The Timsher Air Report
#1
Posted 18 July 2007 - 06:09 PM
#2
Posted 23 July 2007 - 06:18 PM
June Year 1: Timsher Air reports a sudden surge of competition (including one very large player) as the main cause of the dramatic price drops and corresponding profit dip. The airline was apparently cruising along with 800k dop with 5 beeches when the heavy hitter airline entered the market. Profits dropped to 400k within the first month of the new competition but have rebounded lately to 700k with Timsher Air now running 4x ATR-42s and 2x B1900s.
"We had to change strategy mid-stream which will hurt any airline. We had a completely beech-centric strategy operating when the new competition showed up, we shortly found out that while the strategy would keep us afloat we would not be competitive in the market if we maintained status-quo. So it required a complete rethink and we moved into a more CPS (Cost/Seat) oriented business model." stated Timsher Air CEO
When asked if moving hubs was a consideration the CEO replied "It was on the table during those first few hours in the boardroom, but it was found that there was no suitable place that would offer more of a benefit than our current hub.... We've made our bed, we're going to stick to our guns, and hopefully come out on top at MCO."
Timsher Air currently retains the highest PAX percentage in MCO (14%), and is ranked 45th
#3
Posted 30 July 2007 - 04:44 PM
January Year 2:
The battle continues for MCO as Timsher air retains it's slim lead (22% vs. Australis' 16%). Meanwhile the airline's DOP has gone up to $2.1mil, while it's still significantly behind the leaders of the game, it is more than several airlines ahead of Timsher Air.
"I expect to gain positions all throughout this week, I'm just not content with staying in the 50s, and progress has to be made on that front."
Timsher Air's fleet currently consist of 8x ATR42s, 5x ERJ145er, 2x ATR72s, and is ranked 55th.
#4
Posted 09 August 2007 - 06:24 AM
October Year 2:
Only months after starting routes at it's newly formed hub, Timsher Air has encountered some very unwelcomed competition, removing all available gates. This has left Timsher Air at a crossroads about what to do for the future of the airline's new hub.
"We had a strategy there where we'd slowly grow adding close routes about 2/day in good faith. This upstart comes along decides to defraud the airport commission and make false promises about flying 100+ times/day, I guess they left out the part that they'd all be to the same destination."
"What I want to know, is if the good people of the city of San Diego really want to fly to Ontario 122 times a day. It's a waste of taxpayers money and I really doubt that any airline would have that route structure set up in good faith."
When the CEO was asked about the future of SAN, "Well, the competition wants to play dirty; I've got 16 gates there, so I say deal me in."
Timsher Air currently maintains a 25% majority share at MCO with a dop just over $5 mil and is ranked 48th.
#5
Posted 09 August 2007 - 06:57 AM
New hub, placed on holding pattern
October Year 2:
Only months after starting routes at it's newly formed hub, Timsher Air has encountered some very unwelcomed competition, removing all available gates. This has left Timsher Air at a crossroads about what to do for the future of the airline's new hub.
"We had a strategy there where we'd slowly grow adding close routes about 2/day in good faith. This upstart comes along decides to defraud the airport commission and make false promises about flying 100+ times/day, I guess they left out the part that they'd all be to the same destination."
"What I want to know, is if the good people of the city of San Diego really want to fly to Ontario 122 times a day. It's a waste of taxpayers money and I really doubt that any airline would have that route structure set up in good faith."
When the CEO was asked about the future of SAN, "Well, the competition wants to play dirty; I've got 16 gates there, so I say deal me in."
Timsher Air currently maintains a 25% majority share at MCO with a dop just over $5 mil and is ranked 48th.
Oh get off your high horse will ya!
Just as real as. And I could name quite a few other airlines doing the same thing, big and small.
MCO - MYR 9X
MCO - JAX 13X
MCO - TPA 9X
MCO - SRQ 7X
SAN - SNA 20X
and so on. It's all one of the same. You wanna play dirty fine by me , let's rock and roll.
#6
Posted 09 August 2007 - 07:10 AM
#7
Posted 09 August 2007 - 04:19 PM
All are making $100k+ (except the 15+ freqs which are usually in the $150k range). It's a profit thing, the more seats you have the more money you make (until you put multiple aircraft on the same route that is). Making money and holding gates weren't the same thing last I checked.MCO - MYR 9X
MCO - JAX 13X
MCO - TPA 9X
MCO - SRQ 7X
SAN - SNA 20X
It's not me, probably one of your "friends" (and I use that term as loosely as possible) you brought along with you to MCO.Oh thats nothing.. u should ask him about the change aircraft he does.
You don't have to be on a high horse when you're already standing on higher ground.Oh get off your high horse will ya!
btw, this is the perfect place for this...
