Recommendations on dumping
Started by 737MMA, Feb 02 2006 05:05 PM
#1
Posted 02 February 2006 - 05:05 PM
I'd like to hear your thoughts on the best airplane to dump $1 fares on people. I'd like to hit the short routes, STL-MDW, STL-MSP, STL-ORD, and so-on and so-forth. Sure, the 400D is a great candidate to deal with the limited number of slots I have at those other airports, but is it really the best? Why do I want to dump capacity on these routes? Simple, just trying to make my $220 million terminal worth the money.
#2
Posted 02 February 2006 - 06:11 PM
Dumping? Use the newb technique and put as many aircraft on the route as possible with varying frequencies. That way you are not only fighting other airlines, you are also fighting your own aircraft for load factor. That's why some of these airlines with 1-5 aircraft on the same route are making little money.
Now, if you want to make money on these routes and make your hub profitable, you might want to try something else instead. The biggest difference is that last round the one-way routes added so much to the total number of passengers and the limited number of gates available. Without the one-ways you have a limited number of cities to service and with the limited number of gates, you may have to spend a lot of money on 5 gate terminals to make it worth your while. It may prove difficult to get to the point where hubs are benificial (double the ticket price of the competition).
Anyways, if you want to keep the LF, you have to balance size versus demand. I know on routes like LAX-SFO, you can get 8 frequencies with a S2000 and thats 440 seats per day. Now if I place a B739 on the same route (as I did last round) I may have to lower the frequency to 5 times a day, but I now have 1062 seats available on that route. I did manage to do the 7x daily with the B739 and still have profits of over $250K on that one route.
I would suggest try it in stages. Start by doubling capacity on all of the short routes you want and see how that effects your load factor and prices. Then once you have them all maxed out on frequency and have a good load factor (short routes - 70%-95%), try an aircraft with triple capacity. Also, you may check some of your other routes once in a while to see if you are at the point yet where you can raise ticket prices over the competition and still make a profit. :sdrool:
Now, if you want to make money on these routes and make your hub profitable, you might want to try something else instead. The biggest difference is that last round the one-way routes added so much to the total number of passengers and the limited number of gates available. Without the one-ways you have a limited number of cities to service and with the limited number of gates, you may have to spend a lot of money on 5 gate terminals to make it worth your while. It may prove difficult to get to the point where hubs are benificial (double the ticket price of the competition).
Anyways, if you want to keep the LF, you have to balance size versus demand. I know on routes like LAX-SFO, you can get 8 frequencies with a S2000 and thats 440 seats per day. Now if I place a B739 on the same route (as I did last round) I may have to lower the frequency to 5 times a day, but I now have 1062 seats available on that route. I did manage to do the 7x daily with the B739 and still have profits of over $250K on that one route.
I would suggest try it in stages. Start by doubling capacity on all of the short routes you want and see how that effects your load factor and prices. Then once you have them all maxed out on frequency and have a good load factor (short routes - 70%-95%), try an aircraft with triple capacity. Also, you may check some of your other routes once in a while to see if you are at the point yet where you can raise ticket prices over the competition and still make a profit. :sdrool:
#3
Posted 03 February 2006 - 02:06 AM
I'm at MCI right now, but as folowing the TWA ways (LAX-MCI-STL-JFK--CDG) STL is my next stop, and I'll show you how it's done .
longer domestic use the 753 shorter 717 due to turn times.
longer domestic use the 753 shorter 717 due to turn times.
#4
Posted 03 February 2006 - 02:15 AM
I don't support those who do not play the game properly.
#5
Posted 03 February 2006 - 02:19 AM
I don't support those who do not play the game properly.
please define "playing the game properly"....
(just wondering; i'm not even playing this round)
#6
Posted 03 February 2006 - 02:39 AM
The way it was ment to be played, it is a real life simulation.
#7
Posted 03 February 2006 - 02:47 AM
So let's pile 5000 airlines on a single route with airplane size ranging from a 1900 to a 747-400D...real life simulation, no. Decent simulation of free market economics, abso-freaking-lutely.
#8
Posted 03 February 2006 - 03:02 AM
The way it was ment to be played, it is a real life simulation.
Yeah, ok. Would you please - go look at some real world flights that use 767 or larger on short segments. Try AMS-LHR to start. I know at least one airline that uses 767 on that route and its not just for positioning either.
And if it were really not meant to be played that way, their would be penalties for short routes or minimum and max range for each aircraft.
#9
Posted 03 February 2006 - 06:23 AM
I don't support those who do not play the game properly.
Well, since its a deregulated market, anyone can do anything they want. We may not like it, but hey, we got to live and deal with it. This aint a game to get what u want, u have to push and shove and make urself on the route, so others notice and pay attention.
#10
Posted 03 February 2006 - 06:29 AM
I think we have penalties for short routes (based on plane size), and we certainly have max range for each aircraft.And if it were really not meant to be played that way, their would be penalties for short routes or minimum and max range for each aircraft.
Penalty for short routes:
Try a very large plane and a small one on the same short route for the same normal ticket price. Under otherwise equal circumstances, a passenger has a proportionally larger chance of ending up in the large plane. In the end, all available passengers would be divided between the large plane and the small plane in the same ratio as the available seats. This means the load factor for both planes should be the same. If I recall correctly, this is not the case. Passengers are less likely to board the large plane on this short route.
#11
Posted 03 February 2006 - 08:29 AM
Yah, KLM cos i've flown that flight KL1013 LHR-AMSYeah, ok. Would you please - go look at some real world flights that use 767 or larger on short segments. Try AMS-LHR to start. I know at least one airline that uses 767 on that route and its not just for positioning either.
#12
Posted 03 February 2006 - 10:56 PM
Well Mr Torque, you are part Right and part Wrong, I list the exact for this reference
KL1007 AMS-LHR 0825/0900 rtn KL1008 LHR-AMS 1000/1225
Next 767 service is twice a day BA LHR-FRA
On the AMS-LHR this is a once a day service, if you was to look at players in this game they run some like 10+ times a day, OVERKILL !!!!!!
KL1007 AMS-LHR 0825/0900 rtn KL1008 LHR-AMS 1000/1225
Next 767 service is twice a day BA LHR-FRA
On the AMS-LHR this is a once a day service, if you was to look at players in this game they run some like 10+ times a day, OVERKILL !!!!!!
#13
Posted 03 February 2006 - 11:10 PM
Don't some people understand that this WILL NOT be changed?
Maverick Airways CEO.
Proud member of the Eurowings alliance.
Airline ID 2157
Proud member of the Eurowings alliance.
Airline ID 2157
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