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Choose your Planes?

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#1
Guest_OilTycoon_*

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I have a suggestion obviously thats part question. Why when you have 2 planes on the same route does your profit decrease when you update the other plane? That's not very realistic, people don't get to choose their plane when they fly. Can you give me an explination? Thank you, this would be greatly appreciated.

#2
Guest_Nathaniel_*

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it is realistic though because you are diverting passengers to your other flight, and less demand is availalbe.. demand does not maintain constant and it will change with new routes... or else you would be able to have houndreds of routes on the same and make tons..

your suggestion/question would make it UNREALISTIC

#3
Guest_OilTycoon_*

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What your saying makes sense but explain to me how an airlines make the same amount of money when they add a new plane on that route.

#4
drv4truk

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You mean the way some airline have 5-7 aircraft at one frequency on the same route? Easy, they are driving their own ticket prices down by having multiple aircraft on the route. Its the same as having 5-6 different airlines on the route.

#5
Guest_Nathaniel_*

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its not realistic for the demand of your routes to stay the same with more than 1 route on the same route for an airline.

It is not realistic to always have the same demand if you have more people on the route.. which is what you said.

#6
Guest_OilTycoon_*

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ok thanks

#7
CaptKornDog

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Originally posted by Nathaniel
it is realistic though because you are diverting passengers to your other flight, and less demand is availalbe.. demand does not maintain constant and it will change with new routes... or else you would be able to have houndreds of routes on the same and make tons..

your suggestion/question would make it UNREALISTIC


Couldn't have said it better myself...economic principle of supply and demand - as supply goes up, past the equilibrium point, demand will lessen and lessen, creating a surplus (of seats in this case)...while if supply is low, with a market for the route in the first place, you'll generally have more PAX loads

#8
ziliu

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I think what OilTycoon wanted to say initially was that passengers can't sense how many planes a particular airline has on a route, and should not be able to choose which aircraft he/she will fly. In essence, if you have one planes on a route, and then add another with the same ticket price, the addition of the second aircraft could lower the load factor of the first, but the sum of the two load factors(assuming equal-sized planes) should be at least equal to the initial load factor, since you won't get less total passengers just because you add another aircraft with the same ticket price.

It is far from obvious how AE handles this, but it is a very interesting point to raise. Some load-factor algorithms I've seen (no pun Tump :P) don't really take these things into consideration.




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