I'm wondering if my net profit margin to date will be in the red for a long time at the beginning of the creation of my airline. Any suggestions?
Financial Concerns for my airline
#1
Posted 22 May 2014 - 06:00 PM
#2
Posted 22 May 2014 - 06:07 PM
Could be a lot of things...What are the biggest expense line items that are putting you in the red?
#3
Posted 22 May 2014 - 06:25 PM
Gate leases, aircraft leases, and aircraft maintenence. I think the problem is that I'm not bringing enough money in. Do I need to look for revenue else where from the cost of flight?
#4
Posted 22 May 2014 - 06:31 PM
Income of the first widebody in your airline is normally not enough to cover for the maintenance costs as the base maintenance costs for an airplane family are quite high. See if you can get a few more widebodies of the same family and employ them.
#5
Posted 22 May 2014 - 07:10 PM
As mentioned, consolidate your fleet and get as much utilization as you can out of your 747s as they are the most expensive to run...
Short "commuter" length flights are not as profitable....try longer flights....
Don't fly into expensive gates unless you can make the monthly lease charge back in 2 days of profit. 30:1 profit to lease fee is a good rule of thumb.
Good luck!
#6
Posted 22 May 2014 - 07:35 PM
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