I am kind of stuck here as I have played for around 3 weeks, I got 8 planes and cannot grow bigger right now as I need to wait for my revenue to come after paying my lease in order to have money to get a new plane.
And the main problem is, a lot of my routes gradully faces more intense competiton. Some routes originally are only operated by my airline and other airlines started to invade in, and some routes the other competitors increased their frequency, causing the load factor fall dramatically.I know my rating in ORS is lower than my competitors, nut when a starter airline uses very low price to lure customers and other experienced players used connections to attract travellers, what should I do？ Should I lower the price？ Increase frequency？Improve my service profile？Quit the competition and open up new routes？
There are quite some airlines in Haneda and Japanese market at this point. I also see an experienced players playing in Japanese market i know competing with you at this point. Your competition will only become worse. You really need more connections and focus on one airport.
So thanks for everyone's help. I have regrouped some of the routes, but still constantly my originally less competitive routes have some experienced airlines invade in, and all my customers are being attracted out. I have maxed my service profile, but for seats configuration, I don't really want to change because it will greatly decrease the number of seats if I change, and hence my profit. Should I lease some smaller planes to do this routes?
For international routes, I am now trying but it seems it cannot even fill up half of my A320, and I wonder why...
Anyway, my main question is earning just 1M a week is good enough? I have now 11 aircarfts and I feel so slow to be able to expand. I want to lease some smaller aircarfts, but I already have 3 category of them, should I do so?
Not changing the seats (I don't know which seats you are flying with) seems not to be the best option. Yes, you will loose seats but your rating will raise. And with a better rating (in ORS) you will attract more passengers - and you can lift the prices to make even more money.
Domestic traffic in Japan should be hight enough not to start international flights so early. You still need more connections to fill international flights.
For those Embraer 170/175, the margin per route is around 10-17%
For my A320, around 35%-40%, but some of the lower load routes just 20 or even under 15%, I think I should cut those routes...
Is it normal? Because after playing 1 month, I have just just earned 4M more, and I cannot lease more planes with this kind of growth rate...
And I actually have only 1 international route (HND-TPE), it is half full, around 60pax, but if I changed to a smaller aircraft, can I still get that same amount of pax if also at the route is at the same time (meaning same amount of transfer pax)? Then I ca a get a full flight at least...
The margin per plane type is not interesting but your revenue margin. Earning 4 M within 4 weeks is not bad also - so you can lease 1-2 new planes now and in 1-2 weeks the next one. What do you expect?
Nobody can tell you if you can keep your transfer pax with a smaller plane. As said before, upgrading seats and service will help.
4 milion in a month is not great but it is a lot better than many others. That is less than what my first profitable airline CBE Airways made. Malaysian made about 10 million and IndoSky made about 80-100 million within the first month. This is the first weekend closing of IndoSky taken 20 hours after the weekend closing and remember that there are double salaries.
Japan is such an easy and high demand market. I have a friend who within 6 months had a fleet of 800 aircraft (over 50 747s). There is also a decent long haul market.
