doubt regarding profitability

Hi, Im a new member and unsure abt the game yet…

in the aircraft type evaluation, when it shows all the costs, am i right in thinking that staff wages are not included in them right?

lets take this scenario:

If i lease a Dash 8-400A to run on HYD-BOM route as a shuttle, with economy seats at 110% of the default price then it shows:

Aircraft type Flights per week Available seats Fuel Aircraft handling ATC Landing fees Maintenance Capital cost Crew Fixed costs total per seat 50% 60% 70% 80% 90% 100% Bombardier Dash8-Q400A 42.00 65 1,023 141 221 133 561 2,381 270 4,730 73 AS$ -1,139 (-29%) -354 (-7%) 319 (6%) 1,105 (17%) 1,778 (25%) 2,563 (32%)

Assuming it is 100% full, then this flight will give me a profit of 42*2563 per week = $107,646 ?

The lease per week is about 100,000 and then there is staff wages and also on board service that will eventually cost a bit.

So am i right in thinking that if i run this leased aircraft on this route for 42 times (and leave the aircraft idle at other times during the week), I won’t be making much profit?

Am i missing something here or is this right?

I started in the stapleton, (no routes yet), and planning to make my hub BLR or HYD (india)… anyone who is familiar with those aiports, can you advise me if its a good choice or not?

Thanks in advance

Sai

I know that’s a very unprofessional way to use the ATE but if you get positive numbers the plane can be flown profitable nearly this margin which is shown. Of course when you have around the same number of seats, also notice, when you have more classes you will have a higher margin (normally) than shown there while you have the same seats because you can just choose on class/one seat type. Hope was understandable. :D

in the route page, after bookings are done, when i check how profitable tht flight was, it says this:

[size="2"]Indirect costs[/size] [size="2"]Branch office[/size] [size="2"] 69 AS$ [/size] 0 AS$ [size="2"]Management[/size] [size="2"] 286 AS$ [/size] [size="2"]Maintenance[/size] [size="2"] 717 AS$ [/size] [size="2"]Crew[/size] [size="2"] 112 AS$ [/size] [size="2"]Leasing/Depreciation[/size] [size="2"] 488 AS$ [/size]

the "Leasing/depreciation" part, does it mean it is calculating the cost of leasing the plane and telling me how much profit i made, or is that additional to the weekly leasing costs?

The leasing/depreciation is a pro-rated portion of the leasing cost so you can see if you’re using your resources efficiently (so, no, it is not on top of the weekly number).

Hi,

the aircraft type evalutation tool only calculates the salaries of pilots and cabin crew. You are correct, it does not include the costs of your on-board service. And the leasing cost is an estimate. It shows the leasing cost per flight if you do the 14/28/… flights per week it has calculated.

The flight information shows you all the expenses, but they are not all paid at the same time…

  • fuel, catering, ATC and ground handling are paid staight away;

  • maintenance is paid when the maintenance is done;

  • your crew will be paid weekly, when your financial week closes;

  • and the lease will be paid when the weekly payment for that plane is due.

I don’t know if India is the best place to start. Air Bombai (Stapleton) is big, and because of its huge network it attracts many passengers. I think it won’t be easy, but if you play your cards well, your airline will survive. Apart from the local situation, an airport the size of BLR or HYD offers enough possibilities to operate a profitable airline.

Jan

Thanks to all three of you to clarify my doubts :) I guess i shall start at Dhaka then