Break Through Load Factor

If you start up a route, on route management it should show the percentage that the aircraft needs to be full for the flight to be profitable.

It’s a nice idea and could be done with a fairly simple equation. Perhaps this could be added to the load monitoring page aswell

Hi,

That would indeed be a handy tool.

In the mean time, the aircraft type evaluation page gives you an indication.

Enter the type of economy seat you are using,

enter your price (default plus or minus x%)

and then you can check the different profit margins with different load factors.

It is only an indication because

you probably have different types of seats in your planes

and because the cost of on-board service is not calculated.

Jan

I normally just check the price performance page on route management, subtract catering costs from ticket price and then multiply by number of seats installed to give me a total income. You could then divide the profit by seat price and that gives you the number of seats over the break even threshold. Subtract this number from the total number of seats installed and it gives you the break even point. Let’s face it, we’d rather have a pre calculated number generated than do it ourselves, just a handy labour saving feature. As for the aircraft evaluation tools seat profit determination and x% Im not entirely sure how it works or what it means.

Hi,

I can only repeat that I agree with you :)

One has to make a lot of estimated guesses when playing this game. Guessing and estimating is okay when you talk about passenger demand. No airline can exactly predict how many passengers will fly on a new route. But calculating the break-even point is not what the CEO does. As we don’t have staff to do this, an automated tool would be handy.

The aircraft evaluation tool calculates your profit for different load factors, based on the default price. If you sell your tickets for 10% more than the default price, change the price at the bottom of the page and press apply. You will get your profit margin for the different load factors.

But as I said before, the aircraft evaluation tool cannot handle different types of seats and doesn’t know how expensive your on-board service is. And I forgot to mention that the tool calculates the price, based on the default number of flight attendants. If you employ more stewardesses, staff cost will be higher than what the tool calculates.

The evaluation tool also makes a conservative guess when it calculates the number of flights you can perform per week. If you use African, you can probably squeeze an extra flight in your flight schedule. That lowers the leasing cost per flight. And if a return flight takes 11 hours or more, the tool will tell you that you can only schedule 14 flights a week and calculate the costs based on that one daily flight. In reality you will add a second - shorter- flight to that flight schedule. That too will lower the leasing cost per flight.

So the whole thing is far from accurate. It compares different aircraft on a given route and gives you an indication of profit and break-even point.

Jan

[font=“Trebuchet MS”][size=“3”]And also it doesn’t allow you to use different ages for different a/c compared which is pretty important when deciding which one you want to buy/use.[/size][/font]