19 replies to this topic

[spikeyazn]

Ever since the new 3.1 update, I found that it is hard to start a new airline. My main airline is doing just fine but I was forced to close my second one due to expenses. I've tried to start it again several times in several different countries but I always end up with a net loss. Currently I am flying two planes from Seoul with a DOP of $226,876. My monthly revenue from ticket sales is around $10,561,344 but I still end up with a net loss of around $-1,163,544. If anyone can give me a few tips, I would appreciate it. Thanks in advance!

[rsfjustin]

One of the strategies I like to do is to start an airline and find airports that are medium sized that aren't too occupied. In the US these may include Ontario, California or Austin, Texas. You can build a big domestic network in the US. However, it does take more time to do the research in order to find these airports. Do not assume that a JFK - LHR route will make much profit as it will be saturated by many wide bodies.

In addition, try to keep a cash reserve even if it means to slow down your expansion plans. I am able to add 20 Airbus A319's into my fleet with ease if I lease them. However, if my hub gets taken by another dude that likes to flood routes with seats. Then I'll hold off on expansions until I can situate myself on a more stable financial platform. When possible, try to purchase long haul aircrafts as they may sometimes add as much as $200,000 to your daily income if positioned correctly.

All in all, the biggest strategy is to just find smaller airports that don't have much activity and exploit it.

[spikeyazn]

Thanks for the tips! The only problem right now is that I can't find a way to make a profit. The current routes I'm flying are all in demand with a lot of seats still not being filled and little competition. Still I end up with a net loss every month.

[Royen]

Thanks for the tips! The only problem right now is that I can't find a way to make a profit. The current routes I'm flying are all in demand with a lot of seats still not being filled and little competition. Still I end up with a net loss every month.

Hey spikeyazn,

I think why you aren't making a profit is because you have to pay all your employees. Since the update, paying the employees actually worked, before it didn't, so this means all the money you were making is gone with paying employees. I had the same trouble with Royen Airlines. I was losing millions a month, but I changed the payroll so now I am making profit. I hope this helps, and you get you finances in the green zone!

Royen Airlines

[spikeyazn]

Hey spikeyazn,

I think why you aren't making a profit is because you have to pay all your employees. Since the update, paying the employees actually worked, before it didn't, so this means all the money you were making is gone with paying employees. I had the same trouble with Royen Airlines. I was losing millions a month, but I changed the payroll so now I am making profit. I hope this helps, and you get you finances in the green zone!

Royen Airlines

That's what I figured too. How much upi did cut from their salaries?

[txaggie]

Welcome to the airline industry. Its been turning billionaires into millionaires for decades.

[Royen]

thats the nice way of putting it. I lost my small regional airline based in the UK to the update, it was to late to save it

The update made losses I think to all airlines. I went from a billion down into the millions.

Royen Airlines

[Yuxi]

The update made losses I think to all airlines. I went from a billion down into the millions.

Royen Airlines

Real life airlines tend to have the same habit

[Royen]

Real life airlines tend to have the same habit

Very much so!

[spikeyazn]

Real life airlines tend to have the same habit

My bigger airline weathered through the storm and is doing perfectly fine. RIP my smaller airline.

[Royen]

My bigger airline weathered through the storm and is doing perfectly fine. RIP my smaller airline.

[spikeyazn]

I have a quick question, is there anyway to cut down employee training? I honestly don't know what training they're getting every month.

[Yuxi]

I have a quick question, is there anyway to cut down employee training? I honestly don't know what training they're getting every month.

Every employee you hire incurs a training cost. You hire employees every time you expand your operations. Also, every month some employees leave or retire through attrition (low morale = high attrition rate), so some new employees have to be hired to replace them.

[sviridovt]

oddly enough my profits are growing rapidly right now, I dont know why. I dont start as many new routes anymore, and dont raise my prices, but I went up 20 millions in DOP overnight (IRL) (not that I am complaining)

anyways, on topic. try to cut down some costs because one advantage of joining in the beginning, is that everyone is in the same boat meaning everyone cuts down costs

[spikeyazn]

I see. Thanks for the answer, I'll find some way to cut down costs.

[Royen]

oddly enough my profits are growing rapidly right now, I dont know why. I dont start as many new routes anymore, and dont raise my prices, but I went up 20 millions in DOP overnight (IRL) (not that I am complaining)

anyways, on topic. try to cut down some costs because one advantage of joining in the beginning, is that everyone is in the same boat meaning everyone cuts down costs

LUCKY!

[Yuxi]

anyways, on topic. try to cut down some costs because one advantage of joining in the beginning, is that everyone is in the same boat meaning everyone cuts down costs

I've played in the current theme game from the beginning and have not felt a need to cut costs. In fact, with default employee settings, my cash is growing exponentially just like it did in previous games. Average salaries have gone up by $1, not down at all.

[spikeyazn]

I've played in the current theme game from the beginning and have not felt a need to cut costs. In fact, with default employee settings, my cash is growing exponentially just like it did in previous games. Average salaries have gone up by $1, not down at all.

Lucky you.

I've been steadily cutting down salaries with my new airline and I managed to get the loss down a little. Still I'm afraid of getting another aircraft and opening more routes because I fear that the lease payments, maintenance fees, employ training/salary, taxes, and fuel prices would kill me.

[Yuxi]

Lucky you.

I've been steadily cutting down salaries with my new airline and I managed to get the loss down a little. Still I'm afraid of getting another aircraft and opening more routes because I fear that the lease payments, maintenance fees, employ training/salary, taxes, and fuel prices would kill me.

Holding at 1-2 aircraft is not really sustainable - you need to break through, even if you lease 1 or 2 A320s or 737s at a time, and open more (profitable) routes with good aircraft

[spikeyazn]

Break through?