GO POKES!
I will continue this protest silently.
#8
Posted 10 August 2007 - 04:04 AM
cleveland rocks! pittsburgh sucks! and i wont even get into that other city in that state over there near washington DC that stole my team. i also dont give a damn for the whole state of michigan cause im from ohio but thats beside the point!
#9
Posted 10 August 2007 - 07:24 AM
changing aircraft? wow. i love the dirty play allegations....its amazing though that people think that people who play the game honestly can be playing dirty...personally i think that its stupid. but to each his own. hopefully youll see the light and not fight a stupid war between yourselves lol
Im saying it as it happens on my routes, thats all.
And i got no problem with timsher flying 8-10x either.. each to their own... but its an easy way to acquire marketshare, which is well known.
#10
Posted 20 August 2007 - 03:39 PM
Oct Year 3:
Based on renewed profits in the MCO Market, Timsher Air has reached $10mil DOP for the first time this round.
"We've recently expanded into some high-profit markets that have boosted the overall value of our hub at MCO. We hope to ride these profits into the international market during the next year as we begin flights into europe."
Timsher Air is currently 2nd at MCO with a 27% market share and is ranked 35th
#11
Posted 13 September 2007 - 09:42 PM
September Year 5:
In a surprise move Timsher air has announced their intentions to cease all A330 routes from MCO and SAN immediately and to liquidate all frames. Sources inside the company cite variable load factors and profit growth issues as the main cause of this shift.
The CEO had the following to say about the sudden change: "Our managers just weren't doing their jobs, planes were leaving empty or half full when we needed them to be 70%+ to break even. So we decided that given the market the prudent thing to do would be to sell them off. We have reached agreements with multiple airlines within our alliance to purchase all of the A330s. And we will replace the planes with ones which are more compatible with our new business model, hopefully this will be exactly what our company needs to kick-start us back into growth." When probed about the new plans for Timsher Air, he replied: "It'll be domestic, that's all I can say for now."
After the announcement Timsher Air stocks fell 10% to close at $45.08 per share.
Timsher Air is currently ranked 34th overall, and holds a 20% share of MCO
#12
Posted 19 September 2007 - 06:12 AM
Thanks
#13
Posted 19 September 2007 - 06:14 AM
We have reached agreements with multiple airlines within our alliance to purchase all of the A330s
#14
Posted 19 September 2007 - 06:41 AM
#15
Posted 20 September 2007 - 02:26 AM
Im saying it as it happens on my routes, thats all.
And i got no problem with timsher flying 8-10x either.. each to their own... but its an easy way to acquire marketshare, which is well known.
It's happening on my routes too. I'm not 100% sure how it works but around 95% of my 1 way rotues out of LAX with competition keep getting set to 0% instead of the usual 100% that's happened in past rounds. I decided to investigate and found my competitors were not abusing any of the bugs that could cause this. I'm wondering if it has to do with how large your airline gets in a city or something but something is different this round in my opinion. A few quirks need fixing. Anybody noticed how you can't sort aircraft that you own or in the used market recently?
#16
Posted 20 September 2007 - 03:34 AM
It's happening on my routes too. I'm not 100% sure how it works but around 95% of my 1 way rotues out of LAX with competition keep getting set to 0% instead of the usual 100% that's happened in past rounds. I decided to investigate and found my competitors were not abusing any of the bugs that could cause this. I'm wondering if it has to do with how large your airline gets in a city or something but something is different this round in my opinion. A few quirks need fixing. Anybody noticed how you can't sort aircraft that you own or in the used market recently?
The thing with the 100% to 0% LF problem on one-ways is that ur competitors may just be closing and reopening the routes, which i found to be the lead problem in making routes go to 0% LF. And isnt not helpful to anyone, but its being the same ever since i have played AE actually
And sorting out the aircraft on the aircraft page or used market is a problem that has occurred this round. Its being documented on a thread in the bugs page i believe.
#17
Posted 02 November 2007 - 10:48 AM
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#18
Posted 05 November 2007 - 08:24 PM
Out of curiousity how can you make a profit on 1 or 10 dollar fares like you are using on several routes?
You don't make any money on those routes, but you bring in more passengers to your hub which raises the profits on the rest of the routes, (which if you get it right can offset your expenses from your "loss leading" routes). In the end a few airlines will hop off the route enabling prices to rise again to maximize profits
You can read more about "Loss Leaders" in real life business here http://en.wikipedia....iki/Loss_leader , and can apply the concepts to this game by simply replacing "store" with "Hub."
This technique can be seen in real life airlines from time to time with recent examples from Ryan Air's £1/€1 sale http://www.dancewith...air-tickets.asp to skybus' $10 seats for the first X number of seats http://www.journalno...s=1037645507703
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