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regional airline biz model

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#1
lordvee

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all,

I started 2 different airlines operating with small (B1900c) aircrafts on a regional basis (250nm max), building a pretty fair amount of routes, however in both games i was not able to reach a break even ending up broke both times.

the second time i carefully picked up destination airport among the smallest possible, thus with small fees, but still not enough to break even. also i took care that gate/aircraft utilization was maximized so that all expenses were optimized.

i did not take a serious look at the reasons why this'd happen but it seemed to me that personnel's cost were killing me.

Has anyone experienced the same? I wonder if that should be somehow corrected?

#2
Feerspoir

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I'm currently operating a regional airline mostly out of Frankfurt Hahn and it's doing good, despite flying to such airports as Paris Orly or Amsterdam. But unlike you, I operate 50 seat turboprops. Maybe that's the minimum to be able to have a profitable company in this game?

#3
lordvee

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yeah, maybe that should be revised a bit so that even small feeders could be profitable... i will research better the cost overkill ;)

#4
ar157

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use a mix of 50 seaters props or jets (Saab 340 if your in the right time frame they're :awesome: ATRs and CRJ 200) and the smaller 19 seaters (B1900D, B200) If you need the capacity then you can use the E-Jets and the CRJ 900/1000.

#5
pseudoswede

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but it seemed to me that personnel's cost were killing me.


Are you paying them anywhere close to industry average? If so, you're paying them about 3 times too much.

#6
lordvee

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Are you paying them anywhere close to industry average? If so, you're paying them about 3 times too much.


actually yes, even a lil' more. shouldn't i?

#7
pseudoswede

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actually yes, even a lil' more. shouldn't i?


The average regional carrier pilot in the US (i.e., Colgan Air), makes about $28,000-30,000/yr, which is about $28/hr on AE.

#8
lordvee

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wow is that so... that is like peanuts. it sounds like too low though for piloting such a high tech vehicle

#9
pseudoswede

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It's a Beech 1900C, not an A380.

If people were paid $100,000/yr to fly tiny aircraft, don't you think more people would want to become pilots?

#10
lordvee

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i am cool with that but i guess that is pretty much the same wage that you get for driving a bus :D

#11
Moldova96

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Im making a healthy profit from running a regional airline, around 2 months ago new measures were introduced to reduct staffing levels for regional airlines so this helped limit past issues of all regional carrier being un-profitable. Regional airlines are not known for being hugely profitable as it is in the real world, but the game does need to work on reducing the huge wages in game.

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#12
M4matthew

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(i.e., Colgan Air), makes about $28,000-30,000/yr


That high? Wasn't the pilot of the Colgan Air disaster on $16,000 a year? ...or less than the average refuse collector?

#13
adityapratama

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You just have to tweak your payroll and IFS/IFE systems, I can even make a profit with helos before (though the profit is quiet.... tiny :P )

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#14
channy_thegreat

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or pay minimums.... not like that really hurts you at all. 

 

create a IFS package, cheapest items available w highest prices. will raise income by 1.5x original. 







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