Hey guys,
So i am struggling now that the AGEX value is so low.
I am losing customers and lowering prices at a point that im only breaking even but still need to compete with other airlines.
What are your strategy in these tough times, please help me out!
thnx guys
Do not lower prices too much, it will not help you. Reduce your flights, cancel the most expensive lease contracts and use smaller planes.
Downgrading planes can be a good idea, or even cancelling some empty flights to resume in high AGEX times. Usually planes become available for lease at cheaper rates, so take advantage of this to switch your fleet to lower leases that you can keep when the AGEX rises.
A good way is to exchange expensive leasing contracts with cheaper ones.
What are your strategy in these tough times, please help me out!
Adjusting the capacities is one of many tools IMO. Such a reduction is not automatically related with reduced frequencies - with the same number of flights and fewer seats per flight. At some of my companies, I am changing the seating-configurations to lower overall-capacity (despite the fact that these configurations tend to be unrealistic in real world) but at AS it´s possible to generate enough money with fewer seats.