Terminal Service Strategy

Now this is crazy, and it isn't fool-proof...but could it work? (just curious)

Let's say you lease 2 turbo-prop planes (eg. 2 Dash Q400a's)

and you have all flights come either into/out of your hub airport.

Then (the crazy part) you build a terminal with 5000 spaces-no jetways (again using q400a flight stats)

and then you don't have to pay any AS ground handiling, you could expand the terminal using profits.

What do you think? Would it even work?

You would be saving roughly £45000-£55000 per week by using this strategy, upkeep would be roughly £3000 for the terminal

Hi SS,

It could work but your profit margin would be very very low. Some numbers...

A 5* terminal no jetways, 5000 passenger units = 6,751,350 You say you will save a max 55,000 per week (have you included staff cost in that calculation) so it will take 122 weeks to earn back the original money.

Now as a comparison if you were to spend that same money on aircraft (using numbers of a new airline I've just started up on another gameworld)...

4,747,760 got me 10 aircraft (ok not the best in world but hey its a new airline). Profit after taking lease payments out = 1,475,291. Time to make back my money...under 4 weeks.

So I'm not saying your stratergy won't work, I'm just saying theres a big difference between 122 weeks and 4 weeks....

Ian

I know, I wouldn't say small profit margin, just the time it would take to pay back.

On the other hand though I suppose it's a very safe way of playing the game-not a big risk. Y'know I'll run a test with this on another gameworld for 2 weeks and see how it goes.

It's a small enough profit margin that you would need only 5 daily flights a week that have bad loads (less than 50%) and your profit is wiped out. The other thing about a terminal is you cannot get rid of it if all is going wrong for the same money you put it. Aircraft are different as you can get your deposit back

50% Load? That's a rare thing in my airline...

930

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^

Then your stratergy is not working at all. AS is a hub centric game working best on connections. If you only have two aircraft then there are very few connection possibilities.

At a guess your weekly loss is greater than 55000AS?

Well, give or take a couple of thousands, it's usually 0.6 million

This isn't with the terminal strategy though, the idea above is purely fiction.

AS is hubcentric because the data that they use to drive everything is essentially mirrored off of real life data.

This means that because Delta runs hubs in Atlanta and SLC in real life, Atlanta and SLC in AS will have WAY more traffic than they should in any way, shape or form. What this means is that your job in this game is not actually to connect people, it's to emulate whatever real world routes exist as best you can (or at least better than everyone else). You don't have to operate a hub in Atlanta, but a LOT of people going through your hub will want to connect there for absolutely no reason, other than that real airlines use it as a hub.

This is sort of flawed, IMO, as we saw how Southwest completely ditched the hubcentric model in real life and nearly began to eat United's and Delta's lunches.

Understanding that this is how AS works is even more important for international routes. For instance, in real life there is not a single direct flight between LGA and LHR. They all connect through Boston, IAD and Atlanta. This means that there is NO demand for an LGA-LHR route in AS (essentially), even though any sane person would think there should be.

Don't think that "realistic economic model" means that it simulates an economy. It doesn't. AS emulates actual statistical data on behaviors of passengers in real life under the mistaken assumption that it is 100% reflective upon the passengers themselves, and 0% reflective upon the available choices in real life.

EDIT:

For reference, here are some real life hubs in the US:

United: ORD, SFO (asian international), DEN, IAH (for the old Continental traffic)

Alaskan: SEA, DEN, PDX

Delta: ATL, SLC, JFK (europe international)

Just off the top of my head. There are more, and IRL they have their own focuses, and that impacts what routes are actually reasonable in AS.

For instance, in real life there is not a single direct flight between LGA and LHR. They all connect through Boston, IAD and Atlanta. This means that there is NO demand for an LGA-LHR route in AS (essentially), even though any sane person would think there should be.

Sorry, but this is not correct. In AirlineSim is a demand between LGA and LHR - enough to fill a 747 per day. But there are a lot of offers for connection flights too, so not everyone of the demand is maybe booking the direct flight. On the other hand you may offer feeder flights to/from LGA to smaler airport around and transport the passenger from there to LHR.

Sorry, but this is not correct. In AirlineSim is a demand between LGA and LHR - enough to fill a 747 per day. But there are a lot of offers for connection flights too, so not everyone of the demand is maybe booking the direct flight. On the other hand you may offer feeder flights to/from LGA to smaler airport around and transport the passenger from there to LHR.

Well yes, it is incredibly complex with how you can feed passengers. Why is there that sort of demand for a direct LGA-LHR route if what you guys have said about demand calculations is true? Now I'm curious. :)

Well yes, it is incredibly complex with how you can feed passengers. Why is there that sort of demand for a direct LGA-LHR route if what you guys have said about demand calculations is true? Now I'm curious. :)

"Demand based on real-world schedules" does not mean we use "actual point-2-point demand". Demand is aggregated for bigger regions of course.

"Demand based on real-world schedules" does not mean we use "actual point-2-point demand". Demand is aggregated for bigger regions of course.

Interesting.

I have a feeling I would understand it more if the presentation on the LHR-SYD through Dubai topic had been in English, but it makes sense that you guys would do that.

That's really good to know.

Probably I would appreciate admins to have the translation of the convention keynotes apart from those slides that are shown in English. Maybe English version of translation can get more players to know what is going on and will be happening.

I agree with the avbove. There are a lot of players with nationalities other then the German. And although I am from Holland and understand a big part of what is said in the presentation, I miss some essential things. It would be highly appriaciated if you guys, in the future, do these kind of things in English. Then I would even might take the trouble of getting in the car and drive to the German location ;-)

Back on topic: I think that the only valid reason to build a terminal at your hub is because you want to get your rating up.