Airline Mogul Forum

why, why, why!?!?

iranair777

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Reply #30 on: August 10, 2007, 12:20:27 pm
Quote from: "MrOrange"
If that's what you mean, if we notice you buy a lot of planes from us, you will get a discount. And let's just say you're definitely one of the airlines I'd think would apply to that category :)


can i join cause i've ordered about 70 planes from you? and thanks for the '330's :D


MrOrange

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Reply #31 on: August 10, 2007, 09:52:12 pm
As I said, when you order a lot, you'll get the discount. And is 70 a lot? Some would say yes, others wouldn't.  :wink:


JDubman

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Reply #32 on: August 12, 2007, 10:28:45 pm
Quote from: "Air Elbonia"
Advice: Learn to settle for 85%+ LF's, it'll make some of the small changes less frequent and less annoying... the sub 85%'s though tend to need updating.  I've got quite a few sitting in the mid-upper 90%'s that i'm quite content to leave there, as adjusting it will just cause a vicious cycle and will not yield a sufficient change in DOP.


That's a good strategy, but it doesnt really work when you have large aircraft with lots of frequencies.

Like airline X will have their fare at say, $100.  Then if I go to like $101, i'll have an LF of 50%, but when i go to like $100 or $99, it'll jump to 100%.  So in this case (which is a wide spread issue), its not really possible to get 85%.
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MrOrange

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Reply #33 on: August 12, 2007, 10:37:37 pm
True, but what Elbonia probably also means (? :) ) is that when a route does drop to 85% (when it has been at 100%), you should think about leaving it at 85% because those routes are far less susceptible to changes in the loadfactor.


Air Elbonia

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Reply #34 on: August 12, 2007, 10:52:34 pm
Basically what i meant was, if it's a relatively small drop... say up to 15%, just let it be rather then trigger the kind of price-war that gets you into the situation you mentioned (where 101 = 50%, and 99 = 100%.)  Not that it's not succeptable to a change, but it's just reasonably prudent the gain from that extra 15% likely isn't a huge amount a day, whereas the price war would be a huge hurt each day :P
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dktc

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Reply #35 on: August 13, 2007, 02:42:05 am
I understand JDubman. 7~8 out of 10 times, the situation is as he said. Only the remain 2~3 times, the initial drop would be less than 15%. Saying that, price wars are inevitable.
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Steeler83

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Reply #36 on: August 14, 2007, 10:38:35 pm
Quote from: "Air Elbonia"
Basically what i meant was, if it's a relatively small drop... say up to 15%, just let it be rather then trigger the kind of price-war that gets you into the situation you mentioned (where 101 = 50%, and 99 = 100%.)  Not that it's not succeptable to a change, but it's just reasonably prudent the gain from that extra 15% likely isn't a huge amount a day, whereas the price war would be a huge hurt each day :P

How about going from $100 and a 0% LF, to 98 and 100% again.  Case en point, what has been going on with me and my CLT base on several routes, more notable the hub-hub PIT-CLT route.  Eventually, I am going to remove the 734 and replace it with several 753 flights...  With the fare set at $50, unless forced to offer something else...

Regarding DOP, mine is over 9M, and I would like to bring that to more than 10M.  I will do more international expansion out of CLT and PIT given that int'l routes out of there highly profitable...
teeler83
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