Going Low-Cost

[Samuel]

What do you guys think about going Low-Cost. You get to dominate the market without having to change the Loadfactor (in most cases).

[Virgin Serbia]

Dunno, everybody else would end up lowering price too. Look at Heathrow and Atlanta. Routes to other large airports are almost as unprofitable as routes from an airport with 0 passengers

[pseudoswede]

That is a pretty useful strategy. I tend to slash fares €25-50 per edit ... especially when someone is being annoying and dropping fares by €0.01 or €1.

The biggest problem is that some dimwits will just continue to match or lowball you by €1 when they don't realize they can charge a higher fare and maintain 100% loads.

If based at an airport with lots of competition, this strategy won't last very long.

[Tiger In Training]

I think it would be hard to indeed, especially as you don't know the MX for each plane (hint hint) and its not like you can negotiate gate prices or pay staff minimum wage.

I would take my hat off to anybody who can do it, in AM.

[StephenM]

What do you guys think about going Low-Cost. You get to dominate the market without having to change the Loadfactor (in most cases).

The only fare where that is possible is at €1. As anything above €1 will make it possible for others to drop the fare.

[dktc]

What do you guys think about going Low-Cost.

There is nothing as low "cost" in AM. There is only low revenue.

[Samuel]

What do you guys think about going Low-Cost.

There is nothing as low "cost" in AM. There is only low revenue.

What I meant was Low Cost Carrier.

[dktc]

What I meant was Low Cost Carrier.

And the reason they can charge low fairs is because they have lower costs

[LOT 737-300]

I believe what he means is an LFC, or Low Fare Carrier.

[MAXAir]

That is a pretty useful strategy. I tend to slash fares €25-50 per edit ... especially when someone is being annoying and dropping fares by €0.01 or €1.

I don't know how that's annoying, that makes the most sense to keep your revenues up.  If you lower it by 25-50 euros each time the game just becomes a race to the bottom.
Let's say you start at 250 euro's, then I drop my fair to 200, then someone else to 175, before you know it we're all at 50 euro's making no profit.  I'd rather have to change the price by a euro or 2 everyday and maximize everyone's profits.

[pseudoswede]

I'd rather have to change the price by a euro or 2 everyday and maximize everyone's profits.

That's where we differ: I don't.

To put it another way...

If you and another airline are at the same base. The other airline has 40 routes, and that's all he will do. Why would you want to maximize his profits (so that he can order big planes for those routes)? I would flood those routes and send him to bankruptcy.

[MAXAir]

Why would you want to maximize his profits (so that he can order big planes for those routes)?

I see what you're saying if you're talking about a route with only 2 people on it, but if there's more than 2 it's a losing battle.  I'd rather maximize my profits and use that base as a stable money-maker than lower my profits and basically waste the base just to bankrupt someone else.
If the other player does order bigger planes, then you can increase frequency with a smaller plane and go 1 euro below their price.

[LOT 737-300]

I see what you're saying if you're talking about a route with only 2 people on it, but if there's more than 2 it's a losing battle.  I'd rather maximize my profits and use that base as a stable money-maker than lower my profits and basically waste the base just to bankrupt someone else.
If the other player does order bigger planes, then you can increase frequency with a smaller plane and go 1 euro below their price.

Not if you have over 300 routes from that hub, plus some 150-200 out of your others. 

[MAXAir]

I see what you're saying if you're talking about a route with only 2 people on it, but if there's more than 2 it's a losing battle.  I'd rather maximize my profits and use that base as a stable money-maker than lower my profits and basically waste the base just to bankrupt someone else.
If the other player does order bigger planes, then you can increase frequency with a smaller plane and go 1 euro below their price.

Not if you have over 300 routes from that hub, plus some 150-200 out of your others. 

Really?  Look at me in W8

[Jubaka]

Hey, this game really isn't about going low-cost. It's a totally different world in the real world. I guess if you want to replicate it here it would just be too damn complicated.