Airline Mogul Forum

why, why, why!?!?

iranair777

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on: August 07, 2007, 03:29:16 pm
Why is there suddenly soooooo much competition???? its harrasing for my short haul routes and i've been forced to close a couple of routes. in a matter of about half a week from a sudden change in 100% load factors i'm now getting and average of 30-50%.

its just ridiculous :(

right, happily i've got that out, been wanting to do it for ages


dktc

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Reply #1 on: August 07, 2007, 03:31:38 pm
At least your competition has not lashed out at you in the forum :wink:

This is the nature of the game. You could either cahnge base or lower your ticket price.
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iranair777

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Reply #2 on: August 07, 2007, 03:34:13 pm
Quote from: "dktc"
At least your competition has not lashed out at you in the forum :wink:

This is the nature of the game. You could either cahnge base or lower your ticket price.

thats the problem, if i lower the price i don't get enough money to especially fund my other planned expansions

i bet you airlines don't get sooooo much competition    :o


dktc

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Reply #3 on: August 07, 2007, 03:36:21 pm
Quote from: "iranair777"
i bet you airlines don't get sooooo much competition    :o


How much did you bet?? I have won all of them.

Just explore around the forum and look back to the posts a month or two before. You would see how much competition my airlines had.
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StephenM

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Reply #4 on: August 07, 2007, 03:44:35 pm
We are working to remove airlines with mutliple accounts. This as you all know is not allowed in Airline Mogul and fines along with account deletion are being dished out. If you have more than 1 account and dont want to be fined I'd advise you own up!
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iranair777

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Reply #5 on: August 07, 2007, 03:50:15 pm
Quote from: "StephenM"
We are working to remove airlines with mutliple accounts. This as you all know is not allowed in Airline Mogul and fines along with account deletion are being dished out. If you have more than 1 account and dont want to be fined I'd advise you own up!


well, at least i'm a good boy and i've trashed my idea of starting a airline with the base in tehran  :wink:, so instead i'll do it next round


StephenM

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Reply #6 on: August 07, 2007, 03:51:27 pm
Well I'm sure you'll make plenty of money there, I didn't realise how busy Iranian airports were!
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Crow

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Reply #7 on: August 07, 2007, 05:46:49 pm
My DOP is getting smashed before i even set another route , i was away in 4 hours and 1 million is already gone from my dop.. :(


iranair777

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Reply #8 on: August 07, 2007, 09:20:14 pm
Quote from: "Crow"
My DOP is getting smashed before i even set another route , i was away in 4 hours and 1 million is already gone from my dop.. :(


advice: update your prices as soon as you see the DOP dropping, you can keep it up to a point that way. I know it's hard  :cry:


Air Elbonia

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Reply #9 on: August 07, 2007, 09:23:18 pm
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.
Air Elbonia, First in Time Travel since 2073!  (AEB ID in Game: 333)


Spaceball

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Reply #10 on: August 09, 2007, 08:33:47 am
One of my competitors dropped out. Therefore I own all of his routes, were I battled him alone. I fly to small airports and my airplanes do not make big amounts of money but as more you have as more money you make. I even built bases on small airports. When you make interesting routes from those small airports you can earn good money. If you can't afford big airplanes then buy more smaller ones or wait until you are fit enough to purchase the big ones! If you buy a big one new it takes much longer until the company delivers - keep that in mind. Smaller airplanes are faster in service because you don't have to wait so long!

I have withdrawn from two routes only. Just because they didn't make much money. There is one route in Europe were some guys battled over the price and the fare is 19,-€. So I looked for more interesting routes. I try to have my airplanes in the air all the time. Some of my airplanes are flying to 5 destinations, just to avoid them resting without earning. The Bombardier CRJ Planes are great to make big money by having several ones. Even the small Boeing 737 makes very good money. The ATR-72 is also not bad in producing big income. Those are very cheap airplanes, apart from the little more expensive 737. If your airplane is flying to 5 destinations and making 4 times 25k per day and another 15k per day for the 5th destination than you actually make a lot of money with one small airplane, like the Dornier 228. Don't go for the Jumbos early, stick with your small airplanes until you make enough money that you can easily go for bigger airplanes.

I started with a couple of Dornier 228 Airplanes. Sure, their old and tiny but they were available and more important they were very cheap. I still use them. I just ordered new ones to replace the Dornier's. When I ordered the replacements I had 90million left. The price is just 2million for a single Beech 1900D to replace my aging Dornier fleet.

Don't lease to much airplanes. Don't lease jumbos, just because you can fly a certain route. By used planes, you can use them right away because you don't have to wait for the delivery. Check the airplane prices if it makes sense to pay more than the new price for a used one. Sometimes its good to pay an overpriced and used airplane when you can use it right away. Sometimes you better wait for the delivery.

