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How to Start an Airline (Kitty's Advanced Tutorial)


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#41
EradicationGod

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Thnx for sharing ur powerfull yet simple formula ...Breakdanzkat



#42
AceX

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Hello, delighted to be a part of the team! :)

I do have some questions though, if you don't mind me asking.

 

1. Increasing Employee Wages will improve their job satisfaction and morale. How will it affect the profitability of my company exactly?

 

2. How can I analyse Route Profitability on different routes before I start using them? For example, some routes are expensive because of higher leasing costs, but then the demand for seats is also high. It is difficult to see that there are so many routes, but not being able to select the perfect one.

 

3. I saw that I can advertise my airline. So for example the demand for seats on a route is 15, will the demand rise after advertising?

 

4. Is the demand for tickets price elastic or price inelastic? If they are elastic, it's best to reduce ticket prices because that will increase revenue due to increased demand.

 

Woah, definitely a lot of questions. Feel free to skip some. Thanks! :D



#43
ar157

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1. Increasing Employee Wages will improve their job satisfaction and morale. How will it affect the profitability of my company exactly?

Not only job satisfaction and morale but also on time performance. As for profitability, well that depends how much you're paying them, though generally paying average wages won't result in your airline bleeding money.

 

 

2. How can I analyse Route Profitability on different routes before I start using them? For example, some routes are expensive because of higher leasing costs, but then the demand for seats is also high. It is difficult to see that there are so many routes, but not being able to select the perfect one.

Unfortunately you can't, obviously try and open the routes with minimal competition/seats on market but still has decent demand. You could run the numbers yourself though personally, I wouldn't bother as opening a route in ae and ensuring it has a decent load factor of 70%+ is practically guaranteed profitability for the route.

 

 

3. I saw that I can advertise my airline. So for example the demand for seats on a route is 15, will the demand rise after advertising?

Advertising has a very minimal effect on your airline for the amount of money you pay for it. If you have lots of money with a very high profit margin, then there's no problem with advertising, it just isn't worth the money which is why it is encouraged that airlines in their start-up phase should avoid advertising.

 

 

4. Is the demand for tickets price elastic or price inelastic? If they are elastic, it's best to reduce ticket prices because that will increase revenue due to increased demand.

Reduced ticket prices will indeed increase the amount of passengers on your flights and possibly increased revenue (depending on how much you lower them by). However in some cases you will have to lower prices drastically to see some effect. For example, if Airline A is flying from City Y to City Z offering economy class tickets for $299 and you are offering them at say $349 chances are your load factor will be somewhat lower (assuming there is more supply than demand) Lowering ticket prices to say $339 will do nothing to increase passengers, you'd have to match or undercut the competitor in order to see a difference. You've probably also noticed that when you lower prices enough, you will generate artificial demand, that is there are more O&D pax flying on the route compared to the actual demand.



#44
bAnderson

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Great tutorial. Any ideas on how NOT to get into debt?


Current Brands:

Aerostar Airlines

Quantum

Tropical Airlines

 

 

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#45
bcrath

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2 questions:

1)What is a reasonable utilization for your aircraft?

2)Why do you lease the gate before researching the route?It is a waste of money if you decide not to run the route.



#46
Gevans

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I just want this excellent post by Yuxi be seen one more time......

 

I personally disagree and would recommend ordering as many aircraft as you can as soon as possible and before opening any routes, because you cannot lease aircraft using negative cash but you can use negative cash to lease gates and pay route opening fees. If you lease those gates first, you will have less cash available to lease aircraft, which means slower income growth during the airline's most crucial phase. :P

 

Getting a good start in the first 2 or 3 months is very important.

 

Also the type of aircraft and it's fuel efficiency are also very important. 

A simple way to figure this out .........

 

- Cost of the aircraft per seat............divide the cost of the aircraft by the number of seats, the lower the figure the better.

- The fuel efficiency of the aircraft............divide the total fuel consumption of the aircraft by the number of seats, the lower the figure the better it is.

 

Remember, this is not in miles per gallon........this is rated in pounds of fuel per hour of flight time.

 

So if you have 2 aircraft with the same number of seats and consume the same amount of fuel per hour but one fly's at 300 knot's and the other fly's at 400 knot's then the faster aircraft would be more efficient.



#47
iloveflying24

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Can you help me get my airline back in the green? I have a BAE ATP, loaded up on business class and first class seats but not really close on economy seats. I'm in the green currently at just over 4k and have one aircraft on 4 routes.



#48
Gevans

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The ATP is a good aircraft for smaller - medium sized routes.

 

I never run it with first class seats.

Try a ratio of about 8 economy seats to 1 business and it's best used on routes 150 - 450 miles long.

And it's best if you have 20 or more flights per route.

Adjust your ticket prices till you get your highest price at about 100% capacity.

 

You can make over 150k daily profit and it's possible to make over 200k daily profit.



#49
Gevans

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?



#50
Gevans

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??



#51
iloveflying24

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Thanks Gervans. I restarted the airline and making just over $117k with 2 aircraft running at full speed and at no hours left. One aircraft is the ATP, other aircraft is the ATR 72-200. I have 10 routes going and the ATP is on 6 of those routes. My monthly gate costs are 114k. Any suggestions would be most appreciated.



#52
Tesla

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Run more ATP and ditch the 72, or the other way around. But not both

#53
tstols

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SO HELPFUL.

 

I would be fine for a year, then plummet from profit to 10 billion under. this helps so much. keep it up!  :lol:


Eos Airlines Owner/CEO. Not a member of an alliance.

 

 

CONCH REPUBLIC IS INDEPENDENT! (jk)  :lol:  :lol:  :lol:  :lol:  :lol: 


#54
Preston

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All new players should check this out so they don't start operating spamlines!



#55
mastacheifa118

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The wiki does not seem to load for me. And yes I know this was posted 6 years after the most recent post.



#56
Marb1

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The wiki does not seem to load for me. And yes I know this was posted 6 years after the most recent post.

Not even 2 years dude...

 

The Wiki was wiped.



#57
mastacheifa118

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Not even 2 years dude...

 

The Wiki was wiped.

Shoot.... I was only looking at the first page..... :P



#58
loveawake.ru

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Im being told my serial is invalid when I try and register it on the XWIS site. Any ideas?

#59
Mach 10

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I find BHX op cuz nobody uses it but it has the virtually the same range and Same runway lentgh.You can travel to captial cities with 3 airplanes and make half a mil DOP easily.



#60
Adam41krob

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Does anyone know how I can get my account back? Every time I start the game it goes to the beginning.




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