Hi all,
I need some explenation of what i see in the Aircraft Type Evaluation screen.
For e.g. I have selected the route Athens ATH to Larnca LCA for aircraft Boeing 737-700 HGW (winglets).
Settings:
- Age: 2
- Class: Economy
- Seat: Standard
- Price factor: 100%
I need explanation of the following please:
- Capital cost... what is this? How is it calculated?
- Price per seat... i gather this is the minimum price for which I will cover all expenses. Correct?
- And then all the percentages (50%, 60%, 70%, 80%, 90%, 100%)...how are these prices calculated?
- And finally what does the price factor do in the settings area of this screen??
Many thanks.
Hi all,
I need some explenation of what i see in the Aircraft Type Evaluation screen.
For e.g. I have selected the route Athens ATH to Larnca LCA for aircraft Boeing 737-700 HGW (winglets).
Settings:
- Age: 2
- Class: Economy
- Seat: Standard
- Price factor: 100%
I need explanation of the following please:
- Capital cost... what is this? How is it calculated?
- Price per seat... i gather this is the minimum price for which I will cover all expenses. Correct?
- And then all the percentages (50%, 60%, 70%, 80%, 90%, 100%)...how are these prices calculated?
- And finally what does the price factor do in the settings area of this screen??
Many thanks.
Age: The age of your aircraft.
Class: Which class will you configure? (It depends on you.)
Seat: This will apply to your class configuration, which you choose what type of seat for that class.
Price factor: How much you charge? (100% is default price setting.)
The "50, 60, 70, 80, 90, 100%" are the Seat Load Factor (SLF) of each flight. I.e., DXB to AUH, you have 80% of seat filled with passengers, then your profit margin will be shown in the last column of the data.
Here goes…
-
Capital cost: usual leasing rate of the aircraft divided by the number of flights it can do (which you can see in the first or second column).
-
Price per seat: total cost divided by number of seats available for that flight.
-
The percentages are seat load factors. They show the amount of money you would (and margin -also in %s) for a given seat load factor.
-
Price factor at 100% will show you the margin and profits you will make at the default price setting. If you have a route that is working well, you will charge more. You can see this in price factor option - move it up and profits go up - and vice versa.
Hope that helps. All the best with your airline.
S
Here goes....
-
Capital cost: usual leasing rate of the aircraft divided by the number of flights it can do (which you can see in the first or second column).
-
Price per seat: total cost divided by number of seats available for that flight.
-
The percentages are seat load factors. They show the amount of money you would (and margin -also in %s) for a given seat load factor.
-
Price factor at 100% will show you the margin and profits you will make at the default price setting. If you have a route that is working well, you will charge more. You can see this in price factor option - move it up and profits go up - and vice versa.
Hope that helps. All the best with your airline.
S
Many thanks,
it helps a lot.
One question about the SLFs. And profit/loss it is calculated based on what price? On the price per seat which is calculated if you devide the total cost by the number of seats?
It is calculated on your price factor. If you cost per seat comes up $197 and default price is $205, you will make $8 a seat on a price factor of 100%. And so on… The profit and margins you see is the $8 times by the number of seats available for that flight.
Having said that, use it more as a tool of comparison as opposed to cash flow and profit prediction. Add a few planes to the list that you think you can afford and are capable of the routes, see which one has the lowest cost per seat. It’s tool does not take into account more that one class on the same aircraft, so it will never be exactly accurate either. Nor does it take into account the different leasing prices available now, it uses the default leasing rate.