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Newbie To AE With Questions


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#1
Arthur Simondet

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Hello forum, I started AE this weekend and so far I can't say I'm doing a terrible job however I do have some questions.

I'm not sure to what extent you can see information about my airline however I'll go ahead and ask what I have to ask anyways.

JetSuite is a cross-continental airline flying out of Austin, Texas and servicing all major cities across the United States including Charlotte, Las Vegas, and more. We currently have $7.142 million cash. We are operating one aircraft and are currently specializing in small hops across the southern United States until we can build a fleet. We have a total of 16 destinations at the moment.

What are ways that I can minimize expenses because as of now we have $469,000 in expenses YTD and only $112,000 in total revenue. Since we are focusing on small hops to smaller airports nearby the gates remain relatively cheap other than our HQ (AUS). All employees are being paid fairly but not too much.

Any recommendations?

#2
Arthur Simondet

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May I also add that a full month hasn't yet occurred so I am worried that maintenance will really take a chunk out of us at the beginning of the new month.

#3
Will101

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i would take out 1/2 bonds and lease 1/2 more of your starting aircraft and really focus on getting profits at airports.

#4
El Cobrador

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Here are a few ideas that have worked for me. Some of these can be especially helpful in the beginning. I don't always use all of the them every time, but here they are for consideration:
  • Point-to-point, no hub and spoke; hubs can be costly, especially in the beginning when funds are low.
  • Fly to secondary airports, where costs may be lower
  • Flights to airports which have limited or no service from mainline carriers
  • Limited or no IFE/IFS, at least in the beginning
  • One type of aircraft, or at least as few different types as possible. This helps keep maintenance costs down.
  • High aircraft productivity--get as much use out of each plane as possible.
Hopefully these will be of help to you. Have fun!

#5
ar157

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ok looking at your airline, don't do 1x weekly flights, they're just wasting your money through gate leasing. also hub and spoke model is fine, as long as you don't actually open up a hub early on :P

#6
pseudoswede

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ok looking at your airline, don't do 1x weekly flights, they're just wasting your money through gate leasing. also hub and spoke model is fine, as long as you don't actually open up a hub early on :P


1x weekly is not a waste of money so long as you have aircraft capacity to justify only flying 1x weekly. That said, the demand seems too small to justify flying to some of these airports without hub traffic.

#7
ar157

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yes but its 1x weekly using a B1900 :/ if he's properly matching demand, he's flying places with like 3Y demand




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