I select a route, add a few different aircraft and generate the comparison.
How is the capital cost column expressed? Per flight or per week?
Also, in the % columns on the right, 50% up to 100%, can someone explain what the figures mean in each box. What does this represent. Is there an explanation of this online somewhere? As an example in one box under the 80% column for a particular air craft it has "827 9%". First what does the 80% column header mean? Then what does the "827 9%" mean?
Every value is calculated per flight. The capital cost column represents the aircraft depreciation per week (when the aircraft is purchased) divided by the calculated number of flights.
The percentage volumes give the profit (827) and profit margin (9%) at a specific load factor (80%).
Every value is calculated per flight. The capital cost column represents the aircraft depreciation per week (when the aircraft is purchased) divided by the calculated number of flights.
Er, no, it's simply the weekly leasing fee divided by the calculated number of flights per week. Depreciation has nothing to do with it.
@ Blutarsky: this tool calculates that if you lease the aircraft at full price, do that number of flights per week, use those seats (or the type you specify) and sell tickets at standard price (or the price you specify), then that's the profit/loss you will get when the airplane is 50% full, 60% full, 70& full, 80% full, 90% full and 100% full.
So if the 80% column shows 827 (9%), it means that under the specified conditions, if that flight is 80% full you should have a profit of $827, which is 9% above the flight cost. Do take these numbers with a pinch of salt, however:
- You will often get the planes at a cheaper rate if bought second hand.
- You will almost certainly be able to do more flights than specified (thus lower capital cost).
- Your ticket prices will be changing all the time.
- You will likely be offering more than one class (at least Economy and Business), each with different seats and ticket prices.
- etc.
So use them as a general comparison between different planes, but don't expect to be getting the stated profit margins.