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How to decrease the price of new routes?

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How to decrease the price of new routes?

Messagede menze » Jeu Mai 10, 2018 10:34

Hi there,

following question:

As i started with my airline i had a lot of short-haul routes with only little profit. Now i want to sell all my short-haul routes to open long-hauls. I thought that the price of new routes should decrease, if i sell my old routes..

As an example i noticed the price of MUC-SVO before i sold any route and after i sold MUC-ZRH and MUC-CDG. It didnt change at all.. still at 182 mio with 0% subsidies.

Is there no chance to decrease the price of new routes?

Thanks a lot

menz
menze
 
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How to decrease the price of new routes?

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Re: How to decrease the price of new routes?

Messagede Puls Air » Ven Mai 11, 2018 09:50

That's the way subsidies works.
If you have to sell some lines, it's often more interesting to sell all the routes from this hub : it will reset the subsidies for this hub.
Then you buy your new routes (and re-buy some of your former routes if you want to keep some)
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Re: How to decrease the price of new routes?

Messagede menze » Ven Mai 11, 2018 14:06

just to get you right:

if i sell all of my routes besides ONE left, the SVO route will still cost me 182. But after selling also the last route i will pay the prices i would pay like after opening a new hub?
menze
 
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Re: How to decrease the price of new routes?

Messagede Puls Air » Ven Mai 11, 2018 14:51

It won't cost 182M$ but that the idea.

Subsidies depends on "Value of the routes" you have, that is the total of $ spent to buy routes.
Example : 3,1 billion $ for my ARN hub
Image

So if you keep only 1 route before buying other routes :
* If the price you paid earlier for this route was low, for example 20 M$ (if you bought it at the beginning), then your subsidies will be rather good
* If the price you paid earlier for this route was high, for example 300 M$ (if it was one of the last route you bought), then your subsidies will be bad

I hope the explanations are quite clear, english isn't my native language :)

If "Value of routes" becomes 0$, you "restart" with full subsidies
Libérez les tutos !
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Re: How to decrease the price of new routes?

Messagede menze » Ven Mai 11, 2018 15:41

Thanks a lot for this explanation.. i think i got it in theory, anyway nothing changes for my route prices yet..

i had 24 routes ex MUC.. i now sold 7 short-haul routes, which i bought early, so they were pretty cheap. Now i have 17 routes left and a value of 1.5 billion, but still no subsidies at all.. shouldnt this have changed already?
menze
 
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Re: How to decrease the price of new routes?

Messagede crationis » Ven Mai 11, 2018 17:27

menze a écrit:Thanks a lot for this explanation.. i think i got it in theory, anyway nothing changes for my route prices yet..

i had 24 routes ex MUC.. i now sold 7 short-haul routes, which i bought early, so they were pretty cheap. Now i have 17 routes left and a value of 1.5 billion, but still no subsidies at all.. shouldnt this have changed already?


The maximum subsidy is 90%, you can get it with high demand routes when the value of your routes is 0$.
The subsidies is always 0 when you have around 1.2-1.4 billion$ worth of routes

Even if you go down to 1 billion, the subsidies will then be around 10%, but you'll only get if for one or two routes as it will have reached the 1.2-1.4 billions maximum again

When you want to change the routes of one of your airport, the easiest is to sell all the routes, even the ones you'll need after your change.
The only way you don't have to sell everything is if the lines you want to get rid off are lines that you didn't buy with subsidies
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Re: How to decrease the price of new routes?

Messagede menze » Mar Mai 15, 2018 08:05

thank you all for your help..
sold all routes now and it worked great :)
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