8 replies to this topic

[JimBob1]

I own Pan Am in the newest small world......S3-A

Pan Am is #2 ranked but is leading the map in nearly every category......has been for most of this early map, where only about 5 months in.

 

What I don't understand is why Pan Am isn't #1 in valuation.

 

Pan Am fly's more miles, has nearly 5 times the passenger load, 60% more aircraft, more wide body aircraft, connects more than twice the cities, has a higher PR rating and has several times as many flights.

 

Both airlines have been buying aircraft and I think we have similar amounts of aircraft we own.

 

But Pan Am owns 8 Terminals and Hubs investing several hundred million doing so.......several times what the #1 airline has spent on buying aircraft.

 

The #1 airline owns no Terminals or Hubs.

 

 

So, the question is......what determines the value of an airline ?

[SkyMandalorian]

valuation= value of terminals + value of owned aircraft + current money + deposits(ordered planes)

 

leased aircraft aren't counted

[JimBob1]

If that were true then airlines that have no terminals and have purchased no aircraft ( only leased ) would only have the same value as the cash they have.

[SkyMandalorian]

Basically yes. You can view  your valuation by details by going to here.

[JimBob1]

That graph only shows the value as it has increased over time, does not break down how that value is determined.

 

Value of an airline is obviously determined by a lot more than terminals and aircraft owned and cash on hand......the amount of airlines in any given map that own no terminals or aircraft yet can have a substantial value is proof of that.

[Book Siberia]

Valuation basically goes up by the amount of dop each day.  

 

If you turn leased gates into terminals, then the lease amounts - which appear as an expense (which drags your dop down some) - are eliminated and replaced by the value of the terminal as an asset.

 

Over time,if one airline is bringing in more per day on average than the other airline is, he will eventually catch up and pass the other airline with the lesser dop on average.  Same deal occurs regarding the lease vs ownership of planes.

 

Assuming that every plane that you have 100% deployed on routes are all profitable, then dop is increased by the net profit of all planes summed together.   You can directly calculate what each airline's dop currently is by subtracting today's total valuation from tomorrow's total valuation - simply open the rankings page for the current day in one browser tab, and then when the game changes to the next day, open the rankings page in another browser tab and compare the airline's total valuations and do the math.  If your dop is less than his, you lose ground; if your dop is greater, then you close the gap between your respective valuations as the days pass.

 

Bear in mind of course that neither of you will be standing still, assuming that both you and the other airine(s) are putting up routes.

[Michael.]

That graph only shows the value as it has increased over time, does not break down how that value is determined.

 

Value of an airline is obviously determined by a lot more than terminals and aircraft owned and cash on hand......the amount of airlines in any given map that own no terminals or aircraft yet can have a substantial value is proof of that.

That person most likely overcharges customers a lot. I often find myself wondering how I'm not on top even when I'm so much bigger than anyone else. Sooner or later people will compete on the routes he is overcharging on and he won't be able to continue with the strategy and your physical dominance will prevail

[Abhorsen]

Value of an airline is obviously determined by a lot more than terminals and aircraft owned and cash on hand

 

That's exactly how it's determined. If they're not using their money for terminals or to purchase aircraft outright, they probably just have a lot of cash on hand, hence the high value

 

That person most likely overcharges customers a lot. I often find myself wondering how I'm not on top even when I'm so much bigger than anyone else. Sooner or later people will compete on the routes he is overcharging on and he won't be able to continue with the strategy and your physical dominance will prevail

 

This is how some airlines seem to have a disproportionately high value early on in the game when you compare value to daily pax/distance. As Michael says, it will even out in the end as competition gets bigger. I'm currently top of R6 but the airline in second was on top for a while for exactly that reason, even though I had far more daily pax and distance.

[davedave]

Airline value at any given time is easy to calculate. What's harder to work out are the long-term effects on value of leasing over depreciation, terminals instead of gates, etc. Some ways give more money early on but cost more in the long run, others do the opposite - and of course until you're so rich cash on hand is effectively infinite, having the extra cash in the short term can allow you to grow faster.

 

Aside from looking at DOP, also note how much someone's value goes down the day staff are paid. If they're paying much less than you, that can make a huge difference.