I've seen that the Kaitak thread is pretty dead at the moment, usually I don't do this- but I'm going to contribute a little bit by writing a little bit about my airline.
The company Jet Set has been founded a couple of weeks ago and is located in Alaskas largest city Anchorage, which by the way, is not it's capital.
Jet Set uses a fleet of 727s and 737s to connect Alaskas larger cities in a hub and spoke system. Mainline services include cities in the vast north slope like Barrow and Nome and of course cities in Alaskas beautiful southern pan handle, like Ketchikan and Juneau, featuring beautifully located cities with very scenic approaches.
Jet Sets highest frequency city is Fairbanks, which is being served with five daily 727 services.
Jet Set Express is the companies regional turbo-prop daughter. It serves airports with runways too short for 727 and 737s like Dutch Harbour with Jetstream 41 turboprops as well as connecting regional communities with lower demand like Unalakleet.
For very short fields or long, thin routes, the company uses PC-12 single turboprops and Beechcraft 1900s. Service and passenger comfort are not quite comparable to Jet Sets mainline service but are adequate to provide a proper travelling experience to Anchorage.
Currently Jet Set Express is using it's operating income to expand it's fleet of PC-12s to provide more and more of Alaskas smaller communities with proper connections to Anchorage.
If you have any questions or comments, please feel free to post them, it becomes quite monotonous to post these threads without anybode answering ^_^
Of course I know that Anchorage isn't the capital ;)
How are the 727s/1900s doing? I tried the 1900Ds once, but they didn't work for me. Is your airline generally successful?
Cheers,
Aaron
His express airline looks to have pretty full flights but his main airline (jet set) only has load factors of under 70%. I think it is not that highly profitable at the minute because of the low expansion.
Hey there, the 727s are actually doing quite well! It’s suprising that such an old bird can work so efficiently- I wouldn’t have thought so, even though it is rather large for the market within Alaska, a smaller 737 could probably do a better job.
The 1900s were just a disaster- it would take prices at about 150% to make things work, which really isn't bearable. The PC-12 is a very nice performing plane, even though it is a little too small... I'm still trying to make up my mind on what to do- maybe the slightly larger Grand Caravan is a better option than the 1900s. The Twin Otter generally is a lovely aircraft, however imagine operating those things in Alaska- it must be cold, slow and bumpy, it just doesn't feel right to operate those bangers in passenger service, just like the Lets.
The Jestreams are actually doing quite okay.
@CBE
Wow- I think I actually have a stalker
The Alaska market for the mainline routes is saturated with the frequencies that I'm currently providing. Jet Set is able to sustain itself and turn a small profit, which will hopefully increase, as the capacity of Jet Set Express increases, every transfer passenger is a desperately needed one, which is, why the main target is getting more communities connected within Alaska, however I don't have that much time on my hands currently. which is why I try to at least schedule one airplane a day. That doesn't make up for a lot of growth, but at least a stable little bit :)
Those numbers which are private are not at all hard to find out as the basic information is already public and with simple maths you can calculate the exact load factor (what I wrote was an estimation). Though I can not calculate your exact profits but I can estimate from looking at your ratings, configurations, planes and other expenses. You will learn with time ;). I find it very important to briefly know my competitors profits (though I can not estimate if they do not spend all their money). I am not your competitor so no need to worry :).
A few weeks ago I estimated profit of Indonesia World Airways (Idlewild), a competitor to a friend of mine's.
My calculation resulted in determining they were operating iwth 72.97% profit margin and were racking up over 300 million AS$ weekly profit.
Tools used:
- Average load factor for the past week
- Route price Y/C from Market Analysis
- Seating Config(s)
- Schedule and Frequencies
- Assumed service cost (erring on the higher cost side)
Input all numbers into Excel and you can get pretty interesting information, if you know how to work the numbers.
It was a bit tedious and time-consuming process (several hours of data gathering) but I was tired of scheduling so it was a welcome distraction. It could have been calculated much quicker by using sample data and doing statistical inference from sample about his whole airline. But I wanted a "really precise" answer so I compiled virtually all route data to do the calculations.
A few weeks ago I estimated profit of Indonesia World Airways (Idlewild), a competitor to a friend of mine's.
My calculation resulted in determining they were operating iwth 72.97% profit margin and were racking up over 300 million AS$ weekly profit.
