I have been trying to create a regional airline. I have a hub at JFK and another at ATL.
Both airports have 50 seater planes and fly very short regional routes, basically only to neighboring states.
JFK: ~175 daily departures
ATL: ~125 daily departures
In the last month, I pulled in a net income of only $7 million on $110 million revenue. Roughly 6%. Whereas it is normally about a 30-40% margin for my last airlines, using mainline a/c.
Now I realize using smaller airplanes means more flights and more gates; I am also aware JFK and ATL are expensive gates. However, the need to use those airports for my model exists because I need to demand to the secondary airports I serve.
To help regional airlines, I think changing the landing fees and potentially gate leasing fees to a variable system based on seat count would be ideal. Landing/airports fees at least are indeed done like this in the real world.
For instance:
0-80 seats: 30%
80-150 seats: 50%
150-275: seats: 75%
275+ seats: 100% landing and gate fee costs
It would allow airlines like myself to actually work. There is no way under the current AE that a regional airline can work.
As is, I pay all my employees $7/hr, 0% staff extras and a scam IFS and IFE that is bringing in 45m of my 110m. Without those scam programs, I am running in the red by 40m/month, probably -50/55m if I paid my employees a real wage.
I am not one who enters worlds to scam the leasing system, horde planes to try and finish first. I simply pick a cool thing to do and try and build it. The idea that I basically have to cheat the system with the IFE/IFS in order to survive is insane.
Something needs to be done to help the regional airline model in AE.