Finances

[ed1984]

The daily profit each route makes for each aircraft...

Is that per amount of  frequencies or per destination?

[StephenM]

You already posted this in the other thread. Its basically per destination, but if you have 2 routes to the same destination you get both profits.

[ed1984]

so, lets say i have a route to New York from LAX,

Obviously its better to have 1 frequency making 130,000, than 2 frequencies making 120,000 ?

but surely in real-life if you have a full 100% load on each frequency you'd make more profit with 2...you should really make double shouldnt you? or am i completely missing something??

Just wondering...and a little confused...   Thanks

[StephenM]

I'm not sure how you are with Economics, the way it works in AM is that lets say you have a 100 seat aircraft on a route with a fare of €100. At that price there are 100 people willing to pay it, thus you get 100% loadfactor. Any more and you loose money. (The best way to play). If you however add a second frequency and you now have 200 seats, you as an airline want 100% loadfactor, but you may need to reduce your fare to €50 to find 200 people willing to fill the plane on the route. The bias is towards one frequency at the moment as we still have a number of factors we need to add in.

[ed1984]

I see,
Thanks for your help.