Tools used:
- Average load factor for the past week
- Route price Y/C from Market Analysis
- Seating Config(s)
- Schedule and Frequencies
- Assumed service cost (erring on the higher cost side)
Input all numbers into Excel and you can get pretty interesting information, if you know how to work the numbers.
It was a bit tedious and time-consuming process (several hours of data gathering) but I was tired of scheduling so it was a welcome distraction. It could have been calculated much quicker by using sample data and doing statistical inference from sample about his whole airline. But I wanted a "really precise" answer so I compiled virtually all route data to do the calculations.
How would he make so much money with aircraft leased at standard prices that profit margin sounds EXTREMELY high?
Oh, I investigated the case a bit myself and he operates with a very low rating which makes that profit margin sound reasonable but with my strategy of high rating he can be crushed as he will not be able to make a very drastical change in a couple of days. I have a competitor in Venezuela using the same strategy (next month he will be history).
A few weeks ago I estimated profit of Indonesia World Airways (Idlewild), a competitor to a friend of mine's.
My calculation resulted in determining they were operating iwth 72.97% profit margin and were racking up over 300 million AS$ weekly profit.
Tools used:
- Average load factor for the past week
- Route price Y/C from Market Analysis
- Seating Config(s)
- Schedule and Frequencies
- Assumed service cost (erring on the higher cost side)
Input all numbers into Excel and you can get pretty interesting information, if you know how to work the numbers.
It was a bit tedious and time-consuming process (several hours of data gathering) but I was tired of scheduling so it was a welcome distraction. It could have been calculated much quicker by using sample data and doing statistical inference from sample about his whole airline. But I wanted a "really precise" answer so I compiled virtually all route data to do the calculations.
I never had an airline having profit margin higher than 20%. that's over 70%, my goodness...
yeah, it's a great market to run. there is nearly no problem to fill in CGK-SUB/DPS flights in any way. but international routes in Indo are usually disasters. great country if you don't want to worry about index affecting your booking too much
After the slow and steady expansion within Alaska, Jet Set and Jet Set Express have become two stable airlines with constant, stable profits. While we are expanding into more and more small airports, we have to be able to offer our costumers better connections, which is why we have agreed to interline with "West Express", who will provide is with services to some US destinations, furtheremore Jet Set has introduced services to both Hawaii and Los Angeles, stretching the 727s range.
Also Jet Set Express is using the maximum range of their Jetstreams on the newly installed Fairbanks to Seattle route. At five hours and thirty minutes, the flight time is still shorter than using the Anchorage hub to connect to Seattle.
Also Juneau has received it's daily service to Seattle.
After the slow and steady expansion within Alaska, Jet Set and Jet Set Express have become two stable airlines with constant, stable profits. While we are expanding into more and more small airports, we have to be able to offer our costumers better connections, which is why we have agreed to interline with "West Express", who will provide is with services to some US destinations, furtheremore Jet Set has introduced services to both Hawaii and Los Angeles, stretching the 727s range.
Also Jet Set Express is using the maximum range of their Jetstreams on the newly installed Fairbanks to Seattle route. At five hours and thirty minutes, the flight time is still shorter than using the Anchorage hub to connect to Seattle.
Also Juneau has received it's daily service to Seattle.
Sounds like a potential partner for my airline Star Jet! ;)
Most of U.S airlines on Kaitak server are teaming up, even between different alliance. You can see Air Atlantica (3N) having IL with Aero Magic (Mondial). Hwak also has IL with Aero Magic. Fly to Miami and RENELINE are in the same alliance.
It seems that Aero Magic and Hwak have pretty open IL at this point
Most of U.S airlines on Kaitak server are teaming up, even between different alliance. You can see Air Atlantica (3N) having IL with Aero Magic (Mondial). Hwak also has IL with Aero Magic. Fly to Miami and RENELINE are in the same alliance.
It seems that Aero Magic and Hwak have pretty open IL at this point
Why? On Idlewild most airlines have pretty open interline policies and with the exception of two U.S. airlines, all other U.S. airlines interline among themselves, including the 1st and 3rd largest one. The ones that do not interline with others are 2nd and 4th largest one. th, 6th, 7th etc all interline among tehmselves and with 1st and 3rd largest ones. Plus, very open interline policies with any other airlines from other countries.
