A319LR 110 seats and A318 126 seats have same max profit 100k/route. A320 with 179 seats has max profit 95k/same route.
I suppose profit is calculated based on fuel consumption, distance, size of airport and ticket pricing. However I find it unlikely that A320 brings less money?

Can somebody enlighten me ;)


dktc

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Reply #1 on: September 23, 2009, 03:52:52 pm
With the increase in quantity supply Qs, the price decreases. You need to price at a lower ticket price in order to fill the extra seats. Decrease in price could lead to a decrease in total revenue. The A320 sure has a higher operating costs than the other two. If the increase in total revenue is not large enough to cover the increase in costs, the profit would decrease.
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Evolve Air

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Reply #2 on: September 23, 2009, 09:02:07 pm
Exactly, TY. However still - isn't it unusual for case above?


tushardhoot1

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Reply #3 on: September 23, 2009, 09:17:21 pm
A 40 M airport to a 12 M airport that can't support 179 seats?

This boggles my mind.


Shawa

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Reply #4 on: September 23, 2009, 09:26:19 pm
any competition?

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pseudoswede

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Reply #5 on: September 24, 2009, 01:39:33 am
Exactly, TY. However still - isn't it unusual for case above?

No, because the A320 is too large for the great majority of routes on the game. Even to "large" airports like YYC. I get a chuckle watching people waste money on A320s from any airport except the 350k's.

To put in real perspective, AC uses an E190 for PHX-YYC.
             
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Evolve Air

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Reply #6 on: September 24, 2009, 12:05:52 pm
I have checked, how is in real life:

US Airways uses CRJ900/A319/A320. Its interesting its using CRJs from Phoenix and A319/320 from Calgary ...
Westjet is using 737-800HGW 3 times per week.


kcclieou

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Reply #7 on: September 26, 2009, 03:38:38 am
Exactly, TY. However still - isn't it unusual for case above?

No, because the A320 is too large for the great majority of routes on the game. Even to "large" airports like YYC. I get a chuckle watching people waste money on A320s from any airport except the 350k's.

To put in real perspective, AC uses an E190 for PHX-YYC.

It would be disastrous to apply real life logic to the game, since the game does not take into account demographic factors. If it did, you would be able to earn heaps of money sending 767s or even 777s on LAX-JFK, and would make more profit flying HKG-SFO than HKG-ATL, for example.

But then, an A320 generating less revenue than an A319 on PHX-YYC does not mean that putting an A320 is the less profitable way to fly the route. You'll want to utilize as many hours out of your aircraft as possible. It is always better to put a plane slightly larger than optimal on the route to fill up the hours than to buy another airplane dedicated to that route and leave the larger aircraft not fully utilized.
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pseudoswede

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Reply #8 on: September 26, 2009, 06:58:16 am
It is always better to put a plane slightly larger than optimal on the route to fill up the hours than to buy another airplane dedicated to that route and leave the larger aircraft not fully utilized.

That's why route planning is so key.
             
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wishfulanthony

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Reply #9 on: September 28, 2009, 08:58:30 pm
Maybe I can have a second opinion...

[Evolve Air] Route Phoenix Sky Harbor - Calgary

Distance 1.227 miles
Phoenix 40M pas
Calgary 12M pas

A319LR 110 seats and A318 126 seats have same max profit 100k/route. A320 with 179 seats has max profit 95k/same route.
I suppose profit is calculated based on fuel consumption, distance, size of airport and ticket pricing. However I find it unlikely that A320 brings less money?

I think it depends on the following factors:

- The maximum distance all aircraft can carry (I believe that the A319LR could be deployed for longer, less-than-tapped routes, while the A318 can be used for short, heavily-traveled routes, while the A320 can work better for cross-country trips)
- The fuel consumption on all aircraft involved (I believe that if there is less fuel consumption per mile on an aircraft, you can raise the prices while having a great profit and saving the environment)
- Ticket pricing is also a crucial factor in the process (remember the law of supply and demand: if the route is rated as "Excellent", then you can raise the prices if there are not a lot of airlines vying the route, while lowering or matching the competitors' prices if there are several airlines doing the same route).

I believe if possible, use the A318 for your YYC-PHX trip; it carries a lot of people in short distances, yet it could really maximize your profits at the same time.
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eeikel

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Reply #10 on: October 04, 2009, 08:32:25 am
This is a game flaw,
it had 2 years ago and stil has
making money verry quick the cheaters doing it this way:

use a small aircraft
let it fly to as many airport gates you can rent
only one way flights
and you can charge crazy ticket prices.

It should be,
the aircraft shouldn't be able to fly after flying a one way route without a
connecting flight to somewhere else.
When there are enough passengers on a route a bigger aircraft should be able to
fly with the same ticket price, Competition kicks in when the amount of passengers
designated to a airport is travelling out,  then you should loose more money with a smaller aircraft
because expenses pro passenger are higher on a smaller aircraft.

so in your case you should be able to make more money, but you don't.
set it to 0,5 way and find a second route to cover the extra flight time.


eeikel

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Reply #11 on: October 04, 2009, 08:40:55 am
Try your self,
look at the ticket price, and the profit in relation to the purchasing price of the aircraft.
Let the airbus fly a half route,
Let it fly same route with return,
fly 2 or 3 times same route.
now use a smaller aircraft say 80 seats 1/2 the size of your airbus,
see how ticket price jumps up and profit
because you can buy 2 aircrafts for the same price the airbus costs,
with double the profit.

BTW this is annoying for honest game players ...


pseudoswede

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Reply #12 on: October 04, 2009, 09:01:05 pm
use a small aircraft
let it fly to as many airport gates you can rent
only one way flights
and you can charge crazy ticket prices.

Yes, I'd certainly like to see you do nothing but 0.5-frequency flights with one plane.
             
Planet Express Airways
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