I have a question regarding the evaluation tool. When trying to figure out which airplane is most appropriate for a specific route, I’m always stuck with this question - let’s say I compare Q400 and CRJ 900:
Type________Flights per week________margin at 100% load
How should I interpret these figures?
a ) The margin of Q400 is higher so this airplane is more suitable for this route.
b ) The margin of CRJ 900 per flight is lower, but it can make more flights per week, which, calculated to the same number of flights, makes more profit.
To say it differently, is the number of flights per week calculated in the final margin or not? Which of the interpretations (a or b ) is correct?
EXACTLY the same question I came to ask but when I checked "new content" I saw your post…
Success with your airline!
The margin should represent the margin for each individual flight leg.
In other words, the number of flights is not a part of the calculation, meaning option b ) is correct. Right?
There you go. Nevertheless bear in mind that margin does not mean that you are going to make more or less profit in absolute terms: it is just a percentage. (e.g. 23% of 1000 are 230 and 26% of 900 are 234).
The performance tool calculates your margin per flight, not the profit, It’s figures are only valid if you would schedule the very leg for which you calculated as many times as it is possible.
ups… write something just before the previous answer…
So it is taken into account… or I’m just not getting it?
the number of flights per week is calculated in the final margin. The evaluation tool keeps an average maintenance contractor in mind, calculates how many flights you can perform per day, and then calculates the leasing cost per flight.
This becomes very important when one plane can perform one daily return flight (14 flights per week) and another plane can perform two daily flights (28 flights per week). According to the aircraft evaluation tool, the first aircraft will be much less profitable because it has a very high leasing cost per flight. But with an efficient maintenance contractor you can also perform two daily flights. And if you can only do one flight, you will add a second flight to a destination that is closer. Nobody let’s a plane fly 11 hours per day, and then leaves it on the ground for 13 hours… except the aircraft evaluation tool
If you want to compare aircraft, find a route where both aircraft can perform the same number of flights. Use a distance that is as close as possible to the route you really plan to fly, because fuel consumption is not always linear.
But keep in mind that, with the same seats and on-board service, the CRJ will give you a higher ORS rating than the Dash. If you want the same overall rating, you will have to lower your price. And that means a lower profit margin.