Hi everyone.
I was monopolising a couple of routes and I had a 100% capacity. Suddently this dropped dramticaly....!
I checked it out and found that AGEX in Staepleton has dropped more than 100 units in the passed 30 days....
I guess this is why my pax fell so much, since i;m still the only one flying these routes. But what affects AGEX? What is it that make it go up and down?
Is there anything I can do now that the index is so low?
Thanks,
Costas
It´s quiet easy what to do: manage your airline. This is what every simulation of business and economy should be about, doesn´t mind in which business. A simulation of business and economy doesn´t mean just to grow and getting bigger and bigger. It´s also about solving problems and having ideas how to manage the airline in a recesion. Have you saved money? Do you really need to offer 5 flights a day on one route? Find something you can save money with. Make your airline more efficent. Try to figure out how your competitors are coping with this situation.
The AGEX just shows you the recent developement of the "server-economy". It´s like everywhere. Sometimes it´s fine and the economy is growing, sometimes it´s bad or even worse and the result is a recession. Up and down and up again and even higher than befor. That´s pretty much it.
The AGEX just shows you the recent developement of the "server-economy". It´s like everywhere. Sometimes it´s fine and the economy is growing, sometimes it´s bad or even worse and the result is a recession. Up and down and up again and even higher than befor. That´s pretty much it.
If I am not mistaken the AGEX is NOT based on the server economy. It is more like an algorythmic model to simulate a server economy and with that the demand of passengers.
If I am not mistaken the AGEX is NOT based on the server economy. It is more like an algorythmic model to simulate a server economy and with that the demand of passengers.
Thats correct. The "server-economy" doesn´t mean how much airlines are operating and which capacities they offer. It is a simulation of the demand of PAX an CU and that is the "economic situation" we have to cope with.
I understand all this, and all this is nice! But I'm wondering if these fluctuations are random or if they follow some pattern. They must depend on something....
I understand all this, and all this is nice! But I'm wondering if these fluctuations are random or if they follow some pattern. They must depend on something....
The AGEX is a computer Formula. It is independent from the Real world and it is independent from the Server world. The Fluctuations are random. You can not predict when it will fall or climb and how much it will climb or fall. You have to deal with it.
The AGEX is a computer Formula. It is independent from the Real world and it is independent from the Server world. The Fluctuations are random. You can not predict when it will fall or climb and how much it will climb or fall. You have to deal with it.
You can predict (not exactly), using previous data. You have to use a specific econometric model to predict it. I thought about modelling it, but it would take some time. But yes, it's "random".
I wonder how low the AGEX is going to go in Sapleton. This downward trend is killing me. I was doing very well in nearly all my routes when the AGEX is at the highest peak and how my SLF is dropping about 2% per week. What would be a good strategy during this point? Adding more flights to different cities and hope to get more transfer passengers or reducing flights on routes that are not doing very well? I would just like to know how others are coping and managing their airlines.
I wonder how low the AGEX is going to go in Sapleton. This downward trend is killing me. I was doing very well in nearly all my routes when the AGEX is at the highest peak and how my SLF is dropping about 2% per week. What would be a good strategy during this point? Adding more flights to different cities and hope to get more transfer passengers or reducing flights on routes that are not doing very well? I would just like to know how others are coping and managing their airlines.
I have exactly the same problem my friend. What i've done... i have removed the schedule completely from the "dead" routes, and opened new routes to new destination just to see how things will go. I have not closed the "dead" routes though. If the index goes up again then i'll operate them againa...
What would be a good strategy during this point?
I think that there is no valid universal strategy. It really depends on your business and your strategy. I also experience a gradual decline in demand during the last weeks and I decided to drop many routes and returned many airplanes in a move to adapt my capacity to the declining demand. I am also looking to increase efficiency of my flights and adjusted capacities on particular routes with additional flights while other destinations were reduced or dropped.
My current strategy ensures that the airline is able to cover their costs. I also decided to add comparably smaller aircraft to my fleet (Dash 8s) to retain connections which simply don´t justify the scheduling of bigger equipment. I compensated the dramatic reduction of 76 aircraft (!) through higher (and more realistic) seating-configurations on my remaining planes. My smallest aircraft is now the 37-seat Dash 8-100 and my biggest plane will be the 155-seat MD-88 after re-organization :blush: .
One tip, would be to have a look at your widebody fleets. In my experience long distance flights are more heavily affected by a drop than short distance flights. For example on Nic I have had an A380 which was full four weeks ago and patronage is now only have of what it was, which means I am burning money big time. So take have a look at those potential money wasters and get in some cash by canelling their lease.
Thanks for all the great answers, this has been bugging me even though I suspected that the causes were attributable to all of the things mentioned here. I rejoined AS right when the market had peaked, so I've been getting a good lesson in what a contracting airline feels like. It is sad to give up routes and aircraft, but I am tired of bleeding out too.
I totally notice that my Dash 8s and shorter routes are surviving.
Now here is a question: should I abandon my interlining agreements? Is there a way to check to see what each agreement is actually doing for traffic? I appreciate that I have interlining partners, but it won't be worthwhile if they put me out of house and home.
Great topic, thank you for starting it. The market performance has been turning me off of the game, but the perspective offered here - it is a business simulation that challenges you during growth and recession - is well received here.
Now here is a question: should I abandon my interlining agreements? Is there a way to check to see what each agreement is actually doing for traffic? I appreciate that I have interlining partners, but it won't be worthwhile if they put me out of house and home.
Unless someone corrects me, there is no way to know in your hub or at another airport where you partner with more than one airline, how many pax is your partner transferring you.
The only information you can get is how many pax are from external or own feeder at each of your flights when you check the flight number information.
Unless someone corrects me, there is no way to know in your hub or at another airport where you partner with more than one airline, how many pax is your partner transferring you.
The only information you can get is how many pax are from external or own feeder at each of your flights when you check the flight number information.
Thank you for your reply. While I am aware of that "quirk" it strikes me as an odd omission as interlining is touted as a good strategy for growth and sustainability and yet we lack the information needed to make detailed decisions about the viability and performance of the relationship. I wonder if this is how things are in reality?