Look for routes were no one else is flying. Its easy to check out. Look at the Airport site of the departing airport and the arriving airport. There you can see easy if you will be the only one flying this route and if you are you can make higher prices than dealing with competetors.

Sometimes it is better to fly a route 10 times a day and sometimes 0.5 times a day. You have to try out with the prices and the amount of flights.

Don't give up your profitable routes with small airplanes just you can buy a jumbo after selling the small airplanes. They produce income while you can't play!

cu, Spaceball
roud Member of SAG


etkuo

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Reply #11 on: August 09, 2007, 09:03:44 am
Quote from: "Spaceball"
One of my competitors dropped out. Therefore I own all of his routes, were I battled him alone. I fly to small airports and my airplanes do not make big amounts of money but as more you have as more money you make. I even built bases on small airports. When you make interesting routes from those small airports you can earn good money. If you can't afford big airplanes then buy more smaller ones or wait until you are fit enough to purchase the big ones! If you buy a big one new it takes much longer until the company delivers - keep that in mind. Smaller airplanes are faster in service because you don't have to wait so long!

I have withdrawn from two routes only. Just because they didn't make much money. There is one route in Europe were some guys battled over the price and the fare is 19,-€. So I looked for more interesting routes. I try to have my airplanes in the air all the time. Some of my airplanes are flying to 5 destinations, just to avoid them resting without earning. The Bombardier CRJ Planes are great to make big money by having several ones. Even the small Boeing 737 makes very good money. The ATR-72 is also not bad in producing big income. Those are very cheap airplanes, apart from the little more expensive 737. If your airplane is flying to 5 destinations and making 4 times 25k per day and another 15k per day for the 5th destination than you actually make a lot of money with one small airplane, like the Dornier 228. Don't go for the Jumbos early, stick with your small airplanes until you make enough money that you can easily go for bigger airplanes.

I started with a couple of Dornier 228 Airplanes. Sure, their old and tiny but they were available and more important they were very cheap. I still use them. I just ordered new ones to replace the Dornier's. When I ordered the replacements I had 90million left. The price is just 2million for a single Beech 1900D to replace my aging Dornier fleet.

Don't lease to much airplanes. Don't lease jumbos, just because you can fly a certain route. By used planes, you can use them right away because you don't have to wait for the delivery. Check the airplane prices if it makes sense to pay more than the new price for a used one. Sometimes its good to pay an overpriced and used airplane when you can use it right away. Sometimes you better wait for the delivery.

Look for routes were no one else is flying. Its easy to check out. Look at the Airport site of the departing airport and the arriving airport. There you can see easy if you will be the only one flying this route and if you are you can make higher prices than dealing with competetors.

Sometimes it is better to fly a route 10 times a day and sometimes 0.5 times a day. You have to try out with the prices and the amount of flights.

Don't give up your profitable routes with small airplanes just you can buy a jumbo after selling the small airplanes. They produce income while you can't play!

cu, Spaceball


a very nice guide here. should put this as sticky


MrOrange

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Reply #12 on: August 09, 2007, 10:17:04 am
Some things I'd like to point out though:

Leasing isn't necessarily bad, you just have to know what you're doing. It is much more useful to lease medium-size aircraft, such as the 737 series, because they generally cost less to lease per month (brokers offer it around 1.5 million) and they generate a much higher income than the larger, and more expensive, long-range airplanes.

What I tend to do before wanting to lease an airplane, is take (the leasing fee + X) and divide it by 24, where X equals the average slot cost (€40.000) times the number of routes you can fly with it. This will give you the approximate DOP the airplane has to make to become profitable.

So if I want to lease a 737-400 from my own brokerage (leasing at €850.000), which could be making 7 or 8 flights per day, I calculate the following:
Code: [Select]
X = 8 * 40.000 = 320.000
(850.000 + 320.000) / 24 = 48.750

So the aircraft will have to make €48.751 per day to be profitable, which is very possible with a 737-400. However, if I decide to lease a 747-400 from another airline at the used market for 12 million, it may seem like a reasonable price, but try to calculate it.
Code: [Select]
X = 2 * 40.000 = 80.000
(12.000.000 + 80.000) / 24 = 503.333

Now, the aircraft will have to make €503.334 to be profitable, which 1) is much harder, and 2) will give you a much lower return.


Christopherwoo

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Reply #13 on: August 09, 2007, 10:41:35 am
shhhhhhhh everyone... I'm leasing out my 777-200's for 15 million a month and making quite a tidy profit as a result! Just out of interest. what's everyone's DOP's? Mine's almost 27 million a day.


MrOrange

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Reply #14 on: August 09, 2007, 10:44:54 am
Mine has been up to €80 million, but I didn't have much time available and had a brokerage to run, so that has dropped to €40 million with an additional €144.5 million income monthly on leases.

EDIT: Can a 777-2 make €630.000 per day? :wink:


 

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