Also it might be worth looking at replacing turboprops with regional jets. Turboprops are far slower, and passengers dislike them compared to jets. If you check the ORS on some routes where you don't need a turboprop (ATH-CHQ) you don't even appear on the first page as your competitors are using jets
Also it might be worth looking at replacing turboprops with regional jets. Turboprops are far slower, and passengers dislike them compared to jets. If you check the ORS on some routes where you don't need a turboprop (ATH-CHQ) you don't even appear on the first page as your competitors are using jets
Not the best example. Although I'm not on the first page, my flights are fully booked.
I never had really got into problems due to low AGEX. But I usually don't hub at the megaaiports and have thousands of weekly flight. I'm very strict with my waves so 99% of my flights depart/arrive in banks. If that means I have planes at 300% maintenance, so be it. This strategy probably doesn't work as great in very competitive markets like LHR, PEK or JFK because of competition. But I usually work out less crowded hubs. My hubs are usually places like JNB, MEX, HEL, DME and now DAC.
Edit: Off course I do see some drop in demand. But usually the margin just drops from 20-25% to 13-18% or something like that.
Not the best example. Although I'm not on the first page, my flights are fully booked.
So if they are fully booked why not upgrade them?
I can't see my airlines surviving much longer with this low AGEX.
How can I protect from going bankrupt? Any suggestions?
While other replies were probably more helpful in giving you detailed advice, I don't understand that question in general, because it's pretty easy: Restructure your airline! That's what all managers have to do in tough economic times.
cancel all negativ flights...
This could be the worst thing you could do to your airline.
Don’t forget that every internal connection buys at least two tickets.
A flight itself might be negative, but still could contribute to an overall positive margin.
Always check the ratio of connecting pax!
I'm not quite sure i can survive with 650... Kaitak has 709 right now, and it's only going down.
Sorry I didn't see the post previously.
I would streamline everything and change my fleet to max 3 categories of brand new planes as the margins are much greater for brand new planes and as long as you can afford them, I dont see why having old planes. Old planes are good for expanding quickly but new planes are much more solid financially (im going to get hate for saying this). I would also streamline my network and see which hubs dont work and focus on a couple of hubs and have some very big hubs instead of more smaller ones.
This could be the worst thing you could do to your airline.
Don’t forget that every internal connection buys at least two tickets.
A flight itself might be negative, but still could contribute to an overall positive margin.
Always check the ratio of connecting pax!
Well said AK. I never cancel a negative flight, because they contribute passengers to other flights. So far it worked and I hope AGEX index will pick up again. This past few days, the index has been up by 3 points to 662. Still low I guess but at least it's an improvement :)