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Why am I not making profit :/


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#1
Spacebuz

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I've opened airline after airline doing different tactics I heard about.

But I keep hitting minus and it never goes back up :/ So I'm forced to close down.

How I usually do this is I find any airport and has a cheep gate to pay for which has a decent demand and do routes to it. I lease about 8 small airplanes so I have plenty of hours and make profit quick enough.

I don't change the employee salaries because their moral will go down quick.

I do the two flight things also to increase rep, I don't do bonds.

I look at the finance and even I'm losing money even though I haven't leased airplanes for 2 months!

I find out I'm on -7 million.

I try and go at big airports to get the demands.

I don't know why It won't let me put a screen shot here but you understand the story above.

Where did I go wrong? and ask me questions to find out more :/

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#2
Bilal

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You could share the airline with me and I could see what the problem is :/

#3
Bilal

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9496 Enter this number in options under Shared Control

#4
bigbadcrusher

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Personally, I would lower the salaries to $7/hour for everyone. The morale will go down, there's no denying that, but it's cheaper to pay them very little and have the attrition, than to pay them the starting pay. In a brand new company, whether it be a restaurant, a grocery store, or an airline, is the CEO, CFO, or COO able to pay themselves $250/hour when they are brand new? Most of the time, they don't have the profit margins to afford such a thing. I'll be honest, I was hesitant as well to drop the salaries at first, but when I thought about it, nobody makes that much money in a start-up company, they get pay raises as margins increase. I wish you the best of luck with whatever path you take with your airlines. That's just my 2 cents on how to handle it.

#5
Spacebuz

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I've put saleries down a little, and got bonds up now.

So I'm on the + again :)

But in the longer term, how to make profit?

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#6
AirbusJunky

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My airline in O2, Singapore Airlines was about to go bankrupt, then I lowered all of the employees salaries to 7$/per hour. It lowered my payroll from 130million to only 20million. And then, I came back. Now, I am the biggest airline in Singapore.
Airbus is the best, way better than Boeing!

#7
Yuxi

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Make sure you use all your aircraft's available flying hours, minimize the number of aircraft families you operate in the beginning, and fly longer routes. Also, when starting a new airline, make sure to lease aircraft before spending money opening routes and leasing gates.

Cutting costs is one thing, but those are the main points you need to cover to get enough revenue to grow.

#8
Superman

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Flying into big airports will also cost you money due to they high monthly gate payments... So fly into secondary airports

#9
Yuxi

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Flying into big airports will also cost you money due to they high monthly gate payments... So fly into secondary airports


I find that unless the route is overcrowded (which is most of the time), the profit to be made at large airports still easily outweigh the gate costs if you're using your gates effectively. :P

#10
Spacebuz

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Ty for the help everyone ^_^

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#11
KINGXyro

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PROBLEM FIXED! JUST A STUPID ERROR BY ME :P



#12
Mr PAG

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I decreased

-Salary
-Operates on secondary airports with an A320-200

It earns roughly $1.2 million a month but still I'm loosing $2 million over all :(

Need help! #NewPlayer

Check your routes. For a start open ar routed with little or no competition as operating on routes with multiple airlines could hurt your profits badly.

PS:U just restarted a 4 year thrend. :0

Mr PAG 

      


#13
5280_Av8r

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Try checking your IFS, it could be that this is the reason you are losing money. If it is not making you any money, either get rid of it or make one that makes profit, just don't make a spammy one. Do this at least for the beginning until you're making enough to afford the loss. I know some good IFS that aren't spammy but make profit if you want them. You can also find them other places.



#14
Squarrel

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Do long routes!



#15
Michael.

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Do long routes!

No! They're far too inefficient by comparison to short haul and ultra short haul



#16
Captainantiles

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I run an airline that makes 15mil+ every half hour. Here's how i started

- Chose the plane with the best fuel efficiency and most passengers.

-Started in YEG Edmonton Int'l

-Opened a few different flights to YXX and to YYC as well as to Yellowknife.

- Did ok at this point.

- Increased my starter plane lease to a 10 year term

- Saved up until i could afford to start getting more of the same plane as my starter. (This keeps maintenance cossts down)

- Checked on my routes daily and made sure they were full of passengers.

- took out a few bonds to help keep my cash above negative

-Modeled the Ifs to make a profit of over $100 per passenger

-implemented basic IFE and set ads to 10 min intervals.

- At this point I was making around 1.5-2 mil every half hour.

Hope this helps. You can be profitable and do medium to major runs.






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