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Chavaquiah

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Reply #15 on: March 02, 2008, 06:15:46 pm
Two things:

1) You have a plane doing 2x. Perhaps you want to try lowering it to just 1x and, with the hours you free, find another route to put the same plane on. You'll probably discover that you make much more profit that way.

2) When you have plenty of flights from Manila you should indeed start looking for a second base. Now, you're renting gates elsewhere and each gate is good for 10 slots or frequencies. If your second base is not far from your first, you can fly to the same airports you're already renting gates at, thus saving a lot of money on yet new gates. Mind you, creating a base (other than the first one, for free) costs a lot of money. More precisely 50x the cost of each gate, plus you have to rent at least 4 gates there before you can create a base. So, it's not something you should do too early.


scottj63

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Reply #16 on: March 02, 2008, 07:17:37 pm
thank you for the advice, I have changed some flights from 2x to 1x a day with also finding new routes with the saved hours and I have added 50,000 to my DOP. The regional routes around the Philippines are low money routes but a lot of them add up.


Chavaquiah

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Reply #17 on: March 02, 2008, 07:41:01 pm
Indeed, regional routes are not big money makers. However there's also less competition and you can (and indeed should) use smaller and cheaper planes. So you can make up with volume.


scottj63

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Reply #18 on: March 04, 2008, 04:15:35 am
i am really enjoying this so far. I am up to 1.1 million DOP and have bought a couple more small aircraft from the "for sale" market that are doing well. I finally figured out why you build a second base (laughs) no more gate fees at your existing stops due to the frequencies available. Thank you everyone for the advice and help here. I am on an extended break from work living here in the Philippines and running my airline from here is actually teaching me a bit about where I live in real life due to the research i am doing. Of course my filipina wife thinks this is absolute stupidity. She saw that I have 20 million cash here and she got pissed thinking that I had money in real life she didnt know about (laughing) I told her it was a game and she said "you stupid" (laughing) hard)

scott in philippines


Steeler83

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Reply #19 on: March 04, 2008, 05:40:45 am
Quote from: "mg35pt"
Indeed, regional routes are not big money makers. However there's also less competition and you can (and indeed should) use smaller and cheaper planes. So you can make up with volume.

That's what I am doing with my airline.  I generally have smaller airplanes anyway, and the bigger markets tend to have tons and tons of competition on them.  I wanted to run an all-jet airline, but the Shorts 360s I ordered and run are doing extremely well for me.  I am also starting to place multiple aircraft on some of my routes (I have two different Shorts 360s assigned on routes such as PIT-BFD/ILG, as well as DCA-LWB.

A few people have given me advice, and so far it's working quite well.  I think I might be on my way to having my best round ever!!
teeler83
Founder and CEO of Buon Giorno! Airlines


Chavaquiah

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Reply #20 on: March 04, 2008, 08:18:07 am
Quote from: "Steeler83"
I am also starting to place multiple aircraft on some of my routes

That's certainly something you can do and it may even work well for some routes. Generally speaking, though, it tends to be a major headache, as you are competing with yourself. A little bit like doing multiple frequencies, only much worse. :wink:


scottj63

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Reply #21 on: March 05, 2008, 01:16:37 pm
Not much of an improvement since my last post. I have orders 2 737 business jets and another long range business jet also to expand flights to australia and the middle east from my base in the Philippines. There is another airline that is about 3 times my size putting planes on all my routes also, but it isnt affecting me that much yet. Just had to lower a few prices to bring my profitability back up. I want all flights at 90% occupancy. What I see is that he has much faster and larger aircraft, so I can't really compete with him. I want to lease a 60 seat plane with a huge range but I can't justify the 4.5 million a month for it. That is 150,000 a day plus gate fees. I only have 3 planes that make that much now (laughs)

I am really enjoying the game. My worth is up to 115 million and I think if I could join an alliance in the southeast asian market I would do MUCH better. So if anyone needs someone in their alliance in the pacific, I have like 40 cities I fly too that have generally 90% of their frequencies available. (smiles at his shameless advertising)

Scottj63 (Living in the Philippines for the time being)


Chavaquiah

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Reply #22 on: March 05, 2008, 01:50:39 pm
Saw your (other) post about joining an alliance. Maybe you do not want an alliance in the same area you're doing yourself. The point (one of them, really) in joining an alliance is to gain access to different markets other than the one you're already in.

