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Leasing less efficient widebodies


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#1
Pacific

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I used to play Miller's AE but this is my first go at Yuxi's.

 

With the bottleneck in aircraft production lines, it seems the fast expanding airlines need to lease less efficient types. I'm in S1 and it's 1996 right now.

 

Let's use the 747-400 as an example (but there are worse, of course). Seats 660 but guzzles approx 70,000 fuel and the lease costs $2 million a month. The aircraft seems only viable on trunk routes where overcapacity and lowering margins are already taking effect.

 

Does overcapcity get so bad that you're in danger of making less than your lease/maintenance/gate slot costs with the 747?

 

Another example is the Il-96. Dirt cheap, seats 300, but guzzles 55,000 fuel. How would this aircraft fare?


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#2
Anzatax

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Well, I guess if you are trying to win by valuation or trying to expand very quickly, you will need to lease the less efficient widebodies. I am also in S1, and my competition is doing just that, although I am not :P

 

If by overcapacity you mean that more seats are offered than the route demand, I guess it is possible.

 

And what's Miller's AE?


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#3
S K Y

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And what's Miller's AE?

 

Miller was one of AE's earliest mods and developers. He handled things here before Yuxi took over.

 

Anyway, about the question,

Logically leasing such kind of planes won't be profitable, but it seems some valuation racer would try to grab any smallest profit possible from any route.

I guess the placement strategy is different: the more profitable planes for crowded routes so they can fight others, less profitable planes for routes that can be monopolized so you can play with ticket price.

Moreover, most valuation racers (spamliners) get their profit from spam IFS, so there's nothing to stop them from ordering every plane available in the market.

CMMIW


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#4
Pacific

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Well, I guess if you are trying to win by valuation or trying to expand very quickly, you will need to lease the less efficient widebodies. I am also in S1, and my competition is doing just that, although I am not :P

 

If by overcapacity you mean that more seats are offered than the route demand, I guess it is possible.

 

And what's Miller's AE?

 

I was looking at what was going on in Singapore that got me thinking about this! Yep, I mean exactly that about overcapacity. I'm experiencing some serious yield drop in some routes if I fly close to capacity while other routes do fairly OK even if over the capacity! However, I'm expecting many times over capacity when it comes to trunk routes with lots of competition and the resulting yield, I've still yet to experience it.

 

Also, Miller, as SKY says is the person who created the original AE.

 

 

Miller was one of AE's earliest mods and developers. He handled things here before Yuxi took over.

 

Anyway, about the question,

Logically leasing such kind of planes won't be profitable, but it seems some valuation racer would try to grab any smallest profit possible from any route.

I guess the placement strategy is different: the more profitable planes for crowded routes so they can fight others, less profitable planes for routes that can be monopolized so you can play with ticket price.

Moreover, most valuation racers (spamliners) get their profit from spam IFS, so there's nothing to stop them from ordering every plane available in the market.

CMMIW

 

Ahh, the magical Scam IFE. Got it, thanks!


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#5
Whirligig

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Honestly, most russian aircraft are close to rubbish. (with some exceptions) 






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