Hi,
What sort of overall operating margin should an airline like mine be getting? I would like to know if my current performance is roughly where it should be, or if I could be doing better (or worse, I guess)
Here it is: http://riem.airlinesim.aero/app/info/enterprises/6498?7&tab=0
I dont know your finances, so how should I answer your question? Could you please share your finances (income and balance statements) and I can take a look? I tried helping you from what I know.
From what I see with your 84% load factor and 3,200,000 passengers per week in a mixed range operation I would say about 600 million per week in profits. I checked your configurations and I see that you have very little business and many all economy planes, why? I generally go for 15 C class seats in A319 and 73G size, 25 C class seats in A320 and 738 size and 30 or 35 C class seats in A321 or 73J size. Business is where the big money comes from. In a high luxury operation I generally say 75 million in profits per 1 million seat kilometres flown. This is without counting interest and depreciation.
To compare with my US airline which transports 600,000 pax per week in a bit over 200 mostly factory new planes, flying a short haul dominated operation with 82% SLF. It makes around 50 million per week in profits at 30% margin. Although this is not a holding and just a joint venture with a US based partner with my holding being based in Indonesia.
I have similar aircraft and route mix (though I do not use anything smaller than 736/318) in my main company, and I have 40% net margin on Adjusted EBITDA.
I do have 50% more aircraft and offer 50% more seat kilometers than you do. Though I carry 2.3x more passengers. This means you are more heavily concentrated on long haul than I am (more pax kilometers per pax), and with the price system on Riem for long haul you should be able to make some really nice money there.The stats could be extrapolated from there for your operation. If you wish you can PM me and I can give you more detailed financial stats.
Thank you both reliably helpful people. I understand it cannot be exact without knowing my financial specifics, but from what you say I definitely should be earning more.
CBE I presume when you wrote Y you meant C? I am gradually moving my all-Y 739s to Y/C, but some of my regional routes don't have any C pax therefore I have a fair few CRJs all Y.
If I can be bothered I might private message you with some financial details for some further advice.
I definitely disagree with the profit numbers CBE suggested. As Riem quite different than most game worlds (only comparable to Ellinikon), you should probably go for advice given by players actually knowing about the special setup.
I’d rather say that 600 mil profit is almost impossible for even the largest airlines in Riem (and I know a few). There aren’t many airlines on the stock market on Riem and therefore showing actual numbers, but one very successful airline with almost maxed out flight numbers is. Using that as a comparison should give you a much more realistic view for Riem.
I definitely disagree with the profit numbers CBE suggested. As Riem quite different than most game worlds (only comparable to Ellinikon), you should probably go for advice given by players actually knowing about the special setup.
I’d rather say that 600 mil profit is almost impossible for even the largest airlines in Riem (and I know a few). There aren’t many airlines on the stock market on Riem and therefore showing actual numbers, but one very successful airline with almost maxed out flight numbers is. Using that as a comparison should give you a much more realistic view for Riem.
Thank you dear competitor.
That is somewhat reassuring, although looking at the airline you mentioned, I'm still could be doing better.