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Start ::  Pilot's Lobby ::  Pilots' Pub ::  ECON flight 600009 PAKT to PAWG
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ECON flight 600009 PAKT to PAWG

Oswald Posted: 08.04.2019, 17:41



registered: Oct. 2017
Posts: 66

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last visit: 10.06.19
Hi,

did this Econ flight tonight with Cessna 337 (the push pull), weather was awful, everything worked out fine.

After landing I checked the profit and compared to others with the same flight. What I don't understand is a difference in Pax and Cargo revenue which in my case summed up to 1106.95, in John's flight for instance 2034.45. Same distance, same Pax no., same cargo, about the same flight time, only different aircraft.

Is that logical?

Regards, Oswald
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jer029 Posted: 09.04.2019, 08:16

jer029

registered: Nov. 2011
Posts: 956

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last visit: 15.06.19
Hello Oswald,

Mike will probably weigh in (pun intended), but I'm guessing that it was a combination of things including the Max. Takeoff Weight of the aircraft.  The Cessna 336 is heavier and has a much higher max takeoff wgt than the lighter Beechcraft A36 (4630 vs 3400).  This is an important factor in many calculations.  Additionally, flight time and fuel burn has some affect.  Your flight was shorter (.8) than mine (.9).  So you flew shorter distance and burned more fuel.  I flew longer and burned less fuel.  All of these things probably combined to cause the difference in revenue.

Mike will likely be able to give you a more detailed and definitive response when he gets a chance.

John

jer029
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Oswald Posted: 10.04.2019, 15:24



registered: Oct. 2017
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last visit: 10.06.19
Hello John,

I wasn't refering to profit, but to pax and cargo revenue which I understand from ECON 2018 Instructions are solely " based on the number of passenger miles and cargo ton-miles which you deliver successfully to the destination", therefore should not be dependent on chosen aircraft.

Example flight 600009:
Wolkenflug Pax Revenue 905.34 (Cessna 337)
Rogers Air Pax Revenue 1663.92 (Beech A36)
Motown Xpress Pax Revenue 1497.81 (Piper PA 32)
Llama Airways Pax Revenue 847.74 (Cessna 208)

Oswald


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Westcoast Posted: 10.04.2019, 16:22

Westcoast

registered: Jan. 2006
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last visit: 09.06.19
Oswald,

You are very perceptive to have picked up this feature of our Econ model; I think you are the first pilot to have commented on it.  You are correct, there are both revenue and cost differences between flights carrying the same passenger and cargo loads flown in different aircraft.  The basis for the cost differences are probably apparent:  heavier aircraft cost more to buy, operate and maintain.  In general the total operating costs increase more-or-less linearly with aircraft size (MTOW).  Since heavier aircraft can carry more passengers and/or cargo, this allows approximately uniform ticket pricing per passenger mile or cargo ton mile.  However, for light aircraft, the increase in total operating cost with aircraft size is steeper than it is for heavier aircraft.  As a result, applying the same ticket pricing to light aircraft will generally result in a loss.  To compensate for this, our model sets ticket prices per passenger mile higher for lighter aircraft.  This is why John's flight yielded higher revenue than yours; he flew a lighter aircraft.  This is not unrealistic.  If you look at the real world data for ticket price (cost to the consumer) per seat mile versus flight distance, you will see that it is almost flat (small negative slope) for flight distances greater than about 800 nm (larger aircraft).  However, for shorter flights (smaller aircraft) it has a large negative slope.  That is, higher per seat mile price for shorter flights.  This reflects the fact that the operating cost per seat mile is lower for larger aircraft.  You can think of this as an example of the "economies of scale"; the cost of hauling a passenger a given distance is less when there are 400 of them, than when there are four.  This fact is incorporated in our cost model.  To offset the higher operating costs per seat mile of short flights in light aircraft we built in a revenue (ticket price) boost for light aircraft.  So, there ae two reasons to fly Econ flights in a full, or nearly full aircraft: (1)  The total operating costs are proportional to aircraft weight (MTOW), whereas the revenue depends only on the number of passenger-seat miles and cargo ton-miles, and (2) Particularly for lighter aircraft (<30,000 Lbs MTOW), heavier aircraft generate less revenue per passenger seat-mile and cargo ton-mile.  So, using a larger aircraft where a smaller would do gets you coming and going.

Mike

Westcoast
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Oswald Posted: 10.04.2019, 18:17



registered: Oct. 2017
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last visit: 10.06.19
Hi Mike,

thank you, got it. It is a complicated matter, I'm impressed that you took this into account while preparing the Econ model.

Oswald
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