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#1
mike1156

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Hi all,

I got a big problem that a big scale airline from my home country keeps blocking my routes profitability. I keeps avoid direct competition with him and just focused on 2nd line airport, but he just follow my step and I am sure he wants me to go bankrupt. What can I do?

I am already using a strategy that keep leaving the destination when he arrives, and open I new one. But I don’t think I can survive by this long. Since I only got 3 planes but he gots 100 to 200 times of mines,

Thank you

#2
Airboss777

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First thing to check: this other airline is not me. Check. Cool.

 

Second thing; don't take competition personally. A lot of players, myself included, often just systematically add routes to their network.  For example, you could do a "browse" of all airports within 1,000 miles of Hong kong, and then just start at the top of the list and work your way down. They're not necessarily chasing you or continually pushing you specifically. They're just executing their own strategy and don't really care who's already on those routes. I doubt they're thinking about you as much as you're thinking about them.

 

Third thing; identify your other problem. You mentioned it yourself - you've only got 3 planes. You need more. Lots more.

 

My advice: Don't be afraid, and don't run away whenever he turns up. Stay on your routes & push back. Keep expanding your own fleet so reduced margins are offset by increasing spread.

 

If you would like me to hop in the jump seat & take a look under the hood, my player number is 22738. You can add me in the "share control" panel. I don't have a lot of spare time but I can easily get your wings straight & level.



#3
mike1156

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Thank you for your advice. I would make a try on these.



#4
Zacca

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that's capitalism my boy


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#5
ValdemarVV

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One thing that helps me a lot is utilizing your slots as much as possible. Say you're flying from LHR to CDG and LHR to MAN, I'd also add a flight from MAN - CDG (of course you can't do this if there are political restrictions).I also think if it's possible to use smaller underutilized airports with little competition. Also I find on AE flights that are close to the max range of the plane are much more profitable than shorter flights (less time spent on the ground turning the plane around). Hope this helps :)



#6
KJS607

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  1. Penetration pricing
  2. Contract and reduce overheads
  3. Fight back hard and hit them on home bases

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#7
mike1156

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May I know how to penetrate pricing?



#8
mike1156

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Btw, I found that i can charge higher fee than my competitor, what is the reason behind? 



#9
Airboss777

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Magic



#10
mike1156

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Just wana know do my airline grow rate normal?

I opened my airline for around a week, only with 6 aircraft in total.

And earning around 1,300,000 DOP

 

Will it be too slow? If yes what shall i do?

 

Thank you



#11
RehanTheBlock

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If your so worried about making money, then here is tiny trick I have, it won't help too much but it does make it easier for you

 

reduce your price by $7-9 dollars, and you competition will try to lower it by $10, keep doing this  every time your competitor lowers the price of there tickets and for a longer period of time you'll be able to operate to route profitably.

just a little trick.



#12
KJS607

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May I know how to penetrate?

 

It's as dirty as it sounds.

 

It's a case of extremely undercutting hard competition in markets you wish to penetrate when entering said market to gain market share quickly and effectively.


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