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why my airline was losing money??


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#1
Ghiby

Ghiby

    Founder Ameristar Airways

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hi all,

 

I'm a long inactive, but returning player, trying my hand again at this simulation

 

I just started my 1st airline after returning, I had only one default plane B737-800 that's now sized by lessor for non payment

 

Revenue around $9 Mil per month

I had one route in the US, west coast from PDX to LAX making around $310 k per day, so in theory, on average around $9 Mil per game month

 

Expenses around $8 Mil per month

I had gates just at PDX and LAX about 1.8 Mil per month

lease to the plane about $4.8 Mil per month

maintenance about 1 Mil per month (if I remember correctly)

 

so, in theory I should have around $1 Mil of profit per month, yet I was constantly bleeding money, and not sure why, which is why I'm asking here, what was wrong?

 

I've closed the airline, so I don't have exact data anymore, but I was staring at the balance sheet every day and those were the round up numbers as I've posted it above

 

if I did something wrong, what is it?

 


*** Sky is the limit ***

#2
Aviator48

Aviator48

    Empire Airliner

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Hard to tell without seeing it firsthand. Could be multiple costs unaccounted for like HR, gates, fuel/maintenance, leasing, etc. Just based off how I usually start though, I usually do multiple things to immediately drop costs such as lower salaries, return unused gates (you only need 1-2 but get 5 when you start), max out frequency of an aircraft, add profitable IFS, and fly to cheaper airports with lower demand (LAX is pretty expensive to begin at IMO). Then you slowly build profit, lease an aircraft, rinse and repeat until you have a system going. There are plenty of other things you can do as well but hopefully some of this helps for your next airline!

AE is the best.

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#3
SUJETO

SUJETO

    Proud Virtual Airliner since 1989

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Hi Ghiby
You started a extremely hard difficulty start up.
 
Supporting words of  Aviator48 . And remarking: there are 3 main things that are draining all your money:

  • Monthly maintenance its very high for operation of 1 aircraft. 737-800 could be nice. For me a fleet of 10 aircraft model type are fair to cover the model maintenance base cost. The game have a lot of numbers to get lost. In the plane page you could check how are going the (individual) plane finance. But this its only a part of expenses.  Example: Boeing 737 Classic (Base Cost) $3,275,000
  • Leasing new most modern planes. For situations of the aircraft industry. New planes are very expensive than older models. So i strongly recommend you to check the market for second hand, older; similar models. For starting. Later when you have a satisfactory profit you can sell them and buy your most wanted plane. As example, Buying the airbus NEOs its not a New Engine Option for me, because are so New  Expensive Option. That older models fulfill my profit demands.
  • Big airports arent good for a easy starting. Because gate lease are very expensive. Big airplanes could easy cover this value.

As you could imagine. Starting humble in a secondary airport with a 10 older planes, exploited staff. Could give you a starting hand of money. A path to be a strong airline. I hope with months. :1st:  I recommend you try again.


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Carlos "SUJETO" Vargas Sánchez.





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