5 replies to this topic

[EmilyNE99ST]

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?

[sound_guy0918]

Could be a lot of things...What are the biggest expense line items that are putting you in the red?

[EmilyNE99ST]

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?

[Giziar]

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.

[sound_guy0918]

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!

[Pineair]

You have too many aircraft types. You pay a large sum for each different aircraft type plus a much lower figure per aircraft. You need to restrict yourself to one of toe aircraft types Until you are fully established. I tend to not operate a second aircraft type until I have 10 of my initial aircraft in the fleet. Look at your maintenance costs and you will see whst I mean.