Tips on starting an airline

[airlinemanage]

My situation: I started my airline 3 times, used three different strategies, ends up the credit rating always remain in CC, because the money I earn is not enough to cover expenses. I stupidly paid 5,000,000 after starting the airline, and my credit rating drops from CCC+ to CC, now it seems I need a long long time to improve it. How do you start your airline then? Is earning 70000-80000 for a flight using A320 is normal?

[Dokhu]

Hi airlinemanage.

Keep in mind that, while the rating is low, the flights will not produce enough money no matter how big your aircraft is or how big the demand is. Cash flow is very important at this time. I earn 70.000 with a E190-E2 with less expenses.

Regards

[Zortan]

Patience is key, in my opinion. 70-80k is normal for an A320 family aircraft on a longer route, with a premium-heavy configuration. I personally earn less money since I use realistic configs.

[Anzatax]

Usually an A320 in my opinion rarely earns more than $100k on a flight unless it is quite long ranged, so your profits seem to be quite good. The credit rating is very hard to manage right now, because of the latest credit rating simulation. As Zortan says, patience is the key, because when your reputation gets closer to 100%, you can charge higher prices and subsequently make flights more efficient and increase credit rating that way.

I usually start my airline in SIN, so in terms of reality I only operate A320 and bigger-sized aircraft, so I mainly lease aircraft. My strategy will not help in any way, but I usually get the smaller starting loan and lease 4 A320's and try to climb my way up through efficiency. I will then find good aircraft on the used aircraft market to lease.

However, for starting in areas that allow (profitable) regional flights, I would get the bigger loan, lease some good-sized aircraft (like the A320), and then purchase some smaller regional jets or props with the leftover money (since purchases will become assets to the airline and improve credit rating). I will then fly some profitable flights and depending on the circumstances I will either buy more regional aircraft or lease some bigger airliners (when the credit rating permits).

Operating a low-cost carrier would most often be more profitable than a full-service carrier.

[squaregatescrub]

You are doing fine. It took me 15 days of flying 737s before I got my airline going. Patience is the key.