As for larger competitors with bigger planes, there's no need to worry too much. Unless they start pumping up the frequencies and smashing prices, your smaller planes allow you to stay on the route, charging higher fares. Also, leasing a 60 seater for 4.5M would be madness. You can buy a brand new one for not much more. Or save for an extra day and get one with better range.


Steeler83

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Reply #23 on: March 05, 2008, 02:29:34 pm
Quote from: "mg35pt"
Quote from: "Steeler83"
I am also starting to place multiple aircraft on some of my routes

That's certainly something you can do and it may even work well for some routes. Generally speaking, though, it tends to be a major headache, as you are competing with yourself. A little bit like doing multiple frequencies, only much worse. :wink:

Yeah, that is the trouble I am having.  While it is more realistic than running nothing but 1x frequencies, there are numerous routes I have tried with 2 Shorts 360s, Fokker F28s, or one Shorts/Fokker, and it destroys my profit/LF on the other flight.  There are a handful of flights where one has a LF of 70-80%, while the original flight is still at 90% or above.

I will likely start to restructure my services tho, especially with my "Link" service (Shorts 360s and Fokker F28s).  Some routes might even get a DC9 in order to compete better with the other airlines...
teeler83
Founder and CEO of Buon Giorno! Airlines


scottj63

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Reply #24 on: March 06, 2008, 05:42:48 pm
Well I am up to a worth of 141million with a dop of 1.7million. I have 18 planes in the company and 65 fun filled destinations that we fly too. The game is enjoyable. I know my place in the world (smiles) I can't compete with the big guys, so i dont try. I am mainly using small planes for every airport in the Philippines. I am still interested in joining an alliance to open up more gates (read:free) for me. I have 3100 passengers a day and I am glad that planes can't crash (or can they????) because I dont have the cash for the lawsuits (smiling)

Scottj63 in the Philippines on an extended break


Chavaquiah

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Reply #25 on: March 06, 2008, 09:55:55 pm
No, they don't crash. And they're always on time. It's a beautiful world. :D

Quote from: "scottj63"
I am still interested in joining an alliance to open up more gates (read:free) for me.

What do you mean free? It would be nice, but free they ain't! :P

When you join an alliance you can use your partners bases as if you had created a base there (subject to some limitations). But you still have to rent gates there (and at your destinations).


scottj63

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Reply #26 on: March 08, 2008, 01:12:56 pm
ahhhhhhhhhhh ok, I thought you used your alliance members gates at an airport......... Hmmmm so what is the benefit of joining an alliance.

scott in the philippines


Chavaquiah

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Reply #27 on: March 08, 2008, 01:41:43 pm
Quote from: "scottj63"
Hmmmm so what is the benefit of joining an alliance.

Check this thread: http://stephenm.org/forum/viewtopic.php?t=5154


scottj63

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Reply #28 on: March 12, 2008, 10:53:18 am
Well I am doing ok, my dop is about 2.2 million a day and my worth is up to 320 million. A huge airline has moved to Manila and is putting planes on all my routes for lower prices (laughing) Nice strategy. I am doing ok still though, it is fun. I fly to some pretty obscure places and I did that on purpose to see what would happen, sure enough the other guy matched my routes. I bet the mongols are surprised to see 2 airplanes a day there (laughing). I bought my first long range large plane. 189 people range of 5200 miles. It is funny, I am not making very much with the 2 routes I have it on and there is no competition for those routes. I thought the profit margin would be much higher.

scott in philippines on a longggggggggggg vacation


Dooskie III

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Reply #29 on: March 15, 2008, 07:10:49 pm
Quote from: "dktc"
Quote from: "iranair777"
You will have fun with the community her, but just stay away from DKTC :lol: ;)


Hey! :x
I am not that bad... as long as you don't cross me :P

Yeah, right.  8)


 

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