8 replies to this topic

[waerth]

Hello,

I just started with this game in the O2 world as Somchai Airways and I am considering making Bangkok a hub.

But I can only find 2 things that would happen if I made it a hub:

Benefit:
Connecting pax ..... but they only pay half the ticket price

Disadvantage:
Gate prices double! And extra staff cost is incurred.

Now the disadvantage seems so big to me (in costs) that I do not see how the benefit will ever make up for it.

So what is the reason why people build a hub? As it only seems like a waste of money to me.

W

[waerth]

Ok so a hub makes sense in combination with a terminal. Now lets see what a terminal costs ...

added later:
Ouch that is bloody expensive (a terminal)

[ar157]

but money grows on trees in ae. of course, don't build a terminal at the beginning of the game, but it's quite easy to end up with very very deep pockets in ae and terminals are nothing in comparison to your bank account.

[dieseltu]

Could you discuss this further. Im not grasping how a hub is helpful. You have to schedule enough extra seats to let them connecting people fill the seats. And you lose income . Verses keeping the seats matching the route demand . And more income. Ive got a lot of terminals , and routes where the connecting passengers drop my income down a lot. By lowering my price . They get booted out. By paying passenges . And my revenue goes up. A lot up. How will giving them half price seats help , except to make this worse.

Ok I can also see the cheap terminal gates offsetting some hub cost. But I still dont see the advantage unless its a Prestige thing. Or its to expand faster. By making seats available. Or it ups passenger satisfaction. Which I could use.

[mxax-ai]

1) the connecting pax can make otherwise unprofitable routes profitable
2) the usually make you more money than reducing capacity to 100% lf all green
3) they can fill up the last few percent, when competition takes them away

[dieseltu]

Ok, So are the connecting passengers paying for two flights passengers. And I mean . Are they paying for the flights on both airplanes. So you double income. Or is the cost figured out real life. And spread amongst the flights involved.

[Nexus8]

Out of Nadi 1.8 mil demand a year. This is what hubs can allow. http://ae31.airline-...e3r5&player=333

[dieseltu]

Holy fuel leaks , Batman!! . What a pretty picture.

So I just opened a hub in O2 . Beijing PEK.. And theres 4 other players with hubs there. And to get a termoinal is over 100 million. i think I got hosed.

[ar157]

Well, terminals do cost more at the busier airports, just like the gate leases. Now hubs...if you're flying an inter island route with 2Y demand, and your smallest aircraft flying 1x weekly offers 6Y, the hub will help increase the load factor and make the route break even (hopefully)